Last updated: Tuesday, 2 June 2009, 19:35 GMT
Big Retailers Need to Open their Eyes to New Sourcing Opportunities in Below Who
I was talking to our Senior Vice President, David Lapidos, this morning, and he was in complete disbelief about a large retailer who would not give out the name of their CMO. As a retired off price specialist with over 30 years of experience in the trade, he recalled to me how - back in the day when New York was full of retailers - many of them would have open hours in which the vendors would come in and present their goods, and there were always buyers there to source. He was reminded of how T.J. Maxx ALWAYS returns phone calls from prospective vendors, even if it takes them a week. But this Chicago-based retailer who shall remain nameless of course, has a policy in which they do not give out employee names.
Perhaps it's understandable, as a big company like that can find sources all over the world. I remember when our parent company was working on an event in the packaging industry, our association partner was telling us why the Krafts of the world would not jump at the chance of sourcing vendors at our event. He said, "If Kraft needs packaging vendors, their guy picks up the phone, and as soon as he hangs up the vendor reps are waiting in the lobby to make a pitch."
This could very likely be the case in packaging, where there's a select group of vendors in the world who can service a big player's needs. But in the world of apparel retail, the Giants are doing themselves a disservice by not providing a venue for wholesalers to show their wares - especially off price specialists who carry the hidden treasures that smart buyers find at our Las Vegas Fashion Week shows. This is evidenced by the direct relationship between the large retailers who went belly up in the last year, as well as the ones who showed 1st quarter losses in 2009, and the fact that none of these companies sent buyers to the Off Price Shows. Would it be too much of an "I told you so" to these out of work merchandisers if I mentioned that the big guys who did well at our February 2009 Off Price Show found great deals on products that our exhibitors liquidated from their store closings?
Perhaps it's far better and more tactful to emphasize another direct relationship - between the off price and discount retailers who have reported positive numbers in the last two years, and the fact that they send between 10-20 buyers to each Off Price Show.
In our June enewsletter, there is a jobber profile on a women's apparel specialist that's a profit builder for the boutiques and small chains. They are out of a town in South Carolina with less than 1,500 people living there, so I wonder if they would show up on the radar of these big box retailers, and their bureaucratic blinders. It's no bother to our exhibitor, whose name is K&C Clothing, because they prefer their niche of serving the little guys with quality products at excellent margins.
So for all the smaller and mid-sized retailers - whether they are high-end boutiques or discount stores - don't make the same mistake that certain big guys are making. Below wholesale clothing, below wholesale jewelry, below wholesale accessories, and below wholesale shoes includes popular brands and top designer products as well as the lower price point goods.
Come see us in Las Vegas on August 28 - September 1 at The Sands Expo & Convention Center, and see why the savvyiest retail buyers come early and often. Call me at 262.754.6910 or dbrowne@offpriceshow.com if there are specific items you are looking for in advance of the show. We'll be happy to help - and we'll give you all the contact details!