1941: Men's Apparel Industry

Despite the widespread influence of the nation's stupendous defense program, the year 1941 was a more stable year than 1940 for the men's apparel industry.

There were some price rises but fewer price fluctuations. With the exception of one brief trade lull during the early part of the year, sales volume forged ahead consistently. Neither prices nor sales reached anything like inflationary proportions and there was little semblance of panic in the market. On the whole, conditions in the men's apparel industry were less abnormal than in many other industries more vitally affected by the defense program.

With regard to individual items of merchandise, there have been some tense moments. The men's hat industry, dependent for so long on foreign furs, had its sources of supply suddenly cut off. Experiments were immediately carried on with wool felt and mixed fur and wool fibers. Considerable success has already been achieved with substitutions of this kind.

The shoe situation became rather acute when the army's abnormally heavy leather requirements had to be met quickly. Prices went up, deliveries were slowed down; some standardization took place. Toward the middle of the year the situation eased as production increased and the bulk of the army's requirements had been taken care of.

Though not nearly so influenced by the Japanese silk situation as the women's field, a certain amount of shifting from silks to Nylon, cotton and wool was required.

The slide-fastener industry, having spent years and a fortune convincing men that they should wear slide-fastened trousers, sweaters, jackets, coats, etc., faced a critical situation because metal materials were not available.

January and February brought volume increases to approximately 70 per cent of a representative group of men's apparel stores, reporting from all parts of the country. Prices for spring were up about five per cent and merchants adopted a policy of raising prices rather than lowering quality to maintain old price standards.

The one lull of the year came in March when 83 per cent of the stores reported a 15 per cent decline in volume under the same month in the previous year. This setback, however, was made up with interest during the month of April which showed an improvement of 43 per cent. Sales increased extraordinarily over the same month a year previous due in part to Easter, partly to favorable weather in most sections and partly to increased industrial activity.

Sales for May were up over 20 per cent and in June, due partly to successful Father's Day promotions the up-trend continued at about the same rate. July and August were good months and it was freely predicted that volume for the second half of the year would be substantially better. It was. Inventories were high, but not out of balance and no sharp increases in credit buying were reported.

For the first time in many years the Business Committee of the National Association of Retail Clothiers and Furnishers indicated 100 per cent that sales were better for September than during the same month in 1940. The average improvement was 20 per cent.

In November it was found that volume among men's apparel merchants for the year was running approximately 15 per cent ahead of 1940.

Christmas buying started earlier than usual, possibly due to the fact that the public as well as the merchants were fearful of impending shortages.

Most confusing problem of the year proved to be the Wool Labeling Act, which went into effect July 14. Federal Trade Commission rules required merchants not only to have new garments properly labeled in accordance with the Act but to label all merchandise in stock, regardless of how long it had been on their shelves.

Unfamiliar with the fiber content of old goods, merchants called on their sources of supply. Many of the makers were unable to provide adequate information and in the final analysis the stores were forced to either label the garments 'Fiber Content Unknown' or to mark them 'Reserved for Intrastate Commerce' so that clerks would not ship the goods outside of the state, thereby clearly violating the provisions of the Act.

Wool growers and consumer groups hailed the Act as a piece of progressive legislation; manufacturers and retailers for the most part were generally opposed to it on the grounds that garments would henceforth be judged by their fiber content alone — a poor yardstick for measuring quality in men's apparel.

Also confusing was the 10 per cent Retailer's Excise Tax on such items as jewelry and furs. Men's apparel stores were uncertain as to when and when not to charge the tax or pay it. Rules from the Bureau of Internal Revenue, though somewhat late, helped to clarify the problem.

In May, apparel merchants were disturbed by a statement from Price Administrator Leon Henderson to the effect that a ceiling on consumer prices, especially in food and clothing, would be ordered if necessary. They tried to figure out how to maintain both quality and price in the face of rising costs. The manufacturers, at the same time were being forced to make some increases because of advancing labor as well as material costs.

The stores were also concerned about government action to restrict credit business, as it was estimated that approximately one-fourth of the merchant's volume would be lost if he were to demand a 50 per cent down payment with all purchases.

Small men's apparel stores throughout the country — those with volume under $100,000 had outmaneuvered the larger stores; had shown a better profit and a cleaner record at the close of the year. Larger stores had made an effort to hedge against rising prices that failed to rise as quickly as they had expected. Stocks were consequently heavier than they should have been. Mark-up among the small volume merchants was maintained at about the 1940 level and expenses were actually cut. On the other hand, mark-up of the larger stores slipped off from 38.1 per cent to 36.9 per cent; expenses were about the same and net profit was consequently reduced.

All things considered, 1941 was a most satisfactory year for men's apparel stores in the smaller volume group and would have been equally satisfactory for the larger stores had they been able to maintain mark-up and speed turnover.