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By Lisa Biank Fasig HINGHAM, MASS. - The Talbots Woman has opened her red door to many new ideas over her 55 years — plus sizes, accessories, even children. Grab your purses. Talbots, the chain known for its traditional women's separates, this week is sending 750,000 men's catalogs on tour. Next year, the specialty retailer will follow up with six Talbots Mens stores — three in the spring, and three in the fall. Plaid skirt, meet striped tie. It is a pairing that could no longer be avoided, said Talbots Inc. chairman, president and chief executive officer Arnold Zetcher. Modeling one of his company's new shirts (blue) and ties (red with blue stripes), he said demand has dictated there be a Talbots Man. "It's probably the number-one thing customers have been asking us for," said Zetcher, who relishes the chance to finally test what he sells. "We wouldn't be doing this if we thought it was just going to be a handful of stores." But as Talbots launches into menswear - the most revolutionary addition since its founding in 1947 — some wonder if the gal's got the game to succeed in the tricky, troubled men's clothing arena. Casual dress and the economy have for years stymied the industry, which in turn has struggled to find exactly what its shoppers want. And then there is the girdle hurdle: convincing men to buy what has traditionally been known as a women's label. "I think the issue is, will men buy into the Talbots brand after being a women's brand so long?" said Wendy Liebmann, president of the New York consulting firm WSL Strategic Retail. Her guess? On a chance scale of one to 10, Liebmann gives Talbots Mens a seven. "If they do it cautiously." Still, Talbots' expansion should not be surprising. Retailers look for new ways to grow their business as regularly as pleated skirts go in and out of style. By expanding into men's, Talbots is vying for a bigger chunk of the household wallet, particularly in markets where it already succeeds as a women's merchant. The chain posts an average store transaction of $112, with catalog receipts roughly 20 percent higher. Talbots appears to aim for similar receipts with its men's lines. The first catalogs, at 24 pages, include styles that mirror those of the Talbots Woman, in look and price. Its classically handsome models lounge in argyle sweaters ($95), three-button blazers in wool and cashmere ($395) and cotton dress shirts ($75). As with its women's lines, Talbots Mens specializes in separates, not suits. Talbots is clearly aiming for the male counterpart to its Talbots Woman, typically a college-educated professional, ages 35 to 55, who is married and living in the suburbs. She expects apparel that is classic in style, not too trendy, and of good quality. It has been Talbots' adherence to this image that has enabled it to post consistently higher sales and earnings. The retailer last year reported profits of $127 million on sales of $1.61 billion. That compares with 2000 earnings of $115 million on sales of $1.59 billion. "You can count on Talbots, they're very reliable, they're very consistent," said Cynthia Cohen, president of Strategic Mindshare, a Miami-based retail consultant. "They stay true to their brand. They offer consistent quality, consistent sizing." Talbots' evenness stems from its catalog business, which maintains consistency in order to minimize returns. The company, which will operate 868 stores by the end of this year, mails more than 50 million catalogs annually (that would include booklets for women's, accessories and kids). This experience puts Talbots at an advantage as it expands into men's clothes, said Bob Wientzen, president and chief executive of the Direct Marketing Association. "Talbots was one of the first companies to build stores where they had catalog customers," Wientzen said. "Now they seem to be trying to do the same thing with the men's catalog, which is really leveraging the infrastructure they have." But Talbots' identity and success as a women's retailer has some industry observers wondering: could it walk the walk in trousers? Will men wear the same brand as their wives and mothers? Zetcher's response is, Why not? Other designers have done it with varying levels of success — Ralph Lauren, Liz Claiborne, J. Crew and Eddie Bauer, for example. A bigger issue, retail experts say, is one of succeeding in a troubled industry. Sales of men's apparel declined 7 percent last year, to $50.9 billion from $54.8 billion in 2000, according to the market information company NPD Group. For the first half of this year, men's sales inched to $22.8 billion from $22.7 billion in the same period a year ago, although the actual number of items purchased slipped to 1.9 billion from 1.97 billion. This may reflect price cutting to increase sales. "I think a lot of [retailers] have been having trouble predicting