Kids 'R' Us' new THREADS - Kids 'R' Us Co.'s Threads, children's clothing brand name - Children - AM: Apparel Merchandising - product announcement

Discount Store News, Sept 2, 1991

Kids |R' Us' new THREADS

"We're just getting our feet wet," is how Michael Searles, president, Kids "R" Us, describes the chains' first serious foray into private label apparel. In January, it introduced Threads Clothing for Kids.

In true Kids "R" Us fashion, however, |getting its feet wet' means a savvy presentation and a complete line of children's clothing that is a combination of updated colors and styles at price points a mother could love.

Kids "R" Us has based its entire concept, and has credited its success, to offering value on well-known national brand names. With the introduction of Threads, it has expanded its scope and has also taken on new competition. The Gap Kids and Benetton 012 have been providing colorful direction for the children's market the last few seasons. Searles hopes to capture the attention of that same style-conscious parent with the new line.

Threads was introduced in January in 50 select Kids "R" Us stores. According to Searles, the chain, which nationwide has 180 units, chose these particular 50 because of their "higher income demographics."

Indeed, the presentation and the construction of Threads apparel are designed for a very discerning customer. "We thought that we could attract the same type of customer that shops at the Gap and wants that kind of product for their kids," Searles says. "We're attracting a parent that wants quality 100% cotton and is willing to pay more for it." Point-of-sale material on the line emphasizes classic styling and the natural fiber content.

Though the retailer is looking for a customer that will spend more money for these qualities, value remains a key component of the Kids "R" Us agenda. For the most part, Threads clothing ranges from $9.99 to $24.99.

"Our goal is to be 10% to 20% below Gap prices," Searles says.

The line includes casual apparel for both boys and girls in sizes 2T to 6X/7. Knit and woven tops, bottoms and some outerwear pieces in both solids and prints are featured in the line.

Like its higher-end counterparts which rely on quick turns and quick color changes, Kids "R" Us will update the line and infuse new products into the stores four to five times a year.

Searles is careful to emphasize that the original Kids "R" Us strategy has not changed. Brands, which helped the retailer reach $580 million in sales and $29 million in pre-tax profits in fiscal 1990, are still the cornerstone of the business.

"This is really our way of pursuing a piece of the business that we felt we could execute well, while still providing our customers with quality products and value," he notes. Growth is definitely in the future, but Searles expects a roll out to other stores to come slowly and carefully.

As much a part of the Threads line as the clothing itself is the fixturing that is featured for the line in all of the stores that carry the label.

Wooden tables showcase colorful folded merchandise and grid displays feature complete outfits. An overhead sign that is more subdued than the primary colors incorporated into the store's logo call attention to the department. In most of the 50 stores that currently feature Threads, the line is an area unto itself, while most of the other apparel is separated into sizes.

A point-of-sale postcard for shoppers explains the concept of Threads as a line "designed with the attention to detail and fine fabrics that you've always wanted for your child, but could never find at reasonable prices." The card also features a sizing chart that helps parents determine the right size based on a child's age, weight, height and waist.

The stores featuring the special Threads department are all over the country, including one in Nashua, N.H. According to Searles, this New England location has the distinctive Threads fixturing as well as a brighter atmosphere.

That Nashua unit has new lighting, another test program for the chain, Searles reports.

"The light level at that store is about 25% brighter than our other stores. We like to think we have the brighest stores in the industry; this one is even more impressive," he says.

Kids "R" Us is planning to open nine to 14 additional units in 1991. Sixteen stores have already opened this year. New markets for the chain include Missouri, Texas and Utah. These additions show a westward trend. California, for instance, currently has 24 stores, and is one of the states that is carrying the Threads line.

As with many its other efforts, the Kids "R" Us introduction and expansion of Threads is sure to be a benchmark that others will measure themselves against.

PHOTO : Threads, in 50 units so far, represents Kids |R' Us' first foray into private- label merchandising. However, the chain will not de-emphasize brands.