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Weary of old wardrobes, women buying clothes again

(Agencies)
Updated: 2009-11-27 09:02

J.C. Penney Chief Executive Myron Ullman told analysts earlier this month that women were increasingly buying clothes.

"While the environment is still tough, the third quarter also reflects something very important -- the resilience and continuing growing appeal of our women's apparel business," he said.

Some retailers, such as Urban Outfitters Inc's Anthropologie chain and J Crew Group Inc are already on a roll, having posted higher sales in recent quarters, fueled by their differentiated products and loyal customer base.

At the same time, others are fixing self-inflicted merchandise issues that have long dogged them. Chico's on Wednesday posted better-than-expected profit and a 13 percent sales rise in what one analyst deemed a "blowout quarter."

The company has reversed a longtime sales decline by making its clothing less matronly and trying to appeal to women with style.

Moreover, a focus on women between the ages of 40 and 50 is helping Chico's, Walters said. Older baby-boomers age 60 and above, whose retirement savings have been hurt by the downturn, are still not in a position to spend freely.

Despite the hints of a comeback in women's apparel sales, the big unknown is what happens in January.

"That's the big question -- that's what investors are starting to grapple with. Nobody really knows what the demand outlook is for 2010," said Yruma.

And if stores fail to offer compelling spring merchandise in the winter months after the holidays, women could easily return to their "non-shopping mode," Walters said. She expects the January-to-March period to be "pretty tough."

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