Wet Seal Analysis
SITUATION ANALYSIS
Industry overview
Clothing Store
NAICS Code: 4481
SIC CODES: 5611, 5621, 5632, 5641, 5651, 5661, 5699
Companies in this industry operate physical retail establishments that sell clothing and accessories. Major companies include TJX Companies (TJ Maxx, Marshalls), Gap, and Limited Brands (all based in the US), along with Hennes & Mauritz (Sweden), Inditex 's Zara chain (Spain), and Arcadia Group 's Topshop (UK). The US clothing store industry includes about 100,000 stores with combined annual revenue of about $165 billion and is expected to grow at a low rate in the next two years. Key growth drivers include consumer spending levels and popular clothing styles.
Competitive Landscape
• Personal income and fashion trends drive demand for clothing. The profitability of individual companies depends heavily on effective merchandising and marketing. Large companies offer wide selections of clothing and have advantages in purchasing, distribution, and marketing. Small stores compete by offering unique merchandise, targeting a specific demographic, providing superior customer service, or serving a local market. The industry is concentrated: the 50 largest companies account for about 65 percent of industry revenue. Competition for the clothing store industry includes department stores, discount stores, and Internet and catalog retailers. • The clothing retail industry includes stores specializing in women 's clothing (50 percent of industry revenue) or men 's clothing (20 percent). Stores may also specialize in children 's clothing (nearly 10 percent of sales) or accessories.
Sales & Marketing
• Customer demographics vary according to an individual company 's strategy. Companies also consider customer lifestyle (casual, working professional, etc.) when developing marketing plans. Marketing and promotional vehicles include TV, print, and newspaper advertising; direct mail; catalogs; social media; and in-store events. Large chains may
Industry overview
Clothing Store
NAICS Code: 4481
SIC CODES: 5611, 5621, 5632, 5641, 5651, 5661, 5699
Companies in this industry operate physical retail establishments that sell clothing and accessories. Major companies include TJX Companies (TJ Maxx, Marshalls), Gap, and Limited Brands (all based in the US), along with Hennes & Mauritz (Sweden), Inditex 's Zara chain (Spain), and Arcadia Group 's Topshop (UK). The US clothing store industry includes about 100,000 stores with combined annual revenue of about $165 billion and is expected to grow at a low rate in the next two years. Key growth drivers include consumer spending levels and popular clothing styles.
Competitive Landscape
• Personal income and fashion trends drive demand for clothing. The profitability of individual companies depends heavily on effective merchandising and marketing. Large companies offer wide selections of clothing and have advantages in purchasing, distribution, and marketing. Small stores compete by offering unique merchandise, targeting a specific demographic, providing superior customer service, or serving a local market. The industry is concentrated: the 50 largest companies account for about 65 percent of industry revenue. Competition for the clothing store industry includes department stores, discount stores, and Internet and catalog retailers. • The clothing retail industry includes stores specializing in women 's clothing (50 percent of industry revenue) or men 's clothing (20 percent). Stores may also specialize in children 's clothing (nearly 10 percent of sales) or accessories.
Sales & Marketing
• Customer demographics vary according to an individual company 's strategy. Companies also consider customer lifestyle (casual, working professional, etc.) when developing marketing plans. Marketing and promotional vehicles include TV, print, and newspaper advertising; direct mail; catalogs; social media; and in-store events. Large chains may
Bibliography: -10-K yahoo finance http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=8505074-800-444701&type=sect&dcn=0001193125-12-132057 -First Research: http://0-mergent.firstresearch-learn.com.library.law.suffolk.edu/industry_detail.aspx?pid=182&chapter=1 -Wet Seal Posts Loss, Explores Options. WWD: Women 's Wear Daily [serial online]. August 22, 2012;204(39):2-1. Available from: Business Source Complete, Ipswich, MA. Accessed February 21, 2013. -Napolitano M. Wet Seal 's slick transformation. Logistics Management [serial online]. March 2012;51(3):46-49. Available from: Business Source Complete, Ipswich, MA. Accessed February 21, 2013. -Nichols S. Social Media, Mobile Payoff Continues for Wet Seal. Apparel Magazine [serial online]. April 2011;52(8):15. Available from: Business Source Complete, Ipswich, MA. Accessed February 21, 2013.