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Tiffany Montgomery
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PacSun's plans for 2008

By Tiffany Montgomery
January 17, 2008 10:09 AM

I sat in on PacSun CEO Sally Frame Kasaks' presentation today at the ICR XChange conference.

Here are some interesting things she had to say.

In 2008, PacSun plans to

- Grow apparel to 75 percent of sales

- Drive the tops business in young men's and juniors

- Achieve a balance of 50 percent young mens and 50 percent juniors apparel in stores

- Improve inventory turns, inventory management and inventory flow - "A critical part of our business strategy going forward," Kasaks said.

- Refresh 75 stores

- Invest in supply chain management so floor-ready product is sent to stores instead of having store personnel in the back room processing goods. This will lead to better service, Kasaks said.

- Be immersed in youth culture. "There's a renewed interest...in action sports" and PacSun wants to build on that.

Other interesting tidbits

- Kasaks noted that PacSun is bringing in new brands that are more relevant to today's youth. She said there's a generational transition going on, and the brands most at the conference are familiar with are not necessarily the ones PacSun's customers want. Young people today move fast, she said, and "We have to keep up. So do our brands."

- The refreshed stores are hitting an internal target of 15 percent comp sales increases. By March 2008, 138 stores will be refreshed or a new prototype.

- Overtime, juniors apparel will be 50 percent outside brands and 50 percent PacSun-owned brands.

- While guys care more about brands than girls, PacSun does see more opportunity in its proprietary brands for guys, most notably Bullhead denim.


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