1942: Men's Apparel Industry

Effect of the War.

Fulfilling its highly essential part in a war economy, the men's apparel industry since Pearl Harbor has neither suffered the deprivations meted out to the hard goods group nor enjoyed the privileges of the more vital defense industries. Roughly, the retail branch of the industry lost a fourth of its trade to the armed forces. This is not surprising when we consider the tremendous effort made during the past decade to create dress consciousness among younger men. Most of those men are now in uniform.

Yet this trend does not necessarily represent a comparable loss of volume. Most apparel merchants agree that a large part of it has been made up through the increased purchasing of dress apparel by industrial workers; through a sharp increase in the demand for work clothing; through a strengthening of the demand for women's tailored apparel; through the sale of numerous gifts for men in the service.

The war has brought a more favorable balance of trade to some industries than to others. A recent survey made by the National Association of Retail Clothiers and Furnishers would indicate that approximately 12 per cent of the member stores are located in army camp areas; 14 per cent in civilian industrial (non-defense) areas; 28 per cent in defense plant areas; 38 per cent in farm areas; 8 per cent in other types of areas. This is probably typical of the industry as a whole and it can be readily seen how directly the type of locality can affect the nature and volume of apparel sales.

Few industries have been so widely influenced by the war as the men's apparel group. With an unprecedented withdrawal of wool from the domestic market by the army, the need for conservation has brought sharp curtailments and substitute fabrics. That has probably been the most significant single factor.

The control of retail credit by the Government has had a tremendous influence in an industry that was learning to count more and more upon the partial payment plan and long-term credits. Now that the reins have been tightened on thirty-day charges, with complete payment due by the tenth of the second month following the date of purchase, the thirty-day account is used less and the various payment plans and lay-away plans are employed more.

There were those who feared that the war economy would mean the end of style in the men's apparel industry. Actually this has not been the case, for the would style denotes change and there has been plenty of that during the past twelve months, even though most of it was effected by Government decree. The greatest opposition came from the public with the passing of trouser cuffs, a superfluous detail that many men held to as tenaciously as life itself.

Though heavy advance buying of apparel both by the retailer and the public has tended to delay radical style departures, such forced changes as beltless coats, the passing of double-breasted suits with vests, trousers without pleats, shorter jackets, and less 'sweep' in overcoats and topcoats will tend to make the older garments decidedly outmoded in a short time.

Shortages in other major industries are having an immediate influence on the men's apparel field. The withdrawal of steel for civilian use means fewer zippers and more buttons. The rubber shortage means less elastic in garters and suspenders; fewer elastic waistbands and less rubber-topped hose. Silk disappears in men's wear as it does in women's. Nylon, a newcomer in the field, practically goes out of circulation. A shortage of fuel brings a demand for more long underwear; more wool. Gasoline rationing means heavier outer apparel.

As the war progresses the average men's apparel merchant finds himself working harder for a narrower margin of profit. With his younger salesmen going off to war and the older men seeking defense jobs he finds himself in a tight labor squeeze. His overhead rises while 'ceiling prices' limit income and in many instances he is also the victim of an economic squeeze.

All of this has tended to limit the amount of service the average store is able to extend to its customers and the 'services' regulation recently issued by the OPA was not unwelcome. Special services once gave the exclusive men's apparel store an edge over price competition, but faced with a battle for his very existence, the merchant feels he can drop some of these services for the duration without seriously endangering his future.

Price Ceilings.

Price ceilings brought many a headache to the industry. Some of these were controlled by revisions that corrected obvious inequalities; others were more serious. The rules that were set up to control prices in the North would not work when applied to the South where different climates are responsible for entirely different buying habits. It was also true that March prices provided an adequate standard only for many items that were seldom if ever offered to the public during this winter month. Most unfair in the OPA strategy appeared to be the penalty inflicted on the merchant who, in compliance with the Government request, had increased his prices only when forced to by increased replacement costs. This merchant found his March prices less attractive than the merchant who had pushed his prices up with every market change.

Sales of the Year.

