Prices Drop on Fall Fashion

Cost-conscious SHOPPERS are turning more to their closets than to retail stores for fall wardrobe options this year. Sales at clothing stores slipped in June and July, and because many of this year's fashion trends, including leather motorcycle jackets and gray everything, were popular last year, too, August may not bring an improvement.

"There's just no reason to shop," says Kathryn Finney, the founder of BudgetFashionista.com.

Apparel retailers will be making a different case when they slash prices to lure shoppers back into their stores this month and into the fall.

"We're expecting a very promotional back-to-school and holiday shopping season," says Zoe Tan, an equity analyst who covers the apparel industry for Morningstar.

Earlier this year, stores had been offering fewer of the widespread, constant sales consumers enjoyed during the recession. That strategy worked to some degree during the spring, when consumers suffering from "frugal fatigue" started shopping again, says Tan. Now, shoppers are pulling back again, and retailers are facing a glut of summer inventory. "They're getting worried," Tan says.

Children's clothing manufacturer Carter's (CRI), for example, operates stores under its own name and OshKosh B'gosh. After cutting back on discounts and promotions during the second quarter, the company experienced its first quarterly decline in same-store sales in three years. "Retailers are seeing that consumers really react to promotions and the lack of them," Tan says. "They just aren't going into stores without incentive."

Before hitting the mall this year, watch for these eight types of sale opportunities:

Fall staple promotions

There's no reason to pay full price for the latest styles of fall staples like jeans, pants and boots. Stores are putting items on sale "pretty much right out of the gate," Finney says. Wait for a sale to buy. Lucky Brand jeans is taking $30 off most pairs through Aug. 29, and at Victoria's Secret, the code "VSBOOT" will take 20% off its boots through Sept. 16.

Flash sales

More retailers are likely to use one-day-only sales this fall, as companies gauge how deeply they need to discount, says Kathy Grannis, a spokeswoman for the National Retail Federation, an industry group. (Additional sales are sure to follow.) Macy's (M), for example, held a one-day-only sale on Aug. 21, offering an extra 50% off fashion-clearance items in its stores, plus online specials such as men's designer shirts for $15 (regularly $38 to $60) and an extra 25% discount on women's suits already marked down 25% to 40%.

Doubled-up discounts

Stores are more likely to offer targeted sales and broader percentage-off coupons this fall, Finney says. Kohl's (KSS) has a storewide sale and clearance event through Aug. 28 with discounts of up to 80%, plus a coupon code, "LOWPRICE15," for another 15% off. "You have to be careful," Finney says, adding that, with multiple discounts, "the math can be misleading." (The combined discounts from the Kohl's sale and coupon would yield a maximum discount of 83%.)

Localized coupons

Retailers are using their marketing budgets surgically. For example, Ann Taylor (ANN) has said it will push fall incentives in select urban markets, Tan says. Check store circulars on the retailer's site for several areas, especially if you plan to travel to different markets.

Group-buying sites

Gap (GPS) recently sold $50 store vouchers for $25 to users of Groupon.com. Like all Groupon deals, the vouchers had a shelf life of just 24 hours. The sale marked one of the first instances of a major retailer using a group-buying site, but others are likely to follow suit as sites become more popular, Grannis says.

Outlet mall deals

Surplus inventory and sluggish sales have trickled down to outlet malls, Finney says. Premium Outlets has a Labor Day sale with extra discounts on top of its usual 25% to 65% off. The Ann Klein store at Woodbury Commons in New York, for example, is taking another 25% off suit separates. However, not every outlet-mall deal is worth the trip. Shoppers should watch out for full-price outlet-only lines and other pitfalls.

Social media promotions

Retailers are increasingly interested in targeting customers through social networking sites such as Facebook, Twitter and Foursquare, Tan says. Connect with your favorite retailers to score better prices. Paul Frank, Gap, Ann Taylor and Diesel have offered discounts of up to 30% to shoppers who "check in" via location-based apps.

Mobile couponing

In addition to apps that help smartphone owners find coupons for nearby stores, some retailers have gone lower-tech with texted offers, Grannis says. DSW (DSW) periodically asks Facebook and Twitter followers to text a code word to a particular number. In exchange, they get an offer code than can be used online or shown to clerks at the register for extra savings.

INVESTOR CENTER

MARKETS:
Chart
TODAY
Portfolio Chart

RESEARCH STOCKS & FUNDS

Answer Engine
Find Answers to Life's Challenges  

Find solutions to this and many other problems using

Answer Engine from SmartMoney. 

Copyright 2012 Dow Jones & Company, Inc. All Rights Reserved
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit
www.djreprints.com.