what fashions will be wanted by men," said Rozilyn Bryant, an analyst covering Talbots for Morningstar Inc. "Men are the least likely to buy clothes when the economy is in trouble." This hesitancy to spend has bled into the women's market. While Talbots posted higher earnings and sales last year, its sales for the first half of this year have slipped to $761.7 million, from $785.4 million a year before. Thursday, Talbots said second-half profit will be less than forecast. In a statement, it said profit in the third quarter ending Nov. 2 is expected to rise to 59 cents to 61 cents, but the average estimate of analysts surveyed by Thomson/First Call was 70 cents. Fourth-quarter profit may fall to as low as 48 cents, the company said. First Call was expecting 62 cents. Zetcher, who has headed Talbots since 1988, has heard all of these issues before. He listens to them with patience, and then responds with the logic of a man truly smitten by, and convinced of, his plan. "There are people above us and people below us but I don't think there's anybody that's doing it the way that we intend to do it," he said. "Not just in the product, but in the service levels and other things." Talbots will ease into its men's business as if the venture were a pair of kidskin loafers. The first catalogs will be small, at 24 pages (its women's catalogs have a broader selection of styles and can run up to 175 pages). And at 750,000, the first men's catalog has a limited circulation, mostly to Talbots' existing, top-spending customers (meaning women). If anything, the first catalog will be used more as an invitation for customer feedback, Zetcher said. Likewise, Talbots will open the stores slowly — just six next year and six to nine in 2004. Locations have not been decided. If the stores do well, a more significant roll-out will follow in 2005. Zetcher is giving the project at least four years to prove itself, and plans on more than 100 stores. "We're not looking for all of them to necessarily be home runs," the CEO said. "We're looking to learn from them." It is a plan that makes careful use of shareholder money. If Talbots strikes out on the venture, the financial loss will be too small to register. If the retailer does hit the skin off the ball, the gains won't show either. As for getting people into the store, Zetcher has a plan to get around declining male spending. He figures from company research that 60 percent of his first customers will be women. "It's good starting point for us. Those customers know us and they have an expectation. The hope is that they will buy it and the men will then come." Some industry experts suggest it won't be as hard as others might think. The reason? Tighter employment numbers have forced some men to become more competitive in the office. That means looking better. "I think that that is a result of things like the collapse of the dot-coms, which was generally a casual business," said Gary Wright, president of Denver-based retail consultant group G.A. Wright Inc. "Now all of a sudden men are looking for a way to differentiate themselves at the workplace." Indeed, more and more stores are crossing over to menswear, said Wientzen, from the Direct Marketers Association. "I was in a Talbots a couple of weeks ago with my wife. So I have a positive view of Talbots from a style standpoint," he said. Still, Talbots is not taking any chances. The company has spent several years researching its new venture, and Zetcher has personally been involved in many of the details, from the new logo colors (gray on gray) to the ribbons on the gift boxes (burgundy). He strives to emulate the independent clothing stores where he has done much of his own shopping. There will be lots of dark wood and carpeting, and a larger, "more solid-looking" entry. Read: no red door. The final product will emerge from a carefully selected staff, none of whom are involved in the Talbots women's business. All clothes are designed by Talbots employees in New York. Zetcher won't even allow the men's clothes to be manufactured in the same plants as his women's lines, if the facilities do not have menswear experience. "We do not use the weather as an excuse. We do not use the economy as an excuse," Zetcher said. "If the business is good, basically we made it good. If the business is bad, we made it bad." Sitting in his office, surrounded by Talbots Mens boxes and plans, in his Talbots Mens clothes, Zetcher concedes how exciting the project is for him and other men in the company. He clearly wants Talbots Mens to do well. But for the next few years, at least, the Talbots Man will be a small voice in the business. He will have to prove himself. After all, it is still the Talbots Woman who brings home the bacon. Lisa Fasig covers retail and consumer behavior. She can be contacted at lfasig@projo.com. |
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