The retailers – big or small – have by now understood that the only way to survive this pandemic is to revamp the business strategies.
The Children’s Place, which is North America’s largest pure-play children’s specialty apparel retailer, too has explicitly stated that it is putting efforts to structurally position the company for continued success.
There’s no other way especially after a disappointing first quarter that ended 2 May 2020!
The net sales in Q1 have slumped by a huge 38.1 per cent to record US $ 255.2 million from US $ 412.4 million achieved in Q1 of the previous year.
It was expected considering several of its stores were temporarily shut down ever since the pandemic gripped the world at the start of the year.
And now, restructuring is what the retailer is focussing at! The company aims to keep its focus on its fleet optimisation initiative that started a decade back, and also on digital business, which is on the rise.
More on this, Jane Elfers, President and CEO, The Children’s Place, said that as a plan of its fleet optimisation initiative, the retailer intends to shut 300 stores by the end of fiscal 2021 – 200 by the end of this year and 100 in 2021. This is expected to significantly bring down firm’s reliance on physical stores.
Importantly, half of the first set of closures planned for this year will come by the end of July 2020.
The Children’s Place also intends to continue its focus on digital business. There have been huge investments on company’s digital business in last 3 years and it is expected to be same going forward. The digital sales, notably, shot up by 300 per cent in the first quarter.
Jane added, “We believe that our long-standing transformation strategy has prepared us well for these uncertain times. As demand for our essential children’s apparels continues to surge, our omnichannel advantages are clear; quarter-to-date, our consolidated sales are up positive low double-digits, with on-line demand up by 300 per cent, while approximately 95 per cent of our stores remain closed. We are planning to have the majority of our stores reopen by 1 July.”
The company designs, contracts to manufacture and sells fashionable, high-quality merchandise at value prices, primarily under the proprietary ‘The Children’s Place’, ‘Place’, ‘Baby Place’ and ‘Gymboree’ brand names.