The NPD Group

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The Elevation of Denim

denimelevationIt is the Go-To for Going Out

Denim has seen its share of evolution in the 140-plus years since Levi Strauss started selling blue jean overalls. In its modern iteration, it may be the item of choice for the smart, stylish dresser. With the rise of “athleisure” in casual apparel, the denim category is becoming elevated, with designers showing it on their runways, and brands offering it in custom fits, new finishes, and looks that are geared for the club as well as the office.

The Rise of Denim in Workwear

Eric Goldstein, owner of Jean Shop, a bespoke denim store in Manhattan, says a big part of his business is for men who want denim for “going out” or for work. “We do a tremendous amount of raw denim, and you can wear that with a leather shirt or jacket on top,” Goldstein says. “Our typical customer is the more articulate man, like the banker who wants to look casual, but cool and clean. Denim is being worn to work everywhere — New York, London, and the financial world. It’s not just for casual Friday anymore. Part of the staple work wardrobe is dark, crisp jeans. Our customers come into our store specifically looking for it.”

Goldstein’s customers reflect data that show denim remains consumers’ top apparel choice for a variety of occasions, from work to going out to dinner to running errands. More than a third of all consumers (36 percent) prefer denim jeans for work, followed by casual and dress pants (27 percent each), according to the Cotton Incorporated Lifestyle Monitor Survey. Men are significantly more likely than women to prefer denim for work (41 percent versus 32 percent).

WGSN’s junior’s editor, Sarah Owens, says denim has become an acceptable look in the workplace, especially given the premium options now available both in fit, finish, and feel. She says, “It’s quite common now for women to wear a pair of relaxed, boyfriend jeans with a tailored black blazer — creating a high/low aesthetic that has been circulating among Fashion Week street style trends for the past few years.”

Lorna Buford, editor of DenimBlog, says jeans are such a wardrobe staple that consumers will wear denim as a standard work item, unless they have to wear a uniform. “Plus, with the added comfort that jeans now have, it’s a bonus,” she says. Women have the option of pairing them with heels and a dressy jacket or smart sweater, while men just need to think “dark and neat.” AskMen advises male readers to leave their club denim with intricately stitched pockets at home.

The premium denim company DL1961 even has a category named “Office Denim” on its web store to help consumers make the right style choice for their particular job situation. The brand has also added to denim’s comfort factor by introducing lines like “hybrid” “intelligent,” and “DLX” denim that increases movement, retains shape, and even protects from odor-causing bacteria.

“The other direction we see denim headed is a workwear story with raw constructions in rich indigo reworking classic silhouettes in more elongated fits,” Owens says. “This has also been executed in black to give a more contemporary touch to workwear themes.”

On the Streets to on the Go

As favored as denim is for work, it’s preferred even more for shopping or running errands (61 percent), according to Monitor statistics. That’s distantly followed by casual pants (15 percent), athletic pants/shorts (10 percent), shorts (7 percent), and leggings (5 percent).

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Of course, the idea of looking fashion forward when shopping or running around town with the kids was made popular by celebrities. Whether it’s Jessica Alba pushing her baby carriage or Justin Timberlake grabbing a coffee, the look is about the right jeans paired with the right shoes and accessories. That may be why more than four in 10 consumers (41 percent) say they prefer to wear denim jeans when they want to look and feel good in an outfit, followed by casual bottoms (20 percent) and dress pants (17 percent), according to the Monitor data.

Of course, looking good is important when going out to dinner, and denim is also the top apparel choice among both men and women combined (37 percent), the Monitor survey shows. That’s followed by casual pants (26 percent), dress pants (17 percent), dresses (11 percent) and skirts (4 percent) for women, and athletic pants/shorts (2 percent).

“The demand for denim in a more formal or ‘going out’ setting has been increasingly apparent, even before the athleisure trend started to gain momentum,” Owens says.

