Liz Claiborne to Add Lower-Priced Line

Liz Claiborne Inc. said Monday that it will enter the lower-priced women’s clothing market with new and re-priced lines aimed at both department store and discount store shoppers.

The New York-based designer, known for its higher-priced women’s apparel, said it will introduce a moderately priced Emma James department store line for spring and reposition its Russ brand for mass merchandisers such as Wal-Mart Stores Inc.

“The American consumer is interested in the fashion, style and taste of Liz Claiborne but can’t always afford to pay ‘better’ prices,” said Paul Charron, Liz Claiborne’s chairman, president and chief executive.

Analyst Jennifer Black-Groves of Black & Co. said the changes will make the company “much more of a competitor” and that the lower-priced lines shouldn’t cheapen the image of the higher-priced Liz Claiborne label because they will appear under different names.

Charron said the company has orders for the revamped Russ line from Wal-Mart for spring. He said improved earnings from the changes should be achieved by the end of 1996.

The company said it will market three brands to the “popular-price” segment, with retail prices ranging from $12.99 to $118, through a new Special Markets Division. Among the changes:

* The repositioned Russ brand will target discount store shoppers with a selection of casual separates focused on knits and priced from $12.99 to $24.99.

* The new Emma James label, to hit department stores in the spring, will offer “relaxed-career” and “dressy-casual” apparel selling for $26 to $118.

* A restyled Villager line, featuring relaxed separates for career and weekend wear, will continue to be sold through department stores at retail prices from $26 to $62.

Liz Claiborne has made “considerable progress” in restructuring its higher-priced clothing lines, and “it’s appropriate now to further stretch the organization to capitalize on opportunities that stare us in the face,” Charron said.