RETAIL PROFILE

Outlets fit Haggar

like a good suit
Haggar Clothing
Company Time-Line
1926: Haggar Clothing Company is founded
Lebanese immigrant Joseph Marion Haggar in a
one-room office in Dallas.

^ 1 9 2 9 ; The company occupies two floors and

quickly grows to 500 employees producing more
I t h a n 75,000 pairs of pants annually.

I 1933; Haggar changes manufacturing methods j

to follow Henry Ford's Straight Line Production
I method.
)

1938: Haggar goes national, employing a

national sales force and running a national ad
campaign.

Haggar Clothing Co. is the nation's No. 1 maker of men's dress pants and No. 2 maker of men's
casual pants.

The 87-year-old apparel

company sees plenty of
opportunity and growth
potential in today's
growing outlet sector.
By B.C. M A N I O N
Contributing Writer
HAGGAR C L O T H I N G CO. is buiUsh on
oudets.
The company, which has been making quality men's clothing since 1926, already has 62
oudet units and ideally would like to double
that figure over time, said Jackie Randall,
VP-retail for the brand that prides itself on
innovadon, quality and craftsmanship.
"Oudets are a very big growth market," Randall said, adding that the Dallas-based company is choosy about new outlet locadons. That's
why it keeps three Ts top of mind: Tourism,
Tenants and Traffic.
"High tourism in the marketplace is an
important factor in selecting a site for Haggar," she said. But within a center, "a locadon
between major anchors to drive traffic in front
of the lease line is cridcal."
Thus, the lineup and locadon of other tenants in reladon to Haggar is so vital that not
having the right space in a center can be a
deal-breaker.
L
5 0 V A L U E R E T A I L N E W S OCTOBER 2 0 1 3

The size of the space is important, too, Randall

said. Haggar's 60 U.S. outlets are primarily 2,800 sf
to 3,000 sf, and its two Canadian units are 3,500 sf.
The company's expansion plans call for
opening 10 to 15 new oudet stores annually in
the U.S. through 2017, and two to three stores
annually over the next four years throughout
Canada. By the end of 2013, Haggar will have
66 outlet stores.
Haggar Clothing Co. today holds the No.
1 market position in men's dress pants in the
United States, as well as the No. 2 share in
men's casual pants. In fact, Haggar is somewhat synonymous with men's casualwear and
is credited with coining the term "slacks" in
1938. The term defined a new apparel category
made especially for non-working hours, or
"slack" time.
Today, with its Haggar and LK Life Khaki
brands, the company continues to celebrate
classic American style, but also offers a modern twist, giving its customers the opportunity
to mix and match elements of their wardrobe
with confidence.
Haggar wants to control its brand within
its four walls and give shoppers a pleasurable
shopping experience, Randall said. Its new
oudet concept employs a combination of
focal walls and floor-to-ceiling demising walls
to reinforce the sense of rooms without hard
barriers in place. The interior design emphasizes the company's main lifestyles, which include
casualwear, golf attire and tailored dress wear.
"The fitting-room area is ded to a seating

( 1940: Haggar creates the first pre-cuffed pants. J

1942: Haggar factories are operating 24 hours a

day supplying clothing for the U.S. military. By the
end of the war, more than 10 million garments
were produced in Haggar factories. By the end
of the decade, Haggar had become the largest
producer and marketer of slacks in the world.
/

1950S: Haggar advertises nationally in both tele-

vision and print, including Life, Esquire, Collier's,
Men's Wear Daily and Daily News Record. The
company's ad in Life magazine features the Haggar
Harmony Chart, which shows men how to mix and
match shirts and jackets with Haggar slacks.

1952: Haggar introduces Forever Prest, the

forerunner of wrinkle-free pants. Advertising
heavily in such publications as Sport and Sports
Illustrated, the company began to associate its
name with sports heroes like Mickey Mantle,
Bobby Lane and Arnold Palmer.

1956 and I 9 6 0 : Haggar supplies slacks for the

U.S. Olympic teams, beginning an association
with sports that led to its current-day sponsorships of the gold enshrinee jacket for the Pro
Football Hall of Fame and the navy enshrinee
jacket for the Hockey Hall of Fame.

