Foothill Ranch-based Wet Seal Inc. is playing up “basic” clothes at its Arden B. stores to lure shoppers.
Think $38 to $58 tops, $98 denim pants and moto jackets.
Eric Beder, analyst at Brean Murray, Carret & Co., said the move should help the retailer, which sells garb to women in their early 20s and 30s, stop slashing prices.
“The rollout of basics somewhat cuts fashion risks and lessens the need for material discounting to drive sales,” Beder said. “The store we visited had one rack of 75%-off items and one of 40%-off.”
Arden B. “remains a work in progress,” Beder said.
The chain has spent the past year reworking to improve sales, including bringing in new designers, tweaking its clothing offering and marketing.
Arden B. has been working hard to stand out amid stiff competition, including from Bebe Stores Inc.
Wet Seal reported a 7% drop in same-store sales for the five weeks through Oct. 6, slightly better than the company’s forecast of a 7.5% to 8.5% decrease.
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Arden B.: playing up less-expensive classic clothes |
The company said shoppers to its Arden B. stores started to increase toward the end of September, driven by the popularity of moto jackets and a new collection called “Out of the Blue.”
That line features tops and dresses in teal, brown and denim pants and shorts.
“Traffic is starting to grow once more in the aftermath of the back-to-school season,” Beder said.
Still, until Arden B. fine-tunes stores and gets its mix of clothing right, Beder said he expects sale totals to be random through the remainder of 2007.
Wet Seal could use the boost.
The company’s Wet Seal stores continue to have “sluggish” traffic, Beder said.
“Warmer weather has considerably slowed the sale of outerwear items,” he said. “The company is marking down significantly both denim and sweaters to move them off the shelves.”
There are some bright spots at Wet Seal, Beder said.
Some sweaters are “beginning to get noticed by customers, especially lighter ones,” and print T-shirts are popular, Beder said.
Wet Seal is expected to continue to discount in October and have inventory “clean for the holiday period,” Beder said.
The company expects a drop of 2% to 6% in October same-store sales.
Eyes will be on Wet Seal’s new Chief Executive Edmond Thomas, a former Irvine-based Tilly’s Inc. executive, who recently took the reins from Joel Waller.
“We believe Wet Seal will be somewhat in the ‘penalty box’ with investors until it becomes familiar with the new management team and the company once again registers consistent returns,” Beder said.
‘Utilize Exceptional Talent’
Irvine-based Morgan Marketing & Public Relations LLC recently promoted one of its workers.
The shop named Danny Craig as senior account supervisor. He’ll oversee several agency accounts, including Newport Beach’s Galardi Group Inc., Pasadena-based Wetzel’s Pretzels LLC and Phoenix’s Snell & Wilmer LLP, which has an Irvine office.
His work includes giving guidance, handling press materials and planning special events.
Craig’s promotion is part of several moves the public relations firm has made to better serve clients, said Melinda Morgan, agency president.
Morgan said in the last year she hired an experienced account executive and account coordinator to strengthen the company’s mid-level support, promoted workers at “nearly every level” and tapped interns to help with work during the summer.
“The industry continues to face a shortage of qualified professionals and we seldom miss the opportunity to utilize exceptional talent,” Morgan said.
The shop is now hunting for a mid- to senior-level executive and an account coordinator, she said.
“Client retention remains key for our agency,” she said.
Several of Morgan Marketing’s clients have been with the shop for eight to 12 years, Morgan said.
“Both with regional and national clients, budgets have been sustained and, in nearly every case, increased,” Morgan said.
The shop has also seen an uptick in work from new clients.
Morgan said the company was recently tapped by Boston-based Suffolk Construction Co. to handle media relations for its West Coast division in Irvine.
HeilBrice Relocates
HeilBrice Inc. recently moved to Irvine.
The shop, which handles marketing and advertising, shifted its offices from Newport Beach to the Irvine Spectrum.
Hal Brice, the shop’s chief executive, said the agency designed the space to meet its needs.
It houses about 40 employees, including the marketing team and print, interactive, sound and video studios.
“Interaction and communication between our team members, workflow and process are all so much easier here,” Brice said.
The company’s clients include Pathmark Stores Inc. and Kroger Co.’s Ralphs Grocery Co.
