RETAIL PROFILE

Outlets fit Haggarlike a good suit

Haggar Clothing Co. is the nation's No. 1 maker of men's dress pants and No. 2 maker of men'scasual pants.

The size of the space is important, too, Randallsaid. Haggar's 60 U.S. outlets are primarily 2,800 sfto 3,000 sf, and its two Canadian units are 3,500 sf.

The company's expansion plans call foropening 10 to 15 new oudet stores annually inthe U.S. through 2017, and two to three storesannually over the next four years throughoutCanada. By the end of 2013, Haggar will have66 outlet stores.

Haggar Clothing Co. today holds the No.1 market position in men's dress pants in theUnited States, as well as the No. 2 share inmen's casual pants. In fact, Haggar is some-what synonymous with men's casualwear andis credited with coining the term "slacks" in1938. The term defined a new apparel categorymade especially for non-working hours, or"slack" time.

Today, with its Haggar and LK Life Khakibrands, the company continues to celebrateclassic American style, but also offers a mod-ern twist, giving its customers the opportunityto mix and match elements of their wardrobewith confidence.

Haggar wants to control its brand withinits four walls and give shoppers a pleasurableshopping experience, Randall said. Its newoudet concept employs a combination offocal walls and floor-to-ceiling demising wallsto reinforce the sense of rooms without hardbarriers in place. The interior design emphasiz-es the company's main lifestyles, which includecasualwear, golf attire and tailored dress wear.

"The fitting-room area is ded to a seating

The 87-year-old apparelcompany sees plenty ofopportunity and growthpotential in today'sgrowing outlet sector.By B.C. MANIONContributing Writer

HAGGAR CLOTHING CO. is buiUsh onoudets.

The company, which has been making qual-ity men's clothing since 1926, already has 62oudet units and ideally would like to doublethat figure over time, said Jackie Randall,VP-retail for the brand that prides itself oninnovadon, quality and craftsmanship.

"Oudets are a very big growth market," Ran-dall said, adding that the Dallas-based compa-ny is choosy about new outlet locadons. That'swhy it keeps three Ts top of mind: Tourism,Tenants and Traffic.

"High tourism in the marketplace is animportant factor in selecting a site for Hag-gar," she said. But within a center, "a locadonbetween major anchors to drive traffic in frontof the lease line is cridcal."

Thus, the lineup and locadon of other ten-ants in reladon to Haggar is so vital that nothaving the right space in a center can be adeal-breaker.

Haggar ClothingCompany Time-Line

1926: Haggar Clothing Company is foundedLebanese immigrant Joseph Marion Haggar in aone-room office in Dallas.

^ 1 9 2 9 ; The company occupies two floors andquickly grows to 500 employees producing more

I t h a n 75,000 pairs of pants annually.

I 1933; Haggar changes manufacturing methods jto follow Henry Ford's Straight Line Production

I method. )

1938: Haggar goes national, employing anational sales force and running a national adcampaign.

( 1940: Haggar creates the first pre-cuffed pants. J

1942: Haggar factories are operating 24 hours aday supplying clothing for the U.S. military. By theend of the war, more than 10 million garmentswere produced in Haggar factories. By the endof the decade, Haggar had become the largestproducer and marketer of slacks in the world. /

1950S: Haggar advertises nationally in both tele-vision and print, including Life, Esquire, Collier's,Men's Wear Daily and Daily News Record. Thecompany's ad in Life magazine features the HaggarHarmony Chart, which shows men how to mix andmatch shirts and jackets with Haggar slacks.

1952: Haggar introduces Forever Prest, theforerunner of wrinkle-free pants. Advertisingheavily in such publications as Sport and SportsIllustrated, the company began to associate itsname with sports heroes like Mickey Mantle,Bobby Lane and Arnold Palmer.

1956 and I960 : Haggar supplies slacks for theU.S. Olympic teams, beginning an associationwith sports that led to its current-day sponsor-ships of the gold enshrinee jacket for the ProFootball Hall of Fame and the navy enshrineejacket for the Hockey Hall of Fame.