The year 1941 was a heavy buying year; on the whole a good volume year for the men's apparel merchant, it closed with a flourish and paved the way for the industry's first war year. A considerable amount of unseasonable buying was practised by the public during the first month of 1942, a practice that was retarded slightly in February. The average improvement for January over the same month a year previous was better than 50 per cent, a record that can be attributed of course to public fears of consumer goods shortages.

During the month of March most men's apparel merchants had more business than they could handle or wanted. In many parts of the country they actually joined in cooperative campaigns to curb panic buying following the Government's first wool decree. Much of this buying was caused by scare newspaper and radio publicity about wool shortages, cuffless trousers, etc.

Regular summer sales were abandoned by most stores as volume during the middle of the year continued to climb and merchandise was not too plentiful. In May the stores reported that for the first half of 1942 unit sales were running behind; dollar volume ahead. And for the first time during the year a sharp decline in sales was recorded. Volume revived in June with substantial Father's Day trade recorded by most stores. July showed more trade declines than improvements but in August the trend started upward again, and continued into September and October.

While business was in no way spectacular during the tail-end of the year it was substantially better than most merchants had predicted or hoped for and was improved by an early Christmas buying trend that helped spread volume so that it could be handled without too much pressure on limited personnel.

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.

1940: Men's Apparel Industry

In the Men's Apparel Industry, 1940 was a swiftly moving year crowded with novel situations that had to be met and solved quickly.

It started as a normal year with normal sales increases, but it was soon swept into a whirl of rising and falling markets caused by war scares, peace rumors, defense programs, a presidential election, an unprecedented conscription act.

It was a year that showed the remarkable adaptability of American business. It closed about as it had begun — normally, without bending to the shocks of international, national or local economic disturbances.

The year got off to a good start in men's apparel stores, opening as it did with a decided up-trend. Seventy per cent of a representative group of stores reporting showed an improvement over January 1939 that averaged 17 per cent. Another 15 per cent noted that sales were just about the same. A cold wave that brought snow and low temperatures aided overcoat sales.

As the Spring season opened, the merchants looked forward to some price rises in woolens but few changes in cottons. Averaging the prices on low and high range garments for the entire country, the average for 1939 was $22.39 as compared with $23.65 for 1940 for low range; and for high range the average of $46.50 for 1939 compared with $48.00 for 1940. In many instances stores that were featuring a $22.50 garment as a starting price offered a better quality $25.00 garment to take its place. Where $50.00 had been the top price in retail stores, the tendency was to hold the price at that figure, but the popular ranges of $32.50, $35.00 and $40.00 were all moved up a notch, usually with an advance of $2.50.

March was a good month, with Easter sales well ahead of those of 1939. Improved business conditions reached into the credit department where it was reported that collections for the year were about 12 per cent better than for the corresponding period in 1939. A slight increase in the percentage of business done on credit was also noted and it was estimated that almost 53 per cent of store volume was on a credit basis.

A change in the credit buying habits of the public was to be noted as the third-a-month payment scheme reached new levels of popularity and replaced to a large extent the old 10-Pay and 20-Pay plans. Most merchants were becoming convinced they could show better results collecting a third each month for 90 days than by trying to collect it all on the regular 30 day open account basis.

In April 1940 the National Association of Retail Clothiers and Furnishers announced its survey of costs for 1939 and its comparison with the ten previous years. The survey reflected a more favorable condition among men's apparel stores for 1939 than 1938, particularly among stores with a volume below $100,000. Total operating expenses were slightly lower, dropping from 31.2 to 30.02 per cent.

Executive and buying salaries showed only a fractional change. Busheling expense, rent and advertising increased but the increase was offset by selling salaries and some of the more constant overhead expenses that dropped as volume climbed.

The smaller stores were in a substantially better position than the larger stores. Not only were they able to cut costs while the large-volume firms showed increases, but turnover in all departments was speeded up and they were able to maintain a better gross mark-up than they did the previous year.

Substantial improvement was made in the gross mark-up of the stores with volume over $100,000 but such gains were offset by a poor turnover record and higher costs which went from 34.8 per cent in 1938 to 35.37 per cent in 1939. Executive and buying salaries were at the highest point of the eleven year period.

