Try this niche on for size
It may not be considered a core category for hardware and building supply dealers, but apparel is not just for shopping malls, either.
There are opportunities in jeans, gloves and jackets, and there are some big brands working to generate traffic to the channel’s apparel aisle.
Furthermore, a January survey of HBSDealer readers found that 46% of 119 respondents said they expect an increase in apparel sales in 2016. The next largest group — 24% — said they expect “about the same.” Only 12% expect a decrease in sales.
(Another 18% said it was just “not our thing.”)
An interview with Dave Jones, co-founder of Intown Ace in Decatur, Georgia, and a successful purveyor of apparel, points to a handful of keys:
• Know your market.
“Work wear” means different things to different people. In urban markets, “lumberjack” clothing often flies off the shelves for its fashion appeal. In rural Virginia, a pair of utility overalls is much more likely to be found on the farm or construction site.
Jones says cornering his niche was a big part of his success in apparel.
“The thing that helps us is we’re the only Carhartt dealer in Atlanta,” he said. “There’s really no one else, so that drove a lot of sales. All of a sudden, Carhartt got popular [thanks to] hip-hop, so that opened up a big market.”
• Don’t underestimate the power of design.
Hardware apparel is certainly of the “function over form” variety, but that doesn’t mean customers don’t care about looks. According to Jones, the product category that outperformed Carhartt during the Christmas season was women’s apparel: shawls, leggings, ponchos, socks, hats, scarves, gloves — and particularly novelty and decorative items in both men’s and women’s categories. “This was the biggest year yet, but it’s also because we’ve been building up and growing the category,” he said.
• Understand consumer impulses.
Apparel purchases could be the primary driving force behind a customer’s visit to your store. But it could just as easily be an afterthought. Jones says he takes an experimental approach to merchandising his gift and impulse area.
“We’ve got a big gift area, and the gals who do the buying kept trying different things. They’d sell out and we’d bring more in, and they’d sell that out. The customers are driving those decisions.”
• Make sure it’s worth the trouble.
Clothing isn’t necessarily easy for a hardware retailer to dabble in. “It takes a big financial commitment. You order it six months out, and it takes up a lot of space. It’s not like there are people in every day, grabbing it left and right.”
Jones says he eventually stopped carrying jackets because they often sat on the shelves for years before a snow prediction sent locals scuttling for winter clothes. He acknowledges that dealers up north do much better.
Long story short: If the opportunity exists, be ready to commit the proper resources. Dressing rooms may only be a part of that equation.