[ 1 9 6 3 : Haggar becomes an early sponsor ofI A B C ' S "Wide World of Sports."

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5 0 VALUE RETAIL NEWS OCTOBER 2013

( 1968: Haggar conceives and sponsors a new TVI show, "This Week in the NFL."

1970s: Haggar beconnes the No. 1 pants brandin the country. In the late '70s, Haggar beginsnnanufacturing sport coats, vests and men'sCustom Fit suits. Launching a new category - suitseparates.

1977-78; Haggar begins making the ProFootball Hall of Fame gold jackets after the origi-nal tailor retired. J.M. Haggar Jr and his brotherEd Haggar had a small ownership in the MiamiDolphins with founding partners Danny Thomasand Joe Robbie. Haggar Clothing Company isnow on its third version of the jacket, making themost recent style update in 2012.

1980s: Haggar is among the first apparel manuAfacturers to adopt EDI quick-response inventoryreplenishment and UPC codes on merchandise tags J

^9S7: Haggar invents and patents the "SizeStrip" sticker, used by most pants brands today

I to identify size and fit on folded bottoms.

I 1990s: Haggar introduces 100 percent cotton )yjA/rinkie-free pants. J

1992: Haggar goes public, trading on theNASDAQ exchange.

I 1993: The first Haggar outlet store opens on\ A p r i l 23 in Hillsboro, Texas.

2000S: Haggar begins a campaign to create'ecofriendly apparel made from recycled orrenewable fibers.

I 2005: Haggar is acquired by private equityAfirm Perseus, Infinity Associates and Symphony

^Holdings for $212 million. J

/^2009: Haggar's E-CLO and LK Life Khaki lines^are documented to have upcycled more than 80

I million water bottles.

2010: Annual sales are estimated at $300 million. J

Haggar is the No. 1 maker of dress\pants and the No. 2 maker of men's casual

I pants, behind Levi's Dockers. J

Haggar's Life Khaki line is made from recycledarea to build overall shop time for our custom-ers the whole area is designed to reinforce thewarmth and character of the store," Randall said.

The cash wrap and back wall offer "a finaltouch point for the customer, bringing to-gether all the details and finishes of the store'sfocal elements along with an understated Hag-gar logo," she said. "We hope that the sum ofall these experiences will leave a lasting impres-sion with the consumer."

Haggar understands that shoppers want aninviting environment, but the company knowsthat consumers also want good value, qualityand selection.

The outlet stores carry key pants selections,including Work to Weekend khakis and Cool18 performance pants. About 90 percent ofthe outlet inventory is current-year product,with 40 percent made exclusively for outlet.About 10 percent of Haggar outlet inventoryis seasonal liquidation, Randall said.

Price-points at Haggar outlets range from$4 for socks, to $30 for khaki pants, to $99 to$129 for suit separates. The average discount isabout 60 percent off manufacturer-suggestedretail prices, she said.

Haggar's marketing efforts are evolvingtoward more email and less direct mail. The

water bottles.company has a robust customer relationsmanagement system, allowing it to be in theknow about its customers' shopping habitsand preferences. Haggar uses that informa-tion to reach out to consumers with relevantoffers.

Although privately held Haggar doesn'tdisclose sales figures, Randall characterized theoutlet chain as a "very profitable business forus." She also said the company has had posi-tive comparable sales for the past five years.Although Haggar doesn't see retail sensitiv-ity as a big issue, the company is still learningabout the differences between consumers whocross-shop the company's different distributionchannels, she said.

As Haggar plans outlet expansion, the com-pany is aware of the sector's great potential and its challenges. As more traditional retailersenter the outlet arena, Randall said, the compe-tition for great sites in great centers heats up.But Haggar, always moving forward, is testingthe fall-price waters by opening its first non-outlet unit in 2015. Haggar also plans to openfull-price stores in the UK in the future. Q

For leasing infornnation, contact Scott Wren,Director of Real Estate, Haggar Direct, Inc.;scott.wrenOhaggar.conn, (2U) 956-^87.

Haggar's new store concept features focal walls and the company's main lifest}'le lines.

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