A Few Well Merchandised Specialty Chains Buck The Negative Retail Tide.

Implications: Discount stores are not the only sector holding up well in what has been described as the worst retail apparel environment in the past twenty years.   Innovative specialty chains that know their customers well are moving forward with fresh assortments and new product categories that speak to their customer’s wants and needs.

Analysis: Before you write off the whole retail apparel sector for the rest of the year, I recommend you spend a little time investigating a few gems that are doing quite well, thank you.  While many CEO’s are telling investors that low consumer confidence and a looming recession are to blame for reduced traffic and lower comparative sales in their stores, they have to answer as to why their some of their competitors are thriving in the same environment.   Here is a short list of some specialty apparel retailers that are performing well right now:
Guess – The Marciano brothers successfully transformed the brands business model from that of a department store vendor to a global retail powerhouse in only six years.  
J. Crew – Under the guidance of ultimate merchant Mickey Drexler, has grown with its customer and bounced back from being a dying brand to a multichannel success story.  
Urban Outfitters Inc. – All three brands (Urban outfitters. Anthropology and Free People are all registering positive comps.  
Aeropostale – Has been winning the highly competitive teen segment with compelling, trendy products at affordable prices.  
H&M – The European “fast fashion leader” is performing well in the U, S. and around the world.  
Lululemon – This relatively new Yogi inspired chain, featuring superior performance exercise clothes, is performing well and expanding rapidly thanks to superior customer service.
 
 What do these winners all have in common: Although each brand has its own operating model, what they have in common at the top, are passionate and extraordinary retail apparel merchants, providing a unique vision focused on the wants and needs of their customers.