April marked the 21st consecutive month that The Buckle generated double-digit comparable store gains. The continued outsized performance has many wondering how exactly the mall-based denim chain from Kearney, Nebraska is doing it.
One reason said to be partly responsible for the teen chain's success is location. Often found in rural communities in Texas and the Midwest, these regions have generally faired better than those in other parts of the country.
Another is that national brands make up 70 percent of its mix while many competitors carry only their own labels. Big sellers currently include Big Star, MEK, Lucky Brand, Silver Hurley, Billabong, Affliction, Roxy and Ed Hardy. The national assortments are complemented by lower-priced yet higher margin private label assortments.
Writing back in December for the Motley Fool, Kristin Graham also believes the chain has benefited from a sophisticated inventory management systems that enables daily delivery of new inventory to continually freshen assortments.
Other analysts have touted its customer service levels, including a layaway program for jeans. Despite being around for 50 years, the 390-unit chain is also seen as having not overexpanded compared to Abercrombie & Fitch and American Eagle.
Writing last week in The Wall Street Journal, James Stewart noted his own problems understanding the concept since no stores are in New York City. He decided to call his niece, Maggie, at Franklin College outside of Indianapolis to get some insight from her sorority members at Pi Beta Phi.
One sorority member said, "[The salespeople] are always really attentive and friendly and they always end up bringing you so many other cute jeans and shirts to try on ... and then you end up buying more than you planned on."
Another said, "I shop there to buy Silver jeans. They are the only brand that fits me, and last many years. I also like the type of clothing they have, which is different from other places like AE [American Eagle Outfitters], Hollister, A&F [Abercrombie & Fitch]... I feel the clothes they sell are definitely worth the price."
Mr. Stewart concluded that The Buckle's appeal seems to be grounded in fit, selection and service rather than a fashion fad, such as Crocs footwear.
"The merchandise isn't cheap (the company says it sells 'medium to better priced' apparel) but still represents value to customers. They end up buying more than they planned on," wrote Mr. Stewart.
He notes that while The Buckle will face increased competition as it heads into the Northeast - its first New York store opened in Buffalo in February - the formula is working.
I wouldn't go so far as to call Buckle the next Wal-Mart of retailing, but it's clearly on a growth trajectory," wrote Mr. Stewart. "If it can emerge from the recession with this kind of momentum, it could be the retail success story of the decade."
Discussion Question: Why do you think The Buckle has been to so successful? In what ways may it be reinventing how teen apparel retailing should be done?