Buford says she sees both men and women wearing denim in a dressier setting. “I still see people wearing their favorite black or indigo blue skinny jeans with heels and blazers — those are popular for going out.”

Denim Hits the Runways

More denim is also being shown in current designer collections. “The designers really promoted denim on the runways for pre-fall and pre-spring,” says the Doneger Group’s fashion director, Roseanne Morrison. “There’s been a ’70s vibe with the flare leg, the one-piece denim coverall, denim dresses. There’s also been some ’80s styles with the high waist and baggier fit. So it’s a new collection of denim looks that are coming out. We’re also seeing some lighter washes and original indigo without stretch,” she adds.

Owens says the runway has had an influence on the denim category, giving it a wider, dressier appeal. Men and women will continue to see it as more of a “going out” item, she says, “as we enter into the more premium aesthetic that is currently being influenced by current catwalk and trade show trends. From the catwalks, we have been seeing denim take on a more premium aesthetic, with elevated and glossy constructions on more sophisticated pieces such as the tailored denim set at Rag & Bone, Bottega Veneta, and Michael Kors.” Owens continues, “This new renaissance for the denim market gives it a polished identity originally established back in spring/summer 2011 by designers such as Celine and Derek Lam.”

501 Ascending

Levi’s is the originator of denim jeans. At the last National Retail Federation show in New York, James Curleigh, Levi’s global president, said the company is focusing on its core, but “going for more.” “There’s this notion of should you just do what is expected or should you do more?” he said. “Well, guess what? We’re going to do both.”

Levi’s is still the worldwide leader in denim. In fact, it tops the list of favorite brands of denim jeans among Monitor survey respondents at 32 percent. Levi’s is continuing its traditional 501 jean, and last month introduced the 501 CT (Customized & Tapered) line. The 501 CT is offered in a range of authentic denim washes inspired by San Francisco and California style, the home of Levi’s and the original 501 jean.

The brand is also expanding both high and wide. At the high end, it’s offering its $750 Lot 1 custom, made-to-measure jeans. At the same time, its Commuter Series, featuring reflective seaming and U-lock storage on the waistband, is one of its fastest-growing denim platforms. “Icons don’t remain icons forever unless you continue to innovate around them,” Curleigh said in his presentation.

Trend Tracking

At the recent PROJECT menswear show at the Jacob Javits Center in New York, many denim brands were on display, including Anonymous Jeans of Los Angeles. This maker featured innovative styles such as a 100 percent cotton skinny fit jean with a sarouel drop -— à la the harem pant. Among the many vendors, buyers could also find denim with waxed and leather-look finishes, as well as jeans in a range of colors.

The evolution toward better finishes and different fits is important, especially as denim is the top apparel item among consumers (28 percent), for times when they want to “be stylish or fashionable,” according to the Monitor data. That’s followed by dress pants (25 percent) and casual pants (17 percent).

Those looks are right on time for today’s customer. “Denim is here to stay,” says Jean Shop’s Goldstein. “And in men’s, the classic 100 percent cotton denim is favored. It’s a product you wear your whole life. You can wear clean and crisp with a jacket and tie, and then three years later use it to paint the house or do some other DIY project. We collect jeans in the store. So people can wear their jeans for years, then trade them in when they buy a new pair. They become vintage. And they all tell a story. And with the new pair, the next story begins.”

Catherine Schetting Salfino
Fashion Retail Reporter

Catherine Schetting Salfino covers fashion and retail. Her work has appeared in the menswear
publications Daily News Record, Women’s Wear Daily, Saks POV, and the Sourcing Journal.

Retail Awakening

Entire store chains are declaring bankruptcy and liquidating; department stores are transitioning to specialty stores; the leadership carousel at the top of organizational charts is spinning faster than ever; and online retailing titans are … opening brick-and-mortar stores?

There may never have been such a tumultuous time in the retail industry, one both rich in opportunity and rife in peril — both simultaneously.

So, I ask you, as a retailer, how are you sleeping at night?