Net profits of both groups improved. Among the smaller stores they went from 4.36 per cent in 1938 to 6.02 in 1939. In the large volume group the increase crept up from 1.1 per cent to 2.79 per cent.

Improved conditions for the farmer were reflected in the increased turnover in the work clothes department. For long a nuisance department in the men's apparel stores, changing economic conditions are making it one of the most profitable. In twelve months the average turnover shot from 1.82 to 2.35 among the stores with volume under $100,000 and from 2.39 to 3.72 among stores with volume over $100,000.

Somewhat alarming were the sharp increases in costs of large stores during the past two years. In 1937 they were 31.1 per cent; in 1938 they went to 34.8 per cent; in 1939 they climbed to 35.37 per cent.

In April 1940 the industry had its first bad month of the year, due possibly to an unfair comparison, since the Easter season had come a month earlier. Of the men's stores reporting, 80 per cent noted sales declined over the same month in 1939, the decrease averaging slightly over 20 per cent. Some merchants began to fear that prices rising beyond the public's ability to absorb might retard volume.

In determining their Fall purchases most stores based commitments on 60 per cent of the previous Fall volume, a normal commitment. Buyers were certainly not in the mood to gamble on merchandise — a sane policy that proved its merit later in the year.

Helped by the most favorable straw hat season in years, the industry showed a ten per cent increase in May over the previous May and by Mid-Year the record appeared quite favorable, with 64 per cent of the reports noting an improvement over the previous six month period.

July and August both showed improvement but conscription was in the air and merchants were freely predicting that the Act would materially retard sales of civilian apparel.

Events moved rapidly in the industry during the month of September as volume began to slow down. In an effort to combat buying inertia caused by the draft, a leading Chicago men's apparel store startled the country by offering to refund the full purchase price on any garment purchased by customers called for army service. Within twenty-four hours practically every credit man in the country was aware of the offer and within two weeks thousands of stores were advertising the same plan.

Meanwhile retailers were becoming concerned over the possibility of runaway prices. The National Defense Advisory Commission was organized and functioning and various retail organizations, including the clothiers, were appointing their own defense committees to cooperate in the effort of holding prices at normal levels and of discouraging advertising ballyhoo along the lines of 'Buy Now — Prices are Rising.'

There was definite evidence in October that the impending draft was hurting trade. Reports from 48 per cent of the clothiers indicated declines in volume over the same month in 1939.

In November prospects were much improved. The defense program was well under way; the national election was a thing of the past; draft numbers had been assigned and the first men called for service. Early snow and cold weather over most sections of the country combined with these other factors to reverse the trend and to bring promise of holiday running well ahead of 1939. Christmas shopping started early and men's apparel merchants for the most part were describing the year as 'satisfactory.'

1939: Men's Apparel Industry

Despite wars and rumors of wars, despite an erratic stock market, despite rising prices, widespread labor strikes, unseasonable weather and all the other troubles that have plagued the average merchant, the year 1939 will go down in history as a satisfactory year for the men's apparel industry.

Most significant, perhaps, is the fact that during its entire length there were no serious setbacks; there was not a month when the majority of stores did not show a sales pick-up over the corresponding period in 1938. It was a year marked by minor recessions counterbalanced by advances. It was a year when pessimism and gloom which had settled over all business in the wake of European catastrophe was overcome by the prospects of accelerated trade at home. In short, normal trade results were secured in one of the most abnormal periods in history.

A downward sales trend that made itself felt among men's apparel stores in 1938 began to reverse itself during the holiday period a year ago and the lead thus gained was carried through, almost uninterruptedly during 1939.

Whereas 1938 volume fell approximately 12 per cent behind 1937, holiday sales for the month of December were 10 per cent ahead. It proved a good omen for 1939.

Clearance sales were started early and, encouraged by the previous month's pick-up, considerable promotion was employed with the result that a majority of stores showed an improvement over the previous January and freely predicted that 1939 was destined to be a better year than its predecessor. All sections of the country reported advances. A sharper improvement was to be noted in February. Three-fourths of the stores were found doing as well or better than the previous February and an average improvement of 17 per cent was noted by 56 per cent of the members of the industry's National Business Committee. Overcoat volume was way off but suits and furnishings made up for it.

