L.A. Majors Market: Cautiously Optimistic

Retail consolidation was on everyone’s minds, but manufacturer representatives reported busy showrooms and plenty of appointments during the Oct. 9–11 run of the Spring 2007 Los Angeles Majors Market, held at the California Market Center.

Buyers from Mervyn’s, Forever 21,Wet Seal, Nordstrom, Kohl’s, Charlotte Russe, Macy’s, Dillard’s,Windsor, Stage Stores, Filene’s Basement, Belk and Gottschalks shopped the market for juniors apparel. Representatives from the CMC said attendance is not monitored for Majors Markets.

In the wake of Federated Department Stores’ acquisition of May Co. last year, the retail giant has been converting some Marshall Fields and Robinsons-May locations into Macy’s and Bloomingdale’s and shuttering others altogether. The acquisition may be one year old, but the physical signs of it are still fresh in the minds of manufacturers who worry about the shrinking buyer pool.

Les Parker, a sales executive at New York–based Crest Jeans by USA Design Inc., said the retail industry has changed dramatically since his days as a buyer 30 years ago. “Fourteen years ago, there were more than 100 de-partment store [chains]; now there are seven,” Parker said. “Not everyone who used to sell to May Co. can be absorbed by Federated. How can you replace them?”

Manufacturers are feeling squeezed not just by the shrinking majors pool but also by other stresses, including rising gas prices and the war in Iraq. “Business is tough, but the situation is not desperate,” Parker said.

Allison Zoppel, an account executive for Fried Denim, said there is less business to go around and fewer people to call upon. With retail prices that hover just under $100, Fried Denim represented the high-end of juniors denim shown during the market. Zoppel said she saw key retailers and managed to open some new accounts.

Some manufacturers are finding alternate distribution. One major manufacturer who suffered a loss of business because of the retail consolidation has opted to sell his apparel through mass marketers such as Target, Parker said.

Steve Maiman of Los Angeles–based juniors manufacturer Eyeshadow remained upbeat in the face of consolidation. “The population in the nation hasn’t changed due to the consolidation. What is altered is that we’ve got less people to deal with that can buy more,” he said.

Reporting a busy market, Maiman said buyers are coming to his showroom in the mood to buy.

Michael Gae, co-owner of the Rep et Trois showroom, said the consolidation of the department store market has its benefits. “Consolidation means that there are fewer buyers. But the buyers at the market oversee more stores,” he said.

Buyers and executives from Macy’s and Dillard’s browsed through Gae’s showroom, where he showed his new lines: the Israelbased Irit, a contemporary sportswear label with wholesale price points ranging from $29 to $109, and Los Angeles–based Luluvia, a contemporarys novelty sportswear line with wholesale price points between $39 and $79.

Many of the majors buyers use the market to make test orders for new resources, according to Gae. “[The market] was also an investigative trip for a lot of people,” he said. “They’re shopping for what is new, or looking to develop a category that they don’t have.”

Ivette Vasquez, vice president of sales at Dollhouse, said her price points of $48–$54 retail for fashion denim appeals to buyers shopping for juniors and young contemporary customers. Major retailers have shown confidence in the product, which includes shorts in a variety of lengths, cropped suspender trousers in a dark denim and short-alls with novelty nautical buttons. The influx of alternative lengths and new, mass market– friendly silhouettes are revitalizing the denim market, she said. “The denim climate has been stagnant— it’s been struggling. Everyone is looking to make changes,” she noted.

While the skinny jean did well for the brand, Dollhouse is offering straighter, less-tapered versions for Spring. “The mood for Spring 2007 is optimistic,” Vasquez said.

Shorts Story

Last year’s romantic Victorian trends gave way to saucy nautical styles ranging from all-American sailor-girl looks to punk-pirate fashions. Stripes in red, green, navy and black were seen on tunics, dresses, sweaters, T-shirts and knit bottoms. Skinny jeans in black and red featured zippers and grommets.

Buyers also shopped for dresses in a variety of shapes and lengths. Terri Wan, designer of the juniors line at Angie, said jumpers were the hit item for Spring. Hitting mid-thigh with plenty of vol-ume, the little dresses beg to be paired with another ubiquitous item: leggings. Maxi-length dresses appealed to buyers at the Bila showroom, said Marja Kenney, the line’s design director.

The big story of the season, however, is shorts. Offered in a myriad of styles and fabrications, shorts offered buyers plenty of freshness. From tiny denim Daisy Dukes to slouchy and cuffed versions in suiting fabrics to long and skinny plaid Bermudas, shorts were everywhere. Bibbed shorts and shorts with suspenders in denim and cotton twill fabrications felt nostalgic, but were updated with body-conscious silhouettes.

A buyer for Mervyn’s who declined to be named shopped for two-fer tops and nautical-themed items. Special touches earned her buying dollars. “I’m looking for cute pockets, big, special buttons and gold buckles on belts,” she said.

“This [market] is a kick-off for the rest of the markets in Los Angeles,” Rep et Trois’ Gae said.

“It’s one of the premier times, with Los Angeles Fashion Week [set for Oct. 13–19] and the Los Angeles Fashion Market [set for Oct. 20–24]. It’s almost like a three-week show.”

—With contributions by Andrew Asch