Discount cycling apparel

Most consumers choose activewear. In fact, 87% purchase the category for street and the playing field.

Ubiquitous is defined by Webster's as "being everywhere ... omnipresent." It's also a word that can be accurately used to describe activewear.

Purchased by nearly nine out of 10 adult Americans, according to a nationally representative Gallup study, activewear makes up an essential portion of the consumer wardrobe. It encompasses a wide range of merchandise--from T-shirts to tennis shorts.

Core retail shoppers are most likely to buy activewear. Nearly 94 percent of Baby Boomers, who are 35 to 49, purchase activewear--as workout wear or as leisure attire. And a nearly equal percentage, 93 percent, of Baby Busters in the 25 to 34 age group also purchase this apparel category.

"It's important in both spring and fall. We like to think of it as one of our strengths," says John Lupo, senior vice president, general merchandise manager at Wal-Mart.

Activewear, once strictly thought of as suitable for sports-related endeavors, has, of course, become appropriate for any number of leisure and work-related activities. And the largest percentage of shoppers, 44 percent, purchase the category for street and the playing field. Only 5 percent of those queried say that they buy activewear strictly for a specific sport. Thirty-eight percent purchase active items for "non-sports related" activities only.

Fleece is top of mind when it comes to activewear. For the third consecutive year, consumers name sweatshirts as the activewear items they ar most likely to buy during the next 12 months. Discount store shoppers are even more likely to purchase a sweatshirt during the next year than the total activewear purchasing population. Nearly 21 percent of those who usually purchase activewear at discount stores say they're most likely to buy a sweatshirt in the next year, while 18 percent of the total respondents answer in kind. Sweatpants remain strong contenders for consumer spending as well. Thirteen percent of activewear purchasers say they'll most likely buy new sweatpants during the next year.

Fleece separates represent a core activewear category, but so do sets, according to the study, which was fielded in August. Another 13 percent of activewear buyers say they'll most likely buy matching fleece tops and bottoms during the next 12 months. Sixteen percent of the discount store shoppers will most likely buy sweat sets.

Most mass merchants have a broad assortment of both basic and licensed or logoed fleece. They recognize it as important to their customers.

"Fleece is one of the areas that we are bringing into the concept of category dominance," says vice president, divisional merchandise manager Charles Langenberg, one of the key players on Pamida's new apparel team. "We are going to continue with fleece year-round now. We hadn't in the past, but we believe it will produce upside business," he says, noting that tops fashioned from the fabric have customer appeal even in the warmer months.

The price of a mass market sweatshirt--even a nine-ounce garment that typically sells for $9 or $10--must appear to be a bargain to most shoppers. According to the Gallup study, consumers on average expect to pay about $15 for an unembellished sweatshirt; discount store shoppers, just under $13.

They say they'll pay a lot more for embellished--with a team's insignia or licensed character, for instance--fleece tops.

"It's a big part of the business. With entertainment, you have to react to whatever is hot out there. For the fall, it's Space Jam and 101 Dalmatians. In sports right now the NFL is the hottest of all," says Lupo.

Graphics apparently mean the most to young shoppers. For example, 18- to 24-year-olds on average expect to pay $30.50 for an embellished sweatshirt. Discount shoppers of all age groups, however, say they'll probably spend considerably less. The mean expected price this group plans to shell out at the register is $22 and change.

Consumers expect to pay about the same for basic sweatpants as sweatshirts; the mean survey price is $15.63.

Many mass merchants have been trading up in activewear quality to better satisfy their customers. But the price question looms. "Will shoppers be willing to pay more?" they ask. Survey results indicate that in T-shirts, like sweatshirts, price expectations are at least somewhat higher than actual mass market retails.

As a group, consumers on average expect to pay slightly under $10 ($9.74) for an unembellished activewear T-shirt. Those who usually buy activewear in discount stores say that on average they expect to spend $8.37.

Activewear shoppers expect to pay more than $17 for T-shirts sporting logos or other designs. Discount store shoppers have price expectations in the $15 to $16 range.

The price issue aside, it is important that retailers carry both plain and embellished activewear. About 45 percent of respondents say they'll buy activewear with a design during the next 12 months; 51 percent will buy items without the added embellishment. Interestingly, few--only 3 percent--intend to purchase both.

Where do shoppers usually buy their preferred activewear items? The survey indicates that they'll choose multiple outlets. Department stores were chosen by 55 percent of the respondents, while discount stores racked up 43 percentage points. Women are particularly drawn toward department stores for activewear needs; 60 percent say they usually shop this traditional venue for the category.

But mass merchants should be cheered by the news that the focus of their marketing and merchandising efforts--consumers that range in age from 25 to 49--are most likely to usually shop for activewear in discount stores. Fifty percent of the 25-to 34-year-olds questioned and 47 percent who are 35 to 49 usually shop for activewear in discount stores. Younger customers, 18 to 24, remain a mass market weakness; only 34 percent usually shop for activewear at discounters.

As might be expected, sporting goods and sports specialty stores have strong activewear allure. Three out of 10 of the survey participants say that they usually shop in these operations. Nearly 17 percent choose Sears, and 16 percent usually purchase activewear by mail.

Most retailers and manufacturers agree that good in-store merchandising can help sales, and the study confirms its importance. Nearly one-quarter of the participants say that retail displays affected their purchasing decisions the last time they bought activewear. While the majority--58 percent--say display had little effect on their shopping behavior, it would be foolish to ignore a strong base of customers who are moved by proper fixturing and merchandise positioning.

It would also be less than optimal to ignore the continued consumer shift toward natural fibers--cotton content in particular. Despite the fact that microfibers are coming on strong in sports-oriented activewear, nearly two-thirds of the study participants contend that cotton content is important in making activewear purchasing decisions. Only 16 percent say cotton is unimportant.

Activewear is a staple in today's consumer wardrobe. Marketers who can take advantage of its multi-faceted appeal will be able to stay ahead in the increasingly competitive apparel field.

Consumers choose discount and department stores

[TABULAR DATA OMITTED]

Fourty-four percent will buy fleece

(which activewear items are you most likely to buy in the next 12 months?)

Sweatshirt 18% Shorts 16% T-Shirt 14% SweatSet(*) 13% Slacks 13% Sweatpants 13% Shirt 10% Jogging/running suit 5% Warm-up jacket 4% Bodywear/aerobicswear 3% Cycling shorts/pants 2% Other/don't know 31%

(*) Matching fleece tap and bottom.

Source: The Gallup Organization for AM

National Industry Reports are published by Apparel Merchandising, a division of Lebhar-Friedman Inc. These reports take periodic, analytical looks at important product categories.

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