Fraserlive: Super Cooper

No wonder Denny Collins is selling heaps of his Cooper denim jeans to boutiques. For a start, he won't sell them to anybody else. At a recent trade show he displayed a sign on his stand which read: 'Not available to department or discount stores'.

He noted that persons from these retail groups did not grovel to him for supply nor did they appear with legal representation to challenge the restriction.

There's more. He's ditched his agents, with the exception of one that does Victorian country, in favour of direct selling.
The jeans, nicely styled by partner Victoria Cooper are of good quality and made in China. They have a signature 'crossgrain' weave with a satisfying whiff of spandex in the weft. There is a choice of indigo, washed-down or white. They retail for under $100 and carry a highly pleasing margin, with the selling price displayed on the supplied and affixed swing ticket. For example, a pair costing the boutique $32 retails for $89.

Now you may think that I'm on the take from Denny. I'm not; I wear Target jeans for reasons already fearlessly admitted. In any case, the last time I looked I was of the male gender and Cooper is for the birds. What I'm on about is that it makes sense to look after your market and tell that market you're looking after it. Denny's jeans are probably no better than a lot of others but his deal is focused. There's the quality and there's the mark-up of between 120 and 150 per cent.

Jobbed Myer jobs
There are several good jobs going at Myer as key fashion people jump ship, one after the other. Bob Boutin has gone and so has Mark Bingemann. This has given a leg-up to kidswear, intimate apparel and cosmetics buyer, Judy Coomber, who will head up the whole bloomin' fashion division. It will be easier to get an audience with the Pope than to get her to look at a rack of dresses.

Myer's profit was okay for the first half year, which encouraged the foot soldiers, but internal management style has obviously changed not to their liking. In the end, this was probably inevitable, and the outcome might well be a better way to run 60 department stores in Australia. We have to give Bernie Brookes a go, although we must remember that he comes from a Woolies background where you punch hard and low. My guess is that the current management flurry is superficial and that the real agenda is to get away from the bureaucracy of buying offices and trembling sales reps into house brands for basics and concessions, lots of them, for fashion brands. That would crank up labels and the excitement, but shift the irksome responsibility of staffing and stock to the concession holders.

I know one high profile label that is relishing the change to do it their way and show the world the glory of the right stuff - which can only be done through a concession. Moves like that just might be the renaissance of Myer and give David Jones a better run for its money.

Speaking of labels, I note that Target's love affair with Stella McCartney was not a one night stand after all. Following the first, fine, careless, rapture, more stock came in and is hanging too peacefully on the racks. It's a bit like walking down the streets of Pamplona in Spain the day after the running of the bulls and wondering what all the fuss was about.

David Jones locker
And while I'm on the subject of department stores, a friendly letter from David Jones to its suppliers on April 19 made me feel stupid, and not eligible ever to be a supplier. For instance, under a heading of H107 I was told that total EBIT to sales 10.9 per cent was +120bp. Wow! I had no idea. Er, well done. I suppose. Even though I admit to not being too good at acronyms or code breaking, I still feel intellectually impaired and a sandwich short of a The letter was not all above me, however. I did get the message that suppliers were going to have to pay more towards settlement terms, intake mark up rate, inventory management, merchandise allowances and support new stores and refurbishments.

And here's a beauty: "David Jones also seeks to recover and eliminate costs associated with advertising and logistics."
Wrapped in words of thick cotton wool is the sharp reality that suppliers are in for further nibbling of their margins. I'm told by some that they fear being nibbled to death. But at least they will have the pleasure of knowing that they chipped in for new stores in Burwood (NSW), Chermside (Qld), Queens Plaza (Qld), Doncaster (Vic) and Claremont (WA)