Flash Report on School Uniforms 2015 by FBIC Global Retail Tech

 September 8, 2015
SCHOOL UNIFORMS Demand AT 13-YEAR HIGH
According to the NRF’s 2015 Back-­‐
to-­‐School Spending Survey, 28% of parents say their children wear a school uniform. This is the highest percentage recorded in the survey’s 13-­‐year history, and it bodes well for uniform sales. It may, however, have negative implications for retailers that are focused on traditional kids’ and teens’ apparel. Over the past decade, school uniforms have become increasingly popular. Historically, uniforms were limited to private and religious schools, but in recent years, public schools have begun to favor uniforms for their students, too. According to ProCon.org, 20% of public school students were required to wear a uniform in the 2011–2012 school year, compared to about 12% in the 2003–2004 school year. And, according to a survey by Lands’ End and the National Association of Elementary School Principals, almost half of US public schools had a formal dress code or uniform requirements in 2013, compared with only 21% in 2000. In 2011–2012, 20% of public elementary schools enforced a uniform policy, while 12% of secondary schools did. A higher proportion of schools located in cities made uniforms mandatory that year than did schools in suburban, town and rural areas. The cities with the highest public school use of uniforms were Philadelphia (100% of schools), New Orleans (95%), Cleveland (85%), Chicago (80%), Boston (65%) and Miami (60%). Uniform adoption by public schools is skewed toward lower-­‐income and high-­‐poverty regions (in which 76% of students are eligible for reduced-­‐cost or free lunch programs). Those supportive of uniforms say they level the playing field for all students and ease the financial burden on students’ families, in addition to allowing students to focus better on their schoolwork. The definition of a school uniform has also changed over the years. Uniforms are no longer strictly plaid, ties and sport coats; they are now more likely to include casual polos and khakis. We estimate the school uniform market to be worth about $1 billion. The market is highly fragmented, and the largest manufacturer, French Toast (owned by the LT Apparel Group) has a 10% share of the market. Other large players include Elder Manufacturing, School Apparel, Dennis Uniform, Rifle/Kaynee, Flynn & O’Hara Uniforms and Young Fashions School Uniforms, all of which are private companies. DEBORAH WEINSWIG, EXECUTIVE DIRECTOR–HEAD OF GLOBAL RETAIL & TECHNOLOGY DEBORAHWEINSWIG@FUNG1937.COM US: 917.655.6790 H K: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2015 The Fung Group. All rights reserved. 1
Boscov’s, a regional department store, has seen the impact of school uniforms on fashion apparel sales over the last few years. In response, it has adapted its assortments according to local customer demand and school uniform adoption. Many other retailers, such as Amazon, Target, Walmart and Lands’ End, also sell school uniforms. This may limit the negative impact of declining traditional apparel sales, although uniforms are typically less expensive than other clothes are. Sensing the shift retailers have set up uniform shops within the store rather than just displaying uniforms in the apparel section. The company also added uniforms to "Classrooms by Walmart," an online tool for parents and teachers to access school supply lists from thousands of schools. Even stores that one might not think of in connection to school uniforms have begun selling them: for instance, office supply retailer Staples is selling uniforms online. DEBORAH WEINSWIG, EXECUTIVE DIRECTOR–HEAD OF GLOBAL RETAIL & TECHNOLOGY DEBORAHWEINSWIG@FUNG1937.COM US: 917.655.6790 H K: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2015 The Fung Group. All rights reserved. 2
Deborah Weinswig, CPA Executive Director—Head of Global Retail & Technology Fung Business Intelligence Centre New York: 917.655.6790 Hong Kong: +852 6119 1779 deborahweinswig@fung1937.com Filippo Battaini filippobattaini@fung1937.com Sunny Chan, CFA sunnychan@fung1937.com Marie Driscoll, CFA mariedriscoll@fung1937.com John Harmon, CFA johnharmon@fung1937.com Aragorn Ho aragornho@fung1937.com John Mercer johnmercer@fung1937.com Shoshana Pollack Shoshanapollack@fung1937.com Kiril Popov kirilpopov@fung1937.com Jing Wang jingwang@fung1937.com Steven Winnick stevenwinnick@fung1937.com HONG KONG: 10th Floor, LiFung Tower 888 Cheung Sha Wan Road, Kowloon Hong Kong Tel: 852 2300 2470 NEW YORK: th
1359 Broadway, 9 Floor New York, NY 10018 Tel: 646 839 7017 LONDON: 242-­‐246 Marylebone Road London, NW1 6JQ United Kingdom Tel: 44 (0)20 7616 8988 FBICGROUP.COM DEBORAH WEINSWIG, EXECUTIVE DIRECTOR–HEAD OF GLOBAL RETAIL & TECHNOLOGY DEBORAHWEINSWIG@FUNG1937.COM US: 917.655.6790 H K: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2015 The Fung Group. All rights reserved. 3