Growing Jamesway Kids - children's wear department - Special Supplement: Apparel Merchandising - Company Profile

Discount Store News, Oct 19, 1992

Jamesway is banking on its apparel departments, especially children's area, to strengthen its presence in a trading area that has become increasingly more competitive.

Now in its 30th year, Jamesway is looking to overcome competition from the national chains, Wal-Mart and Kmart, that can be found nerar some of its 120 units. The Secaucus, N.J.-based operation is fighting back with new prototype formats, that include a consolidated, redesigned children's area.

The company has also recently revamped its merchandising team. Paul Roth, the senior vice president and general merchandise manager responsible for the revamped apparel sections, recently resigned, succeeded by a former Alexander's exec, Bob Greenwald.

Despite these changes, Jamesway is still working within the formats that beggan under Roth's tenure.

Its revamped kids department--dubbed Jamesway Kids--had once been two separate units. Now, after the prototype introduction earlier this year, the discounter's boys' and girls' apparel is brought together under one bold marque, a move meant to unify and strengthen the classifications presence in the store. This consolidation contributed to 25 percent total apparel sales increases at the renovated stores.

Jamesway may not be unique in consolidating these areas. Sears', for example, has rolled out its Kids & More concept through the chain, but it nevertheless represents a change from business as usual.

Jamesway Kids relies on visual impact to draw customers into its shoplike format. The prototype format, including wider aisles, is much more visually appealing than former children's wear presentations. Jamesway customers have been very receptive to the new format, so much so that the retailer rolled the consolidated department out to all of the chain's units.

In addition to showcasing boys' and girls' together, Jamesway Kids also uses new-for-the-store display techniques. Folded tabletop displays are used for key items like denim, fleece and T-shirts, ala Gap style. The department also sports toppers and wall presentations.

Clearly, Jamesway hopes to build its children's wear business on core items.

"The fashion aspect is not something we are trying to maximize," says Dave Harris, vice president and divisional merchandising manager, girls, infants' and toddlers'. "We're trying key items as they relate to our customer. We're using colors of the moment."

This approach is part of a plan to bolster children's wear in general. "We are attempting to make the children's business greater," says Harris. "There's more focus than in other stores in general. We're paying attention to them--we concentrate on each use of wall space. We concentrate on the fundamentals."

While the department is starting to do well, Jamesway Kids is not an isolated success story for the discounter. Apparel and hard goods have been updated chainwide, and shifts in buyers and merchandise managers have been made over the past few months.

But the discounter still isn't sailing smoothly. Total sales for the first 26 weeks of the year were $386.7 million compared to $381.4 million in last year's corresponding period. That's an increase of only 1.4 percent. Same store sales were down 2 percent.

Pumping up its apparel areas also involves looking at weak spots such as Jamesway's private label program. At less than 5 percent of its children's apparel sales, the discounter intends to step up the development of private label programs to bolster its bottom line.

Nevertheless, brands will continue to be strong for the retailer--with Gitano and Sasson its top players. Jamesway is looking for its private label program to reach 10 percent to 15 percent.

The discounter's current in-house program consists of several smaller labels that are being evaluated and may be eliminated. Instead, the chain will may opt for an umbrella label that would give the department and the store a total private label brand identification. Using Jamesway Kids as a private label is just one of the names the retailer is considering.

The newly revamped Jamesway Kids area isn't all that been restructured at Jamesway. While the children's area has been consolidated, buying responsibilities have been divided. Harris' new responsibilities join his previous ones of intimates, foundations, accessories and jewelry. Jerry Finestone, long time divisional merchandise manager of men's, has been given responsibility for boys' wear as well. Greenwald, who was originally hired to take on Jamesway's women's sportwear division, has not yet been relieved of these duties.

The new team is in the process of stepping up its marketing efforts. After attempting to offer its customers the best possible quality within their budgets, plumping up its advertising is its next step. Jamesway is promoting the department as a total kids' world, and advertises items representatives of the entire department. While there is some TV and radio spots used, weekly circulars are still Jamesway's most common advetising vehicle. The circulars, mostly direct mail pieces, are also regional inserts in some papers.