Forman Mills, a New Jersey-based discounter of name-brand apparel, is expanding into the Baltimore-Washington market to fill what it sees as unmet demand in low- and moderate-income areas for low-priced clothing bearing labels that shoppers won't find at Wal-Mart.
Forman Mills will open the first of up to four mega-stores in the Baltimore area Aug. 8 in a former Kmart on U.S. 40 in Catonsville, a company executive said yesterday.
The regional retailer, which runs 14 stores in three states, is expanding in part because of the deals available on store locations left vacant by the many retailers that have shut down or closed stores over the past few years, such as Caldor, Ames, Bradlees, Hechinger and Service Merchandise, said Richard Forman, president and chief executive of the chain.
While some of those names have disappeared from the retail landscape because of intense competition, Forman says, his chain is thriving and expanding by targeting an under-served niche, often venturing into the more neglected parts of inner-city neighborhoods, offering vast selections of men's, women's and children's apparel and including brand names traditionally not carried by the nation's big discounters, Wal-Mart, Target and Kmart.
Forman Mills stores, in urban areas in Philadelphia, in north and south New Jersey and in Delaware, had sales of $105 million last year.
Forman said the chain sells either slightly irregular or excess merchandise from manufacturers such as Adidas, Calvin Klein, Levi's, Nautica and Tommy Hilfiger at 50 percent to 80 percent off the regular retail price.
"We go to the factories, overseas, we go anywhere and anyplace we can get a deal," he said. "We're a true outlet for branded product. We overwhelm them with the quantities. If we can get them in the door, there are very few people that will not buy."
Forman said one of the retailer's specialties is venturing into the more forgotten, urban areas.
"There's lots of opportunities there," he said. "I look at it like the wild, wild West out there."
The company was able to take over the lease on the 125,000- square-foot former Kmart in Catonsville, a store the size of two football fields that will employ about 100 people, through an auction held earlier this year by the distressed Kmart chain.
