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US specialty apparel retailers avoid over-stacking

US apparel retailers have been beaten by the low prices found at fast fashion stalwarts like H&M and Forever 21 and at off-price retailers like T.J. Maxx, and that is squeezing margins.

The specialty retailers, in a recent Morgan Stanley's report say they are working to get their merchandise mix right in order to avoid over-stacking sale racks. Much of that involves righting the supply chain, speeding up production and employing analytics to ensure that supply meets demand.

That also means getting the customer experience in stores right, just as in case of Horowitz, which has embarked on a new store concept that is expanding after initial tests.

This year, the retailer will open four new stores using the prototype it runs in select areas and will remodel eight others along those lines.