Retailers tap into boomer market

Companies are finally seeing green in the gray-haired crowd.
By AMIE STREATER
KNIGHT RIDDER NEWSPAPERS
Suddenly, 35 is hip.
Forty is hot.
And 50 may quickly become the center of the fashion universe.
Fashion retailers have always sought to cater to the whims of the young, thin and fabulous, but they're starting to figure out that aging baby boomer women -- the youngest of whom are now in their 40s -- don't identify with the likes of Lindsay Lohan.
They're more likely eyeing actresses Halle Berry, Sarah Jessica Parker and Nicole Kidman.
That's an important distinction for retailers to make, because boomer women carry a tremendous amount of economic clout.
How much? Women 35 and older accounted for about half of the $101.6 billion spent on women's clothing between March 2005 and February 2006, according to the NPD Group, a consumer and retail information company.
Spending on themselves
And marketing research shows that older women are also spending more and more on clothing for themselves every year.
"Retailers have to be thinking about this person, because she's got money," says Brenda Kinsel, a nationally known style expert and author of four books on dressing well, including "40 Over 40: 40 Things Every Woman Over 40 Needs to Know About Getting Dressed."
"I think the reason they haven't been paid attention to in the past is because we are so trained to see fashion on very young models and young bodies," says Kinsel, who has also appeared on "Oprah." "That is how it has traditionally been sold. The whole industry pivots around these really young models. We have to retrain our eyes."
A small number of retailers, including Talbots and Chico's, have traditionally done well by catering to older customers. In fact, Chico's reported its best year ever in 2005.
Meanwhile, Gap -- which last year dumped spokeswoman Sarah Jessica Parker around her 40th birthday for 17-year-old singer Joss Stone -- lost millions, the company's annual report shows.
Retailers getting the message
Such patterns are getting noticed. Three traditionally youth-oriented clothing companies are now investing millions in new clothing concepts aimed at boomers:
In August 2005, Gap launched Forth & amp; Towne, a new division aimed at women 35 and older. Five stores opened last year, four in the Chicago area and one in a New York suburb. The company has announced plans to open 10 new stores in the coming months.
American Eagle will open at least four new stores this year under its new concept for men and women aged 25-40, Martin + Osa.
Gymboree Corp. -- best known for its playwear for the preschool set -- launched Janeville in 2004, aimed at women in their mid-30s and older. There are now 17 stores nationwide.
And Talbots, which prides itself on "classic" styles tailored for the over-30 crowd, is making a $517 million investment in the boomer market with its recently announced plans to buy J. Jill, purveyor of a luxe-bohemia look also popular with more mature buyers.
Companies have set their sights on the graying crowd quite simply, experts say, because they're seeing green.
"A lot of companies have been smart in realizing when boomers hit 40 that there would be a lot of money to be made in making fashions that appeal to them," says Suzie Woodward Morris, president and chief image officer for Strategic Imaging Inc., a San Francisco-based lifestyle consulting company.
"It all comes down to the money. It is such a huge market, anyone who doesn't pay attention to it is foolish."
Gap venture
Gap researched the baby boomer market for two years before launching Forth & amp; Towne, and they hired their top designer for the division from Oscar de la Renta.
Based on their market research, Gap executives divided Forth & amp; Towne's offerings into four separate brands described as: tailored, office-friendly separates; sportswear; a trend-conscious line; and a collection that includes "embellished and decorative pieces for the individualist," whatever that means.
Forth & amp; Towne's clothing isn't available for purchase online yet, but what we found by perusing the company's Web site looks dressier than what you would find at the Gap, and not as fashion-forward as Banana Republic.
Is that what women want?
Time will tell. But one thing older shoppers apparently do have in common is a contentment with how they look right now.
Talbot's conducted a study last year and found that the majority of older women are pleased with the way they look: 86 percent in the 35-to-44 age group said "they felt as good or better about how they look today" than they did in high school. For women aged 45 to 54, the number was 79 percent, while 76 percent of women 55 and older said they felt better about their current looks.
What boomers want
The Holy Grail for older women, according to the study, is -- no surprise -- perfect-fitting jeans.
But retailers also know that women "of a certain age" aren't kidding themselves anymore about what they can wear.
"Women realize, 'OK, there is a difference between me and Jessica Simpson, even with plastic surgery and a lot of exercise,"' says David Wolfe, creative director for the New York-based Doneger Group, the world's largest fashion consulting firm.
"A woman of 60 in low-rise skinny jeans and a midriff-baring top is usually not a pretty sight."
Although the financial clout of boomers is the key reason retailers are going after them, fashion-industry insiders say the cyclical nature of trends and good old-fashioned timing also play a part.
Wolfe says the fashion industry became youth-obsessed because of market forces, and those same market forces will now shift the focus again.
"The industry has been predicated on the idea that youth leads fashion since the 1960s, when boomers took control of the world," he says. "Fashion changed. It got young and it stayed young, despite the fact that boomers have gotten older. Now that some boomers are turning 60, that's a real wake-up call."
And fashion-industry analysts say fatigue plays a part, as well.
Whether the rise of the likes of Paris Hilton shows just how low America's youth obsession has sunk, or whether American consumers are just in a better position to appreciate the natural beauty of a laugh line or two, customers of all ages are ready for something new.
"The fashion pendulum has a rhythm to it, and we've gone as far as we can go with flashy, trashy young clothes," Wolfe said. "Designers are feeling like it is time to do something different. And different now is serious and grown-up and sophisticated. Even young women think it's exciting."