Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/853369
20 S C T / A U G U S T 2 0 1 7 generating comp sales in the high single digits, Griffith says. The chain offers quality clothing at value prices and began offering more promotions some years ago, which has helped sales, he notes. And though Children's Place and Gymboree compete in the same arena, there are distinct differences between them in terms of price, product aesthetic and real estate. Gymboree leans to the upscale and a higher price point, experts say. "Their stores feel more like a J.Crew than [like an] Old Navy, whereas Children's Place presents itself in a more simplistic, stripped- down environment," said Julie Taylor, an executive vice president at San Francisco–based Colliers International. To be sure, there is some overlap, but the two appeal to very contrasting core customers. The Gymboree sensibility has a "sweetness" to its design and marketing graphics, says Taylor. Gymboree stores are a favorite of the mothers of smaller children; these mothers are likely to be going for the cuteness factor or perhaps seeking children's outfits for special occasions. But children grow fast, Taylor points out. "It is difficult to take that Leave It to Beaver sweet sensibility and then transition that to an older child," she said. Children's Place, on the other hand, focuses on the everyday basics: jeans, cargo pants T-shirts and the like. The chain also does a better job of keeping customers as their children grow into older kids or preteens who have a voice in what they wear, because Children's Place design is edgier, more contemporary and more urban, according to Taylor. And though both chains operate in malls, Children's Place tends to locate in value-oriented centers, while Gymboree chooses higher-end lifestyle or street retail environments. Then, too, Gymboree's biggest problem is a crippling $1.4 billion in debt. "The brands that are disappearing are those that are suffering from a lack of connection with the customer [and which are] being exasperated by operational and financial problems," said Taylor. The Gymboree bankruptcy does highlight some of the challenges that children's apparel retailers continue to face in staying competitive, continuing to be relevant and serving customers across both brick-and- mortar and digital channels. "One of the biggest challenges in the sector is competition," said retail analyst Oliver Chen, a managing director at New York City–based Cowen & Co. Customers have numerous options to buy children's apparel online and in a variety of stores ranging from Costco to Dick's Sporting Goods. Children's Place is moving ahead with some strategic-growth initiatives that encompass technology, new distribution channels, store closures and the enhancement of the customer experience online. To begin with, the company has followed through on a "fleet optimization" program it announced in 2013 with the stated goal of closing 200 stores between 2013 and 2017. As of now, Children's Place has trimmed down by 142 stores since that first year and is looking to make it a total of 300 closures by 2020. The company is also concentrating on its wholesale business and on beefing up its international side; with regard to the latter, Children's Place announced in its fourth-quarter report that it was preparing to enter the e-tailing market in China. Boosting its tech platform and improving the related digital experience for the customer remains a high priority. "Our digital experience is key to our personalized customer- contact strategy, particularly when you consider who our core customer is," said President and CEO Jane Elfers during a first-quarter earnings call in May. "Our customer is a retailer's dream: She is a Millennial, mobile mom; she's a digital native who is highly adaptive of and engaged with technology and expects us to provide an easy-to- navigate, modern digital experience." Toward that end, Children's Place is rolling out tech initiatives this year that are aimed at facilitating the checkout process, easing access to accounts and awards information, and providing better product information and personalized recommendations. To wit, the company says it plans to introduce a buy-online, pick-up-in-store capability sometime late in the second quarter and to unveil an upgraded version of its mobile app sometime in the third. Apparently, being best does not mean that one cannot be even better still. n S T O R E F R O N T S