Discount Apparel Retailer Ready to Thrive In Down Economy

Today, Forman Mills sells apparel for the entire family, including shoes, jeans, dresses and shirts, as well as home furnishings, such as bath towels, dishware and pots.

As more consumers operate on tight budgets with less disposable income, Forman says he and other discounters are in a position to attract shoppers who want to save money. “We’re their answer,” he says. “We’re going to be able to clothe their family for $100.” One of the company’s current slogans is “Come stretch those bills at Forman Mills.”

The company grows into new locations opportunistically, Forman says, by finding vacated retail space to move into. “We opened five stores in the last 30 months,” he says. The company has seven stores in New Jersey as well as 18 across the country in Michigan, Pennsylvania, Delaware, Maryland and New York.

Forman’s growth strategy has been to focus on underserved, low-income, urban areas that may have few local retailers to choose from. “We go into areas that are somewhat forgotten,” he says. “We go into second- and third-generation real estate.” Forman Mills Clothing Factory Warehouse stores can be found on the site of former supermarkets and warehouses, Forman says. The stores average 40,000 square feet to 50,000 square feet in size, though some locations top 100,000 square feet.

Forman says the tough economy may actually offer him the chance to expand into new locations as other retailers are forced to close their doors. “It’s like the Wild West,” he says. “There is going to be a fallout of other retailers, unfortunately. There’s going to be a lot of vacancies. We are waiting on the sidelines.”

E-mail to jpruth@njbiz.com