[ 1 9 6 3 : Haggar becomes an early sponsor of

I A B C ' S "Wide World of Sports."

( 1968: Haggar conceives and sponsors a new TV

I show, "This Week in the NFL."

1970s: Haggar beconnes the No. 1 pants brand

in the country. In the late '70s, Haggar begins
nnanufacturing sport coats, vests and men's
Custom Fit suits. Launching a new category - suit
separates.

1 9 7 7 - 7 8 ; Haggar begins making the Pro

Football Hall of Fame gold jackets after the original tailor retired. J.M. Haggar Jr and his brother
Ed Haggar had a small ownership in the Miami
Dolphins with founding partners Danny Thomas
and Joe Robbie. Haggar Clothing Company is
now on its third version of the jacket, making the
most recent style update in 2012.

1980s: Haggar is among the first apparel manuA

facturers to adopt EDI quick-response inventory
replenishment and UPC codes on merchandise tags J

^9S7:
Haggar invents and patents the "Size
Strip" sticker, used by most pants brands today
I to identify size and fit on folded bottoms.

I 1990s: Haggar introduces 100 percent cotton )

yjA/rinkie-free pants.
J

1 9 9 2 : Haggar goes public, trading on the

NASDAQ exchange.

I 1993: The first Haggar outlet store opens on

\ A p r i l 23 in Hillsboro, Texas.

2000S: Haggar begins a campaign to create'

ecofriendly apparel made from recycled or
renewable fibers.

Haggar's Life Khaki line is made from recycled water bottles.

area to build overall shop time for our customers the whole area is designed to reinforce the
warmth and character of the store," Randall said.
The cash wrap and back wall offer "a final
touch point for the customer, bringing together all the details and finishes of the store's
focal elements along with an understated Haggar logo," she said. "We hope that the sum of
all these experiences will leave a lasting impression with the consumer."
Haggar understands that shoppers want an
inviting environment, but the company knows
that consumers also want good value, quality
and selection.
The outlet stores carry key pants selections,
including Work to Weekend khakis and Cool
18 performance pants. About 90 percent of
the outlet inventory is current-year product,
with 40 percent made exclusively for outlet.
About 10 percent of Haggar outlet inventory
is seasonal liquidation, Randall said.
Price-points at Haggar outlets range from
$4 for socks, to $30 for khaki pants, to $99 to
$129 for suit separates. The average discount is
about 60 percent off manufacturer-suggested
retail prices, she said.
Haggar's marketing efforts are evolving
toward more email and less direct mail. The

company has a robust customer relations

management system, allowing it to be in the
know about its customers' shopping habits
and preferences. Haggar uses that information to reach out to consumers with relevant
offers.
Although privately held Haggar doesn't
disclose sales figures, Randall characterized the
outlet chain as a "very profitable business for
us." She also said the company has had positive comparable sales for the past five years.
Although Haggar doesn't see retail sensitivity as a big issue, the company is still learning
about the differences between consumers who
cross-shop the company's different distribution
channels, she said.
As Haggar plans outlet expansion, the company is aware of the sector's great potential
and its challenges. As more traditional retailers
enter the outlet arena, Randall said, the competition for great sites in great centers heats up.
But Haggar, always moving forward, is testing
the fall-price waters by opening its first nonoutlet unit in 2015. Haggar also plans to open
full-price stores in the UK in the future. Q
For leasing infornnation, contact Scott Wren,
Director of Real Estate, Haggar Direct, Inc.;
scott.wrenOhaggar.conn, (2U) 956-^87.

I 2005: Haggar is acquired by private equityA

firm Perseus, Infinity Associates and Symphony
^Holdings for $212 million.
J

/^2009: Haggar's E-CLO and LK Life Khaki lines^

are documented to have upcycled more than 80
I million water bottles.

2010: Annual sales are estimated at $300 million. J

Haggar is the No. 1 maker of dress\

pants and the No. 2 maker of men's casual
I pants, behind Levi's Dockers.
J

Haggar's new store concept features focal walls and the company's main lifest}'le lines.
5 1 V A L U E R E T A I L N E W S OCTOBER 2 0 1 3

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