American Apparel clothier is excited about its downtown digs

Sep 06, 2008 (Omaha World-Herald - McClatchy-Tribune News Service via COMTEX) -- APP/U | Quote | Chart | News | PowerRating -- Sep. 6--At a time when many retailers describe back-to-school sales as sluggish, American Apparel is reporting increased sales and is expanding, with new stores from Beijing to Omaha.

The new Omaha store, located in the Saddle Creek Record complex at 14th and Webster Streets, is expected to open sometime next week, marking the international retailer's Nebraska debut.

North downtown -- with only a few other retailers, several empty lots and a yet-to-be-built ballpark that won't host the College World Series until 2011 -- is certainly no bustling Beijing.

But American Apparel officials still see promise in the sparse retail-commercial district and in Omaha, said Randy Plemel, project manager with Jordan Parnass Digital Architecture, a Brooklyn, N.Y.-based company hired by American Apparel to open the store.

"I think what's really positive about American Apparel's position right now is they can be very selective with the sites, and go with the ones that make sense financially," he said. "This sort of up-and-coming area, with all the projected development, is a very exciting place. It's definitely the type of location that American Apparel likes."

American Apparel is the manufacturer and retailer of wardrobe basics such as T-shirts, socks, underwear, tank tops and sweatshirts for men, women and children.

Known for its tailored styles of T-shirts made in its Los Angeles headquarters, the company attracts a young, cosmopolitan customer -- much like Urban Outfitters, which opened in the same complex in October 2007.

The Philadelphia-based Urban Outfitters sells hip clothes, shoes, accessories, gifts and home decor items.

Its Omaha opening marked the first time in two decades that a major national clothing retailer had operated downtown. The opening also showed that at least one major retailer saw potential in north downtown.

Plemel, whose company helps American Apparel in site selection, said Urban Outfitters' decision to locate in north downtown played a big role in American Apparel's decision.

"American Apparel generally does very good with Urban Outfitters," he said. "It's a very good combination of brands that don't take each other's business."

Saddle Creek Record's cachet as an internationally renowned independent record label also factored into the decision, he said.

"It's the entrepreneurial spirit that really matches with American Apparel," Plemel said. "It's a great fit."

He also cited the nearby Film Streams independent movie theater, Blue Line Coffee and other plans for the area as draws.

American Apparel also liked the complex because the retailer typically seeks street fronts instead of malls, Plemel said. And the complex also has the atmosphere that draws customers.

"The stores really feed off the nightlife, they really feed off the neighborhoods," Plemel said.

American Apparel is known as an East and West Coast brand, Plemel said, but stores in locations such as Kansas City's Country Club Plaza are performing well, leading the company to continue expanding in new markets.

American Apparel reported opening 16 stores in August alone, bringing the total so far this year to 36. It also reported that for the month of August, sales for stores open for more than 12 months increased 31 percent over the same period last year.

How is the company able to expand at a time when other retailers are cutting back or struggling?

"The company is 'vertically integrated,'" Plemel said, which means it owns its manufacturing plants and all of its stores.

"There are efficiencies gained in that way, and the ability to be very agile with all decisions is an advantage."

American Apparel reported that as of Aug. 31 it employed more than 9,000 people and operated more than 215 retail stores in 18 countries. Plemel didn't know how many people the Omaha store would employ.

Some American Apparel employees traveled to Omaha to hire workers. And they worked some late nights this past week to erect store fixtures and to stock shelves, as concertgoers trickled into the neighboring Slowdown bar, movie theater and other businesses.

With American Apparel's opening, the complex has its retail bays fully leased and occupied.

Jason Kulbel, one of two record label executives who developed the complex, said the store opening marks the attainment of a longtime goal to have the retail space fully leased.

The complex also has seven apartments, and only one has not been leased, Kulbel said.

He also is encouraged to see a neighboring project break ground. Bluestone Development is building 22 Floors, a three-story building at 13th and Webster Streets that will feature retail on the first floor and apartments geared at 20-somethings on upper floors.

"We can only do what we can do right in this block here," Kulbel said. "But obviously we need our neighbors and other developers to get going. And it's exciting to see other development here."

--Contact the writer: 444-1183, christine.laue@owh.com

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