Easter business was better than during the previous year with an average pick-up of 16 per cent reported. By this time the European situation was becoming more acute, however, and many merchants were considering it the greatest single factor in the retarding of progress.

In April, the stores were unable to hold the lead gained during the previous months. Again there was a marked degree of uncertainty in business circles. Then in May stores in all sections of the country were reporting their best gains of the year. The improvement over the same period in 1938 averaged almost 23 per cent and at least some of the gain was attributed to the growing interest in sports attire which was fast opening up new and more profitable markets.

At the close of the first half almost 80 per cent of the reports noted an improvement over the first six months of 1938. The average increase was 12 per cent. Father's Day, the most successful ever celebrated, put the month of June on the profit side of the ledger.

Throughout the year an increase in extended payment plans was noted. The 90-day, third-a-month plan, continued to grow in popularity and was supplemented by the coupon credit plan, enabling purchasers to make small purchases as well as large with coupon books purchased on the budget plan. Collections remained much the same as the previous year.

A credit survey revealed that 46 per cent of sales in the industry today are for cash; 54 per cent credit. Of this 54 per cent, 33 per cent is on a straight 30-day charge basis; 21 per cent on various budget plans.

The trend of style during 1939 proved a decided asset to the men's apparel merchants and was responsible in some degree for the satisfactory results obtained.

As previously noted, the interest in special sports attire widened. The slack ensemble became practically an essential in the average man's wardrobe and there was sufficient change in styles and fabrics to assure a continuous and strengthened demand.

Matching sports shirts and slacks both in solid colors and contrasting colors sold well. Crashes were supplemented by gabardines, rayons and other fabrics. In regular business suits, more variety in fabric was introduced. Tweeds and other rough fabrics, gabardines and some coverts vied with unfinished worsteds. The public began to show interest in the two-piece suit for Spring and Fall, the garment often being worn with a sleeveless sweater instead of matching vest.

The three-button jacket practically put the two-button model out of the running. Fancy back suits became somewhat passé and the loose-fitting, more comfortable drape model enjoyed stronger popularity than during the previous year. Younger men took to the Hollywood models with their shirred and tucked waists, etc.

There was a newly aroused interest in body hats that largely replaced the sailor type in many sections. This new trend was brought about by the development of novelty weaves that made for more comfortable and at the same time economical summer headwear.

In spring and fall headwear, the sports influence was accentuated. Hat ribbons almost disappeared, as silk cords, leather cords and felt bands became popular. Colorful feathers played an important part.

Merchants watched carefully the development of yarns made from coal, used in the production of fine hosiery; glass threads woven into neckwear; elastic glass converted into belts, garters and suspenders. The interest in Lastex yarns for bathing suits, supporting undergarments, hosiery tops, etc., continued strong. The garter industry suffered another blow as the public gave further recognition to self-supporting hose.

The use of slide-fasteners on men's apparel of every type advanced along with the new heavy-duty snap fasteners. Both played havoc with the button industry. The slide fastener became standard equipment for, practically all trouser lines and the topcoat with slide-fastened lining increased its popularity.

Variety was added to summer sports shoes with the featuring of air-conditioned mesh fabrics combined with tan leathers in contrasting colors.

New color shades in clothing and furnishings stimulated sales. Off-shades of green were popular early in the year, giving way during the latter months to shades of blue. Stylists saw the United States the leading men's style center of the world as Britain turned its attention away from dress apparel and concentrated on heavy production of military attire.

With business running on a fairly even keel, great strides were made in modernization. Streamlined store fronts; air-conditioning for summer and winter comfort; fluorescent and other types of modern lighting, were made part of extensive modernization programs that helped considerably to keep the public in a buying mood.

1938: Men's Apparel Industry

Styles in Men's Apparel.

The men's apparel industry, like most others, stepped off to a poor start in 1938. The first quarter left plenty of room for improvement; but, unlike some of the other major industries, that improvement failed to materialize to any marked degree as the year progressed.

