For some of you, it may be dress-down Friday, so what a great day to talk about jeans. Struggling Levi Strauss may be moving its sewing operations overseas, but now it's trying to regain some down-home charm by moving its denim wares into discounter Target (NYSE:TGT), according to the Associated Press.
Just days ago, Selena Maranjian discussed the private company's expatriate move. Last month, Dave Marino-Nachison explored the business missteps made by Levi's, one of which was to miss a big part of the discount crowd by distributing through Wal-Mart (NYSE:WMT), but not Target.
Despite the fact that this brand's a classic, it's clear that Levi's has in recent years lost its appeal, even though us Americans possess a casual, jeans-wearing psyche that was once personified by the brand. However, it faced competition both in the inexpensive jeans market (think Gap (NYSE:GPS) and its offspring Old Navy), and the higher-end labels like Guess (NYSE:GES) and Calvin Klein, to name a few.
Meanwhile, what does this move mean for Target? While its clothing selection had early success when customers of all demographics swept its racks looking for fashionable but inexpensive threads, there is recent criticism for its lack of a name-brand selection, a move Wal-Mart has made by stocking some brands, including Levi's.
Although investors can't invest in Levi's, it's turned into an interesting story about rejuvenating a once-mighty brand that has gotten a little stone-washed out. These moves may help Levi's get back into the American wardrobe and patch its sinking sales numbers, but the company waited an awfully long time to dress for success.
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