New Retail Reality

Retail is not “evolving.” The pace and scope of change makes it so much more than an evolution, and the term “revolution” has morphed into a rather tired, trite cliché. Label it as you wish, but retail’s new reality includes:

  1. A disruptive convergence of channels;
  2. A newly empowered consumer who is clearly in charge; and
  3. A deep understanding that what worked in years past won’t work going forward.

[Read more…]

Happy Accidents

happy_accidentsOffering a wider assortment at every store helps increase sales while keeping complexity in check.

Less is more: This is the prevailing wisdom of today’s retail assortment strategies; assortments should be localized, limited, and carefully curated.

But, more often than not, bigger is better. Carrying a wider assortment in each store can boost sales without increasing cost, space needs or inventory. In fact, it’s possible to offer complete assortments while decreasing inventory. This sounds counterintuitive, but there’s logic to the strategy.

Why is the industry so fixated on slashing assortments? The “choice is a trap” and “paradox of choice” arguments — that consumers actually prefer only a few options instead of being confronted with a wall of choices — is gaining traction in popular culture and especially at retail. And, while it may be accurate in certain limited settings, it doesn’t hold true when applied to the industry at large. In fact, as assortment size goes up, sales always increase. [Read more…]

Checking the Pulse of the American Shopper

pulseFrom a retail perspective, it’s hard to find numbers or analysis of the past year without also finding the word “cautious” in close proximity. Holiday spending for 2014: Cautious. Consumer attitude from recent gasoline price drops: Cautious. Outlook for 2015…. You get the picture.

Given the depth of the financial crisis in 2008 and the habits of the post-crisis consumer, this attitude can hardly be blamed. For retailers, however, the state of the American consumer might better be described as “tempered.”

It describes a cohort that has been tried, toughened and come through stronger. That’s what MasterCard Global Insights research shows. Our most recent work on the attitude toward credit and debit spending — arguably a leading indicator for retailers — captures a more nuanced portrait of how Americans are feeling about the economy and their own pocket five years into the recovery. In short: The post-crisis consumer has learned some tough lessons and come through with a tempered but tactical attitude toward credit and debit usage, disposable income, and saving for the future. [Read more…]

Confirmit

confirmit_logo-smallConfirmit enables organizations to develop and implement Voice of the Customer, Employee Engagement and Market Research programs that deliver insight and drive business change. Confirmit’s clients create multi-channel, multi-lingual feedback and research programs that engage customers, empower employees, deliver a compelling respondent experience, and provide high Return on Investment.

Confirmit’s customer engagement model provides the power to listen to the Voice of the Customer, integrate it with financial, operational and free-form text data to generate powerful insight, and take action that will deliver effective business change and create competitive advantage.

Retail’s Darkest Secret: The Knowledge Deficiency Gap

Store format redux from retail’s emerging trends in 2015 has proven that retailers are marching ever forward in this disruptive industry landscape. Big format stores are investing in smaller format editions, department stores are dabbling in specialty and online e-tailers are dipping their toes into the sea of physical stores.

However, despite all of the market research, strategic development, capital investment and operational execution of newly designed stores, retailers must not overlook brick-and-mortar retail’s darkest secret — and perhaps largest problem in general — “the knowledge deficiency gap” of associates. Customers are coming through the door armed with an arsenal of researched information on products and pricing. The hidden truth is often the customers know more about the brand, products and policies than the associates in the stores. [Read more…]

How Consumers Pocket The Change In Global Oil Prices

pocketoilchangeProbably the biggest global economic story since the collapse of the credit-based global economy in 2008 is the implosion of petroleum prices, which has had a direct, if lagging effect on retail sales in the U.S.

