Baby boutiques born again - children's clothing departments - Children - Special Supplement Discount Store News: AM

Discount Store News, Dec 9, 1991

Look, there in the store, it's Super Baby. No, it's Super Baby Boutiques. Maybe this merchandising phenomenon is not as amazing as some cartoon heroes, but sales generated from these all-in-one baby sales centers are certainly adding muscle to layette, infants and toddlers.

The idea of a multi-classification children's wear department is not new. Juvenile hardgoods, such as strollers and cribs, have long been merchandised near gift packs and newborn or toddler clothing. However, retailers are revamping and expanding the areas.

Changes include:

* New fixtures

* New real estate

* Wider aisles

* Broader assortments

There are big dollars behind these decisions. As a whole, the infant/toddler and preschool market rang up $18.8 billion at retail in 1990, according to Packaged Facts, a New York-based research firm. That total encompasses sales for clothing, baby care supplies, juvenile furniture, nursery accessories, toys and baby feeding supplies. Apparel sales accounted for about half of the sales for the category.

A steady birth rate has contributed to the category's success, and infant/toddler is currently the best trending children's wear category for most discounters and mass merchants.

Much of these sales are due to gift giving. Between 40% and 50% of layette sales are estimated to be generated by gift shoppers. Also, mom may be holding off on the new dress because of economic pressures, but baby, well, that's another story.

These factors are prompting some retailers to create specialized store-within-a-store infant departments. Other merchants are taking smaller steps by cross merchandising a number of infant/toddler products.

Sears has perhaps been the most aggressive among mass market retailers in this area through its Kids & More program. Though this department includes all children's sizes, the infant/toddler portion is given special attention. Understandable, since it has been reaping the biggest sales.

"Our sales in this area (infants and toddlers) are excellent and have been leading the children's categories," reports Gary Ramsey, national merchandise manager, children's wear.

Part of Sears "power format" program, Kids & More departments are in 112 Sears locations. The areas are bigger than past children's wear sections and sport increases in skus, new fixtures, improved signage and a play area.

Though currently limited in scope, many elements of the new format have been incorporated into older Sears units.

"Where possible, we increased space for the department about 20% to 25%. In a few instances, space was increased as much as 60%," Ramsey says.

In the new format, Sears has emphasized OshKosh and its own McKids line of apparel, while expanding the selection of specialized hardgoods such as baby beds and strollers. "We alos put in special fixturing to showcase Levi's baby brand and Bugle Boy," he reports.

Another change which came about as a result of Sears market research is the placement of maternity clothes next to the infant department. "Our customers were telling us that they wanted to shop away from regular clothes sections," Ramsey says. With baby on the brain, Sears' merchants are hopeful that the adjacency will encourage more children's wear sales as well.

Sears is, of course, not alone in its efforts to capitalize on the baby boomlet. Kmart has also been aggressive in its infant/toddler area, especially in its newer prototype stores. These feature enhanced "power" departments that capitalize on increased space and on cross merchandising through bordering classification adjacencies.

In the newer Kmart units, the infant/toddler area is new next to the toy department. In addition, Kmart's new prototype stores have small plush figures and pre-packaged baby toys next to the baby clothes. The design of the new stores are meant to encourage mom to step right into the toy department after looking at the baby sheets.

While not in the league of Sears of Kmart, Jack's, Quincy, Ill., a small midwestern discount chain, has also made strides in nurturing this market.

Dave Daniels, president, Penn-Daniels, parent of Jack's, notes that cross merchandising certain items can make a difference. "Our margins are very good on all our children's items, but we are planning some improvements," he says.

Already, hardgoods are positioned next to toddler apparel. One of the things that will ehance the baby section at Jack's is the addition of diapers.

Diapers are now in a separate area but will soon be moved into the baby section. Once the diapers are placed near this area, Daniels expects the traffic flow to boost apparel sales.

In designing these areas, fixturing options are an important consideration. While some hanging presentations of clothing are possible in the toddler age group, most apparel items in the layette section are packaged. In fact, that rule of the game seems to be to keep it neat.

Specialty retailers in the children's area, most notably Kids 'R Us, use a great number of rounders in their presentations, even for smaller size apparel. But, the key for most discounters that don't have the space is to maximize the floor. Pegboard and gravity-fed displays are used extensively.