Trade declines were not so severe, however, as to retard an increasing interest in style. Several new trends threatened to change the industry's entire seasonal set-up. The new matching ensemble suit with shirt and slacks or jacket and slacks to match had the effect of limiting regular spring suit sales as did also the new and more practical ideas developed in spring and summer wash suit fabrics.

Greater styling in the mohair types, the introduction of new acetate yarns, the increasing popularity of gabardines, and a limited interest in silk as a clothing fabric, all had an influence.

Along with a greater acceptance of soft goods in suitings, including cheviots, shetlands, tweeds, etc., came a more marked interest in the so-called 'drape' model jacket. The trend was definitely in the direction of greater comfort without sacrificing style smartness.

The sports back suit, so popular in 1936 and 1937, lost considerable ground in 1938, and predictions were made that during 1938 it would account for only about 10 per cent of the total suit demand.

The coat with removable lining, designed to convert a topcoat into an overcoat, threatened to create interest in a one-coat instead of a two-coat customer. However, this type of garment failed to make the sweeping gains many believed it would, though the industry is still watching it closely.

Green, generally conceded to be one of the dangerous colors in men's apparel, emerged from the shadows during 1938 and gave promise of being top notch during the spring of 1939. The popular new greens are mostly a harmony of green and blue and green with other color tones, rather than pure green.

The steady march to supremacy of slide-fastener equipped trousers gathered momentum during the year. Interest in the popular gadget for use on shirts, underwear and pajamas also increased and the snap buttons for underwear shorts grew in popularity. It was a year during which the button industry lost considerable prestige.

The use of Lastex yarns in swim suits and underwear became more important. In swim suits, garments were further abbreviated; made to fit closer; and in most sections of the country, the upper portion of the garment was dropped entirely.

Tyrolean hats were in strong demand and the sports influence became accentuated as braided bands, colored feathers and new rough fabric felts were introduced.

Volume of Business.

Figures from the current Census Survey of Business inform us that among independent men's clothing and furnishings stores, volume during the first half of the year dropped 16.7 per cent over the same period in 1937. However, the loss during the first quarter was 18.1 per cent and was cut down to 15.7 per cent during the second quarter.

No Government figures are available for the period following, but preliminary reports which we receive monthly would indicate that holiday trade was about on a par with last year and the year as a whole will end up only about 12.5 per cent behind 1937.

When we consider the tremendous odds the clothing industry worked against during the past twelve months, a more substantial decline might readily have been expected.

While 1937 volume was somewhat ahead of 1938 among men's apparel stores, the downward trend had already started toward the latter part of 1937 and spread during the early months of the new year. January was a slow month and with inventories heavier in February than they should be, commitments for summer goods were sluggish.

The late Easter season helped to put March volume far below normal. Sales declined more than 25 per cent over the same month in 1937. The record for the first quarter was decidedly dismal.

April brought a temporary upturn and although pre-Easter sales failed to reach the pre-Easter volume of the previous year, totals for the month went substantially ahead of April 1937. Then in May sales dropped off again, despite numerous promotion events and in June the upward trend of the stock market and favorable farm conditions in most sections failed to aid retail sales. There was another swift downward trend that was just as quickly checked in July.

August was considered to be a normal month in the industry. At the end of the 10 month period volume for the year was shown to be off approximately 13.6 per cent and comparatively little took place to alter that figure during the following two months.

Too much emphasis is sometimes placed on the weather in fixing the blame for retarded volume in the men's apparel industry. There can be no doubt, however, that a cool summer and late fall and winter contributed much to fluctuating conditions in the industry during 1938. Advances made possible by an improved economic situation were successfully blocked by weather conditions unfavorable to the apparel business.

Retailers made an effort during the year to have the WPA buy up excess clothing stocks on their shelves. Though unsuccessful in their efforts, the extensive purchases made by the WPA from manufacturers, placed the industry in a healthier condition and undoubtedly aided the retailer, at least indirectly.

Credit conditions remained almost constant during the 12-month period. There was a tendency to expand terms somewhat and the 'third a month' or 90 day plan increased in popularity. No sharp declines in collections were to be noted due to careful and efficient follow-up.

With an even break in the weather and no unforeseen catastrophes, men's apparel merchants are convinced that 1939 will be a better year than 1938.