Fashion Retailers Chase Big Profits From 40+

Fashion retailers chase big profits from women over 40

Published Date: December 07, 2010- Kuwait Times
By Amie Streater

Suddenly, 35 is hip. Forty is hot. And 50 may quickly become the center of the fashion universe. Fashion retailers have always sought to cater to the whims of the young, thin and fabulous, but they're starting to figure out that aging baby boomer women - the youngest of whom are now in their 40s - don't identify with the likes of Lindsay Lohan. They're more likely eyeing actresses Halle Berry, Sarah Jessica Parker and Nicole Kidman. That's an important distinction for retailers to make, because boomer women carry a tremendous amount of economic clout.

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How much clout ? Women 35 and older accounted for about half of the $101.6 billion spent on women's clothing between March 2005 and February 2006, according to the NPD Group, a consumer and retail information company. And marketing research shows that older women are also spending more and more on clothing for themselves every year. "Retailers have to be thinking about this person, because she's got money," says Brenda Kinsel, a nationally known style expert and author of four books on dressing well, including "4
0 Over 40: 40 Things Every Woman Over 40 Needs to Know About Getting Dressed

I think the reason they haven't been paid attention to in the past is because we are so trained to see fashion on very young models and young bodies," says Kinsel, who has also appeared on "Oprah." "That is how it has traditionally been sold. The whole industry pivots around these really young models. We have to retrain our eyes." A small number of retailers, including Talbots and Chico's, have traditionally done well by catering to older customers. In fact, Chico's reported its best year ever in 2005.

Meanwhile, Gap - which last year dumped spokeswoman Sarah Jessica Parker around her 40th birthday for 17-year-old singer Joss Stone - lost millions, the company's annual report shows. Such patterns are getting noticed. Three traditionally youth-oriented clothing companies are now investing millions in new clothing concepts aimed at boomers: In August 2005, Gap launched Forth & Towne, a new division aimed at women 35 and older. Five stores opened last year, four in the Chicago area and one in a New York sub
urb. The company has announced plans to open 10 new stores in the coming months.

American Eagle will open at least four new stores this year under its new concept for men and women aged 25-40, Martin + Osa. Gymboree Corp - best known for its playwear for the preschool set - launched Janeville in 2004, aimed at women in their mid-30s and older. There are now 17 stores nationwide. And Talbots, which prides itself on "classic" styles tailored for the over-30 crowd, is making a $517 million investment in the boomer market with its recently announced plans to buy J. Jill, purveyor of a luxe
-bohemia look also popular with more mature buyers.

Companies have set their sights on the graying crowd quite simply, experts say, because they're seeing green. "A lot of companies have been smart in realizing when boomers hit 40 that there would be a lot of money to be made in making fashions that appeal to them," says Suzie Woodward Morris, president and chief image officer for Strategic Imaging Inc, a San Francisco-based lifestyle consulting company. "It all comes down to the money. It is such a huge market, anyone who doesn't pay attention to it is foo
lish.

There is so much at stake that the companies have clamped down on the information they dispense about their new ventures. "Competitive reasons" were cited by spokespersons for Gap and Chicos, who declined to share market projections, long-term strategies or even their optimism about the growth of the boomer clothing market. "We have been pleased with the customer response," was all Gap Inc spokeswoman Kimberly Terry would say about the performance so far of Forth & Towne. But Gap and its competitors are in
vesting in their projects with all the enthusiasm of companies sitting on an untapped gold mine.

Gap researched the baby boomer market for two years before launching Forth & Towne, and they hired their top designer for the division from Oscar de la Renta. Based on their market research, Gap executives divided Forth & Towne's offerings into four separate brands described as: tailored, office-friendly separates; sportswear; a trend-conscious line; and a collection that includes "embellished and decorative pieces for the individualist," whatever that means. Forth & Towne's clothing isn't available for pu
rchase online yet, but what we found by perusing the company's Web site looks dressier than what you would find at the Gap, and not as fashion-forward as Banana Republic. Is that what women want?

Time will tell. But one thing older shoppers apparently do have in common is a contentment with how they look right now. Talbot's conducted a study last year and found that the majority of older women are pleased with the way they look: 86 percent in the 35-to-44 age group said "they felt as good or better about how they look today" than they did in high school. For women aged 45 to 54, the number was 79 percent, while 76 percent of women 55 and older said they felt better about their current looks.

The Holy Grail for older women, according to the study, is - no surprise - perfect-fitting jeans. But retailers also know that women "of a certain age" aren't kidding themselves anymore about what they can wear. "Women realize, 'OK, there is a difference between me and Jessica Simpson, even with plastic surgery and a lot of exercise,'" says David Wolfe, creative director for the New York-based Doneger Group, the world's largest fashion consulting firm. "A woman of 60 in low-rise skinny jeans and a midriff-
baring top is usually not a pretty sight.

Women over 35 are also looking for clothes that fit bodies over 35. Forth & Towne's store designs include a circular "fitting salon" at the center of every store. Janeville clothing is designed with a mix-and-match mentality, with an emphasis on careful construction and good fit for boomer bodies. "In addition to putting a lot of thought into our sizing and cuts, we believe our Janeville customers will be pleasantly surprised by how much attention we've paid to the smallest details on each item of clothing
," Lisa Harper, Gymboree's chairman and CEO said in a company statement when Janeville was launched.

Martin + Osa will aim to lure mature shoppers with a travel-worn feel with wooden rafters, decked floors, a water bar and "a lighting system with varying intensities in different sections to create the impression of sunlight at different times of day," according to a company release. American Eagle executives also hope to locate the stores near "lifestyle" anchors popular with this same demographic, such as Williams-Sonoma and Pottery Barn. Both stores, of course, draw mature buyers flush with cash to spen
d.

Although the financial clout of boomers is the key reason retailers are going after them, fashion-industry insiders say the cyclical nature of trends and good old-fashioned timing also play a part. Wolfe says the fashion industry became youth-obsessed because of market forces, and those same market forces will now shift the focus again. "The industry has been predicated on the idea that youth leads fashion since the 1960s, when boomers took control of the world," he says. "Fashion changed. It got young and
it stayed young, despite the fact that boomers have gotten older. Now that some boomers are turning 60, that's a real wakeup call.

And fashion-industry analysts say fatigue plays a part, as well. Whether the rise of the likes of Paris Hilton shows just how low America's youth obsession has sunk, or whether American consumers are just in a better position to appreciate the natural beauty of a laugh line or two, customers of all ages are ready for something new. "The fashion pendulum has a rhythm to it, and we've gone as far as we can go with flashy, trashy young clothes," Wolfe said. "Designers are feeling like it is time to do somethi
ng different. And different now is serious and grown-up and sophisticated. Even young women think it's exciting." - MCT