Off-price Is on Target With Value-Based Fashion Model

This holiday shopping season, retail analysts are bullish on the off-price segment and expect it to outperform traditional department stores. From a consumer perspective, the appeal is simple: fashion-forward apparel, footwear and accessories sold at 60 to 70 percent below department store price points. As a result, the share of off-price apparel in the closets of shoppers has swelled to 15 percent this year, according to GlobalData, from 10 percent in 2008. Over the next decade, the share is pegged to reach 18 percent. And while major retailers such as TJX Cos. Inc. and Ross Stores dominate the segment, the retail model of off-price is a strategy that all specialty retailers can deploy. Here, Tricia Barglof, the executive director of the Offprice Show, shares insights into the event, which convenes retailers and brands annually. WWD: What’s driving interest in the off-price segment? Is it more than low price alone? Tricia Barglof: Competitive pricing will always be the driving force behind the success of the off-price channel, but there’s more to it than just the low cost of products. Some retailers in the industry still mistakenly believe that “off-price” refers to cheap goods or last season’s styles. In reality, off-price products reflect the current season’s fashion,

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