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Manufacturing Industry

TSI built to win

Bobbin, Jan, 1999 by Kathleen Desmarteau

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As Lightman explains: "We created an environment- which is being rolled out right now to 500 doors and soon to 1,200 doors that fundamentally concentrates on casual slacks, whereas in the past Wal-Mart had shirts, accessories and maybe even underwear mixed into its casual slacks area. ... We also suggested, and they agreed, that we run some new products that are a little more updated and with the market. ... It's been so successful that we have now put in two prototypes in Puerto Rico, and we're doing a five-store test in Wal-Mart Mexico."

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While it was no easy feat to coordinate such a project with the world's largest retailer, TSI had the prototype in-store shop ready to go for Wal-Mart in an amazing two weeks. Going forward, in addition to working with Wal-Mart to design the shops' layouts, fixtures and signage, TSI also is advising the retailer on what other products should be included in the shops, in addition to Farah brand pants.

Reflecting on the success of the venture, Lightman says wholeheartedly: "We got this opportunity, and it was something we knew we would have to illustrate to Wal-Mart quickly. ... That's the reason we're the No. 1 private label resource in this country - our intensity to grow the business."

Likewise, Domino concludes: "We have a mentality in this company that we can do anything we want to do. ... We're not going to stay a half-billion-dollar company. We're going to get much, much bigger. That may be through acquisitions or other means, but we are going to grow our business."

INSIDE TSI

COMPTON PUTS EXPERIENCE TO WORK

There's no question William "Bill" Compton, chairman and CEO of Tropical Sportswear Int'l. Corp. (TSI), has paid his dues in his long career in the apparel industry - and now he is fully applying his years of experience.

In 1968, the Idaho native, then working as a crane operator, joined the ranks of the apparel industry as a men's slacks sales trainee with the promise of getting a territory of his own. The company was Farah Inc., and the job lasted some 18 years, culminating with Compton manning operations as president. When the Farah family decided to take more of a controlling role in running the business in the mid-1980s, Compton bowed out gracefully in 1986, having led the firm to sales of $392 million and stock trading at $28 per share.

He went on to tackle a series of turnaround projects, including management of five Faberge apparel divisions, leadership of golf wear legend Munsingwear and finally acquisition of his own "baby," Tropical Sportswear, which he purchased in 1989 in partnership with savvy apparel industry financier Michael Kagan, whom he had met at Munsingwear.

As an interesting aside, while he was president of Farah, Compton also founded an El Paso, TX-based bank in partnership with Mexican businessmen Eloy Vallina-Laguera and David Garza. The successful venture, established with brilliant insight in pre-NAFTA years to service U.S. companies that wanted to do business in Mexico, was sold several years ago to Norwest. Still a close business partner of Compton's, Vallina is the largest single shareholder in TSI, holding some 20 percent of the firm's stock, and serving on the board of directors.

Manufacturing Industry

TSI built to win

Bobbin, Jan, 1999 by Kathleen Desmarteau

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