Coordination key to kids' apparel

Discount Store News, Jan 3, 1994 by Jamie Sorcher

As 1994 begins, discount retailers are implementing strategies to increase the business in their children's clothing departments, ranking merchandising presentation as the most important tactic for success in 1994.

Although specific presentation methods may vary from store to store, the objective is the same--to maximize sales and increase profits.

"The most important influence on how merchandise sells is definitely how it's presented on the floor," said Gila Dweck, president of EJ Kids, the children's wear spin-off of Gitano. Dweck noted that a line's execution can sometimes fall apart at the store level, a fact of life that has prompted Gitano to work more closely with retailers, providing more collateral materials about new merchandise and how to display it.

According to Dweck, customers today want greater ease in coordinating complete outfits and accessories in one department. "Tying in accessories to go with our products completes the whole outfit. The consumer doesn't have to go to three different departments or shop around for socks, hosiery or accessories."

Kids Central USA, the new juvenile products superstore developed by Service Merchandise, has taken this one-stop shopping concept to its extreme. Kids Central stores bring together under one roof everything a parent needs for a newborn to a 6-year-old child. Greg Winnett, vice president, community relations for the Nashville, Tenn.-based mass merchant, said Kids Central stores range in size from 34,000 sq. ft. to 60,000 sq. ft., each stocking more than 20,000 skus.

"We have everything from clothing to accessories to hard goods, including bedding, toys and learning aids," said Winnett.

However, even retailers that have not opted for the everything-under-one-roof experience can achieve the cross-merchandising benefits inherent to the children's apparel business by improving their departmental signage and visuals.

Bruce Katz, president of Sasson's Andover children's division, noted that "in-store location is important, certainly, but even more so is the department fixturing.

"When the customer walks into a store, the retailer should be making a lifestyle statement, telling the customer a story. Fixtures must allow the consumer to walk in and easily read what you're telling her."

Face-outs or quad racks, with the ability to show the product, are best--as opposed to circular racks where only outseams and sleeves are visible, he added.

Katz cited the Gap Kids stores as an example of successful merchandising that can even be viewed from the street. "If you're in a hurry, you appreciate the fact that you can tell what is going on inside," he said. Many customers are not just budget-conscious, but time-conscious as well, he added. "They want to shop without having to go pi through racks."

Stuarts, the New England-based discount department store chain, has reaped the rewards of changing its floor layout and moving children's apparel to the front of the store.

Divisional merchandise manager of men's and children's Matt Sudhalter explained that customers used to walk into Stuarts and find the jewelry, men's and ladies' departments up front. Today, the girls' department is positioned to face customers head-on, with the infant/toddler department right behind, followed by men's on the left and boys' directly behind that.

"We keep things simple with categories that lend themselves to each other near each other," said Sudhalter. "And one thing we're continuing to do within all our departments is feature Special Purchase items--off-price buys, overruns, things at phenomenal prices."

While discount retailers believe they can boost their children's business with more effective merchandising displays, they are not counting heavily on licensed products in 1994 to drive departmental sales.

"There are very few strong lasting licenses," said Winnett of Service Merchandise. "We went through a period in the '80s where licensing became the backbone of merchandising and marketing. Those days are long past."

Sudhalter of Stuarts agreed that while the discounter presently carries a lot of Barney products and team sports logo merchandise, movies and TV characters are still areas in which a retailer can get burned.

"An individual movie is not as meaningful as it once was in the days of Star Wars," he said.

On the other hand, technology is gaining in importance as most retailers and suppliers join into Quick Response-type relationships. Kmart, the nation's second largest discounter, uses EDI to pinpoint key core items, said divisional vice president Gary Robson. With pricing and merchandising the hot areas to focus on, Kmart must rely heavily on technology to provide a steady flow of inventory, to evaluate the sales of new items and to give buyers more open-to-buy flexibility, noted Robson.

No matter how highly retailers rate merchandising display, allegiance to price remains a major issue.

"Being a discounter, price is very important," said Sudhalter. "We can never lose track of the price situation because that is ultimately what our customer is looking for. If merchandising is concern No. 1, then pricing is No. 1A. They're nose to nose in importance."