Gaiam - Competitors

Gaiam Competition

Now Viewing Gaiam's competition in: Clothing Stores

Recent Developments

Retailers Downscale High-End Lines - Some retailers are downscaling their luxury lines due to the sluggish economy and slowed consumer spending. As consumers increasingly turn to discount stores to stretch their dollars, luxury goods are hit hard. Cashe closed 15 stores in 2008 and plans to close more. Coldwater Creek dropped its high-priced Spirit line after testing it in 50 stores. Ann Taylor is discounting new skirts and dresses 20 percent, and Talbot's has discounted 15 of 34 high-end items on its website.

Price Primary Retail Mover - The economic slowdown is forcing most Americans, even affluent ones, to shop at wholesale clubs and discount apparel chains. While discount stores such as Costco and Wal-Mart posted gains in April 2008, traditional apparel retailers struggled. Consumers are focusing on value and price, forcing many apparel stores to discount more than usual. While wholesale clubs had a 9.2 percent same-store sales gain as measured by the UBS-International Council of Shopping Centers, apparel chains posted a 1.4 percent decline.

Retail Sales Surpass Expectations - Increased promotions and discounting and a late Easter caused retailer sales in April 2008 to exceed analyst expectations. But sales at traditional apparel stores were mixed: the Limited, Gap, and Pacific Sunwear had lower sales than expected, while The Buckle and Children's Place Retail Stores beat analyst forecasts. Stores that beat expectations did so with increased discounting, which lowered margins. Analysts hope that the economic stimulus checks, which began being distributed in April, will increase apparel sales.

Competitive Landscape

Demand for clothing is strongly influenced by the growth of personal income. During the last recession, same-store sales fell 20 percent at Abercrombie and at Gap. Profitability depends heavily on correct merchandising (product selection) and marketing. Small stores can compete very effectively with large ones by targeting different customers. The industry is labor-intensive: annual revenue per worker is about $110,000. In addition to traditional competition from department stores, new competition in recent years has come from mass merchants like Wal-Mart and catalog and Internet retailers.

Full Industry Overview For Clothing Stores

Clothing Stores Industry Forecast

from Hoover's/D&B subsidiary First Research

US personal consumption expenditures on clothing, an indicator for clothing stores, are forecast to grow at an annual compounded rate of 5.9 percent between 2007 and 2012.

Consumer Spending Growth of Clothing Slows

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.