Multi-packs propel panties biz - sales of ladies underwear at discount stores

Multi-Packs Propel Panties Biz

NEW YORK -- The burgeoning branded ladies' panties business will heat up this summer with Fruit of the Loom's May 25 shipment of a hanging six-pack.

Fruit of the Loom joins Gitano, another major player in this segment, with a six-unit package for the first time.

Gitano's six-panty-pack is a box that has been used principally during seasonal promotion periods, like holiday.

While Gitano offers six-packs in several different styles, including string bikinis, Fruit of the Loom will be limiting its initial introduction to its most popular basic style in six packs of all white or all pastel. The bikini and high-thigh styles will not be available in six packs.

Fruit of the Loom is selling the packs--whether white or pastel--for $5.56. Gitano sells its basic style in white for $5.50.

"The retailer is devoting more and more space to branded ladies' panty packs," said Jules Shemin, executive vice president of sales for Fruit of the Loom. "We've had six-packs in men's, boys' and girls', so we figured the time has come to offer it in ladies' as well."

Shemin said he expects to ship at least 3 million to 4 million dozens before the end of the year, or between 12 million and 16 million packages.

He added that he's projecting a 20 percent additional dozen volume incremental annualized increase in ladies' panties for his discounter customers.

Shemin said that the discounter has been moving away from private label panties, realizing that what the consumer wants in this commodity segment are recognizable brand names.

Discounters back up the statement.

"We've been reducing our private label offerings in the panties area and have been doing significantly improved business with Gitano and Fruit of the Loom multi-packs," said Stu Kessler, vp, general merchandise manager, ladies' and cosmetics at Ames Department Stores, echoing other discounters.

Kessler, who said Ames will have the new Fruit of the Loom panties six-pack "in at least 25 Ames stores by June," said the consumer has been responding to the "price/value connotation the brands offer, along with the rebate programs and the advertising."

He added, "multi-packs--in hosiery and socks as well-- have added a very exciting dimension to this business, and we expect sales to improve even more over the next 12 to 18 months."

Joe Ettore, senior vice president, gmm of all soft lines at Jamesway, said he's merchandising his ladies' panties segment in a more "free-form layout" and is increasing his mix of brands.

"Fruit, Gitano and Hanes Her Way are all doing great for us," said Ettore.

Fruit of the Loom will also be offering a manufacturer's rebate during the July 15 to Sept. 17 back-to-school period. On a three-pack, consumers will receive a $1 check back in the mail, and with a six-pack, $2, said Shemin.

PHOTO : Fruit of the Loom's new ladies' panties six-pack, shipping to discounters on May 25.

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