Crain's New York Business

By Adrianne Pasquarelli

This Thursday, Bloomingdale's will salute our troops. Or, at least, the department store chain will debut new window displays at its East 59th Street flagship chock full of the latest apparel trend exploding across the nation-the military look. Inside, the store's racks will be awash in army greens and olive drabs, including everything from cargo pants to utility jackets to camouflage-printed T-shirts.

"Starting April 1, our whole store in ready-to-wear will turn into an ode to olive drab," says Stephanie Solomon, fashion director at Bloomingdale's.

The upscale department store isn't the only retailer joining the army. Big chains like J. Crew and specialty shops like Intermix and Olive & Bette's are featuring masculine military looks paired with feminine touches and fabrics. To a lesser extent, the trend is also popping up in menswear.

It has been nearly seven years since the last time cargo pants ranked as a fashion must-have. But last fall, the styles were popping up on runways, and now they're hitting store shelves. Retailers expect the utility-wear and cargo pants to attract shoppers recovering from the recession because they are expected to remain fashionable through next year, providing added value.

"It's something to invest in," says Colleen Sherin, fashion director at Saks Fifth Avenue. "This trend will carry into the fall and winter season and has some longevity."

Overall, retail sales are on the rise-same-store sales in February increased 3.9%, on average, over last year, according to Kantar Retail. Yet after suffering through the recession, companies want all the help they can get from versatile, long-lasting looks that are on trend.

To avoid being too edgy, stores are pairing the aggressive, masculine looks with more feminine fabrics such as chiffon and organza. J. Crew, for example, advertises olive cargo pants paired with a ruffled blouse and chunky necklace in its spring catalog, and Banana Republic, which is returning to its roots with military and safari styles, is showing the pants with heels.

Designers such as Nanette Lepore and Tory Burch are also embracing the style, with ruffled army-green tops, while Oscar de la Renta is selling a 1930s-style dress in green. Even leather manufacturer G III Apparel Group, which uses mostly black leather, has worked in a military color palette to include more browns and khakis this year. Of course, experts caution that shoppers (and stores) should not go overboard with such styles.

"You just need one piece-you don't want a head-to-toe look like you just got out of basic training," says Christene Barberich, editorial director at Refinery 29, an online store that also provides fashion commentary.

Aside from offering longevity as a wardrobe staple, experts say military clothing is attractive to shoppers for the message it sends.

"Right now, the consumer is fighting for her job, her health care. She's going to battle, and she wants apparel to give her a tougher look," says Jamie Ross, creative director at trend analysis firm The Doneger Group.

While cargo pants will never replace jeans as the bottom of choice, retail experts say the items could chip away at denim's stranglehold. U.S. jean sales have stayed strong during the recession, inching up 3%, to $13.7 billion, for the 12 months ended in January, while all other adult bottoms fell 8.8%, to $22.8 billion, for the same period, according to retail research firm NPD Group Inc.

Even some denim brands, including J Brand, Paige and Guess, have begun offering their own twill cargo pants, in shades of khaki and green, to capture the trend-seeking consumer.

"Non-denim is the next step in the bottoms evolution," says Ms. Ross. "We've been so denim, denim, denim. Utility looks much more interesting."

Cargo looks selling

At Olive & Bette's, which has four Manhattan boutiques, cargo-inspired looks are already selling well, in fabric alternatives including silk and linen. After a rough 2009, owner Stacey Pecor says sales this spring are rivaling those of 2008. Last year, the company's revenue was around $13 million, a 27% drop over 2008. Ms. Pecor expects 2010 to pick up even more, thanks to popular military looks.

"When shoppers open up their closet and see a sea of denim, they want something else, but still crave the comfort that denim has offered," says Ms. Pecor. "That's where the cargo pant comes in."

But army looks are not made to order for every retailer. The extra pockets and slouchier pants could alienate some Ann Taylor customers. The career-oriented clothier offers a few such items now, but plans to make military a mainstay this fall.

"An Ann Taylor shopper is not a very edgy, fashion-forward customer," says Sapna Shah, a principal at retail consultancy Retail Eye Partners.