Fashion, apparel, textile, merchandising, garments

1. GLGi: Increasing Utilization and Strength of Private Label Brands Tuesday, July 31, 2007 New York

7. Private Label Market Share Source: adapted from Cotton Inc.

10. Decline in Retail Prices From 1996 to 2006, the average retail price declined a minimum of 9% Source: adapted and expanded from Cotton Inc. winter 2003 -6.1 Shirts/Dresses -11.2 Other -16.3 Sweaters -4.2 Off-price -8.1 Shirts -7.5 Mass merchant -12.6 Sweat Apparel -5.8 Specialty -4.9 Shorts -9.0 National Chain -11.7 Slacks -13.7 Department -5.5 Jeans -8.9 Total -8.9 Total % Change Retail Channel % Change Product

14. Key USA Retailers *Sales in billions include all private label & exclusive products Macy’s percentage includes 18% private label and 15% exclusive merchandise Target Macy’s Wal-Mart Kohl’s JC Penney Retailer $59.5 $27 $312.4 $15.5 $19.9 2006 Total Sales 32% 33% 40% 35% 50% Private Label % to total sales $19.4 $ 8.9 $124.96 $5.42 $9.95 Private Label Sales in USD *

24. Appendix 1 Retail Price Comparison Average price gap 37% based on quality equivalent categories Average price gap 21% based on national brand’s quality is perceived to be less than private label brands. 30-39% $45-55 GM 50-54% Nautica Men’s Polo $34.50-42.0 GM 58-68% Alfani (Macy’s) Men’s Polo $16 – 40.00 GM 40 – 48% $19.68 GM 45-48% $158-178 GM 48-56% Retail $ Gross Margin 20 –25% 37% 37% Price Difference betw. Brands National Brands Retail $ Gross Margin Private Label Brands Dickie’s, Shady’s & etc $ 16-28.00 GM 60-62% Sonoma (Kohl's) Menswear Levi’s Denim For Wal-Mart $10.77-14.42 GM 38-54% Faded Glory (Wal-Mart) Denim BCBG Dresses $79-129.00 GM 60-69% INC (Macy’s) Dresses

25. Increasing Utilization and Strength of Private Label Brands New York July 31, 2007 Boston August 1, 2007