BARGAIN HUNTERS

In tough times shoppers turn to the bargain bin, and a group of clothing merchants in Las Vegas for fashion week hope retailers will do the same.

The Off-Price Specialist Show, one of the most overlooked pieces in a collection of clothing shows that make twice-annual pilgrimages to Nevada, is where discounters flock for the latest in low-price clothes that will hang on sales racks, pile up in bargain bins and appeal to consumers who feel light in the wallet.

The show is made up largely of exhibitors, called "jobbers" in industry jargon, who scour the planet for overruns, unsold past-season items and other stock they can acquire for as much as 70 percent below wholesale prices.

They resell the merchandise to discount stores, independent small retailers and even higher-end stores that find something customers might want at a price that allows for a consumer discount or greater retail markup.

Organizers say the show comprises about 450 exhibitors, uses about 100,000 square feet of space at the Sands Expo and Convention Center and attracts about 10,000 people.

Exhibitors and buyers couldn't say for sure the whether the struggling economy was driving more business for discounters, but they all agreed that it should.

"Why spend $40 when you can spend $20?" said David Riback of Montville, N.J.

Riback is a third-generation off-price specialist and said the industry tends to do best toward the end of an economic down cycle.

That's the time people once again feel like they have money to spend but still feel the burn of the previous slump and will hunt around for bargains.

"As (the economy) tends to pick up, we pick up faster," he said.

The off-price show is one of many clothing-oriented shows that attract tens of thousands of conventioneers to Las Vegas for an unofficial "fashion week."

MAGIC, formerly the Men's Apparel Guild in California show, is the catalyst. It ran Monday to Wednesday at the Las Convention Center.

The twice-annual show attracted more than 100,000 people last August and has spawned numerous offshoots, including MAGIC Man, S.L.A.T.E., Streetwear at MAGIC, ECollection at MAGIC, WWD MAGIC and Sourcing.

In addition to the off-price show that ended Tuesday, the Sands was hosting about a half-dozen other clothing-related events.

Although the number of clothing conventions in Las Vegas has risen of late, the nation's dour economy is sucking much of the energy from the fashion industry, especially at the retail level.

MAGIC has cut its convention from four days to three and retailers are holding off on placing orders for the upcoming seasons until as late as possible.

"With the difficulties in the economy, stores seem to want to buy closer to their needs ... rather than buying six to nine months ahead," Donald Leavy, vice president of sales and marketing at Vintage Paris, told the Reuters news service.

At the off-price show there were still plenty of hopeful buyers and sellers, though.

Andy Shamsi, president of Cosmo Trading Inc., said the trick is finding quality products that, for some reason or another, are available for a lower price.

Shamsi, who doesn't deal in name brands, pointed out a rack of trendy, gray jeans. The jeans were originally produced for sale in Old Navy stores to sell for about $40 retail.

But the company didn't want them all and Shamsi was able to acquire the leftovers from the factory, which covered up the Old Navy logo on the tags. Shamsi was selling them for $6.75 per pair.

"Now it doesn't say Old Navy, but people can see the same value," Shamsi said.

He said he has been in the business 14 years and that it remains strong, but he said macro-economic factors do impact his bottom line.

A supplier in India recently requested payment in that country's currency, the rupee, instead of American dollars, Shamsi said. The request didn't change the list price for the product in India, but it cost Shamsi because the dollar is trading near all-time lows against other currencies.

The weak currency is a reflection of the state of the American economy, but the impact is mitigated in the off-price industry.

"When business is slow it affects everybody," Shamsi said. "On the other hand ... people need clothing no matter what; this is when they look for bargains."

Contact reporter Benjamin Spillman at bspillman@reviewjournal.com or 702-477-3861.