Kids' domestics get attention

Discount Store News, June 21, 1999 by Mike Duff

Kids are a hot ticket in bedding, and things should get hotter in the segment this fall with the arrival of Martha Stewart Nursery Basics.

Despite the stiff competition that awaits them, Martha Stewart and Kmart will have an important advantage: the thriving Sesame Street baby juvenile domestics business. Vendors and retailers have demonstrated a growing regard for both baby and juvenile domestics, particularly bedding, recognizing them as an important business that has significant potential for growth.

Both Kmart and Martha Stewart have been keeping a pretty tight lid on the new baby line. "It's being introduced in the fall. There's no formal announcement at this time," said Kara D'Esopo, a Martha Stewart spokesperson. Steve Ryman, divisional vp and brand director for Martha Stewart Everyday, said discussing the baby program would be premature But he added, "It will be launched in October."

Actually, the first Kmart executive who violated the rule of silence about Martha Stewart Baby was none other than chairman Floyd Hall, who told an audience at the company's recent annual meeting that Martha Stewart Nursery Basics will include crib sheets, blankets and bumper pads, among other items.

A Springs Industries executive told DSN that Springs and Riegel would split Martha Stewart baby domestics, with a third company doing a separately organized gift business.

[Riegel] has open stock; we're doing add-ons," said the executive. "A better way to describe it is to say that they are doing coordinating bedding and we're doing some basics."

Both Riegel and Springs already are Sesame Street licensees.

Kmart has a strong presence in kids' bedding. At a Big K in Garden City, N.Y., Kmart's juvenile bedding was positioned in 24 ft. of space dropped right into the middle of the Martha Stewart section, creating quite a contrast with its bight colors and license-dominated graphics. Among those licenses, Star Wars naturally had a high profile along with Barbie, A Bug's Life, Lion King and Rugrats. A Star Wars twin-sized comforter retailed for $27.99

Baby bedding was located across the store in association with Sesame Street apparel and shared a 20-ft. aisle with infant and toddler furniture. Besides Sesame Street, licensed labels included Looney Tunes, Gerber Children's, Mickey for Kids and Pooh. Non-licensed brands included Dundee, and Bedtime Originals. Pooh comforters were listed at $18.99.

Lorna Nagler, Kmart's divisional vp for infants, toddlers and children's wear, said the company continues to build its Sesame Street domestics business with a goal of making it ever more distinctive.

"Currently, those not are among the items that are exclusive," she said. "Sesame Street is something we look at as a companywide brand, however. And in any category where we are nonexclusive, our goal is to work with the manufacturer on developing exclusive patterns for Kmart."

Despite strong prospects for Martha Stewart's baby line, given her past history and the business built by Sesame Street, competition will be stiff, and it comes from many sources. Specialists such as Kids "H" Us and Gap Baby and newcomers such as Seaman's Kids have strong followings among mass market consumers. But the competition doesn't end there.

Target, for one, has a strong and stylish baby presentation and makes a big pitch in juvenile, as well. At a College Point, N.Y., Greatland store, Target's baby and juvenile soft lines are both adjacent to toys, giving them a natural hook. The baby department is set diagonally across from toys on a main aisle and includes bottles, bibs and other infant necessities. Baby domestics include two private labels, Lullaby Club--which places those products under the banner of Target's baby registry service--and Honors. Cherokee, Target's exclusive label, also is found in the section, as well as products from Fisher-Price, Looney Tunes and Pooh. A Pooh comforter sold for $19.99, while Honors comforters retailed from $21.99 to $17.99.

Juvenile bedding also was located catercorner to toys across the aisle from baby and at the rear of the bedding section. It was positioned on 28 ft. of wall space.

Licensed products dominated the section, including Star Wars, Mickey Mouse, Barbie, Rugrats, Hot Wheels and Looney Tunes, but a few nonlicensed patterns were in evidence as well, with sports and dinosaur themes. A Ballerina Barbie pillowcase--a Bibb product--sold for $3.99, while a twin comforter under the license was $24.99. Pillowcases and comforter under the Star Wars license, manufactured by WestPoint Stevens, and Pooh, made by Springs, carried the same price points, as did Barbie.

But it isn't just the nationals that are challenging for the kids' business in domestics. Bradlees identifies kids' domestics as an important growth opportunity, said president and cmo Bob Lynn. As is the case with other discounters the business is split, he said.

"Juvenile products are in domestics, and infants are in Infant's World, where we go from diapers to layette to kiddy products/toys to apparel. Apparel is what we want to drive," he said.