As of this writing, the price of a barrel of crude oil has recently gone below $45. The global economic situation is volatile enough to potentially reverse this trend, however, for the moment the  benefit remains with the consumer. Thus it’s worth taking a look at the economic and spending behavior that follows oil price declines because it has implications for business and industry across the country. [Read more…]

RetailNext

RetailNextRN-Logo-H-v03.01-CMYK is the world-wide market leader and expert in retail analytics for brick-and-mortar stores. Its technology delivers comprehensive, real-time analytics that empowers worldwide retailers, shopping centers, and manufacturers to collect, analyze, and visualize in-store data. Using best-in-class video analytics, Wi-Fi detection, Bluetooth, and data from point-of-sale systems and other sources, the patented technology instantly informs retailers about how shoppers engage with their stores. The highly scalable RetailNext platform easily integrates with promotional calendars, staffing systems, and even weather services to calculate how internal and external factors impact customer shopping patterns. With the platform’s sophisticated yet intuitive tools, retailers can identify opportunities for growth, implement change, and evaluate success. RetailNext measures the behavior of more than 1 billion shoppers every year by collecting data from tens of thousands of sensors in retail stores and analyzing trillions of data points. Headquartered in San Jose, CA, RetailNext is a growing global brand operating in 40 countries.

When Activists Attack, Preempt!

activistsIt can happen fast, and without much provocation. It’s happened to companies from eBay to Family Dollar, Ann Taylor to Neiman Marcus, Safeway to PepsiCo. Even Apple.

Activist investors are making waves throughout the retail industry and beyond – and they will only continue to play a bigger role going forward. Understanding your company’s vulnerability to an activist and how to respond accordingly is a key ingredient to success in today’s retail environment.

Activist investors are nothing new, but they have recently broadened their scope from just trying to sell off a target company to influencing the company’s future performance through board representation, reorganization, returning capital to shareholders, changes in strategic direction, capital allocation plans and corporate governance reforms. [Read more…]

The New Luxury Consumer? Think: Multiple Consumers

atk_luxuryThe luxury industry may have lost a bit of its luster lately:  in 2014, Prada’s third-quarter profits sunk 44%; LVMH sales growth has slowed down; and analysts downgraded their recommendations for some listed companies.
There are several reasons for this. First, weak economic performance in parts of Europe and Asia is deflating consumer demand in those areas. Second, societal shifts, including a crackdown on corruption gift giving in China and last year’s protests in Hong Kong, are stealing some of the industry’s cache. At the same time, a lack of truly innovative products has failed to energize consumers.

But there is a big and most important reason:  the luxury consumer base has changed. It’s not your grandmother’s luxury market today, which brings tremendous growth opportunity for the luxury brands that can evolve with the changing face of affluence and market to these new customers based on their individual needs. [Read more…]

What’s Missing From Online Shopping

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Last year, US e-retail sales hit $263 billion, according to Forrester Research Inc., representing 8% of total retail sales. The company predicts that by 2018, e-retail will reach $414 billion. While it’s a staggering number, it will still only account for about 11% of total retail sales. So why is online shopping still such a small piece of the retail pie? According to research from Cotton Incorporated, there’s room for improvement online.

Browse Before Buying

Though the majority of purchases still occur in-store, online is quickly becoming the first stop for consumers looking to shop for apparel. According to the Cotton Incorporated Lifestyle Monitor™ Survey, 84% of consumers say they browse for clothing online using a computer or laptop, while 45% say they use a smart phone, 39% use a tablet, and 18% use a smart television.

“We’ve seen strong growth in the percentage of consumers who browse for clothing online using smartphones, tablets, and smart televisions, and we anticipate those numbers will continue to grow as they reflect the behavior of younger consumers who were raised with the technology and are increasingly comfortable with it,” says Kim Kitchings, Vice President, Corporate Strategy & Program Metrics, Cotton Incorporated.

Indeed, according to Forrester Research Inc., 69% of US adults who regularly purchase items online end up buying about 16% of their products through e-channels, and both numbers are expected to grow as so-called “digital natives,” or those consumers born in the early 2000s after the advent of digital technologies, continue to increase their spending power. [Read more…]