Growing boom babies spur children's biz - children's clothing sales at discount stores; includes related article on Nintendo licenses for children's apparel

Discount Store News, Jan 23, 1989 by Pamela Krein

Growing Boom Babies Spur Children's Biz

Discount stores across the country are reaping the benefits of the baby-boom population growth of the past few years which is pushing more kids out of infants' and toddlers' and into children's wear.

The children's wear category has traditionally been a strong one among discounters. Many parents who might not shop a discount store for themselves will shop at discount stores for their children, wanting to pay low princes for apparel that will soon be outgrown.

And, while the current boom has produced smaller families than the original baby boom did, parents and grandparents appear to be spending a higher amount of dollars per child. According to the New York-based market research firm Packaged Facts, the retail market for children's products rose 7.7 percent in 1987 and exceeded the $15 billion mark in annual sales. The firm estimated that sales in 1988 exceeded $16 billion, with apparel accounting for nearly half of this amount.

The research company said several factors are contributing to the spending increases, including greater disposable family income because of dual-income couples, and "The Daddy Syndrome" that prompts working mothers to spend more money on their children in an effort to make up for time away from home.

Discounters and children's wear manufacturers tend to agree with many of these findings, citing their own increased sales in the category. Most predict that spring will also produce similar results.

At New Castle, Pa.-based Fishers Big Wheel, there's "no question" that children's wear has been strong, noted Eric Flodberg, vice president and general merchandise manager of apparel. In fact, children's wear sales grew between 15 percent and 19 percent over a year ago. The department is Flodberg's "No. 2 growth area" after men's.

Flodberg said much of the category's sales increases can be attributed to divisional merchandise manager of boys' Tom Via, formerly of Gold Circle. Flodberg said Via has "really helped in putting the area in the right direction." Flodberg himself has devoted more buying dollars and promotional space to children's wear.

The chain has also taken on new resources and is now trying to be quicker to jump on trends. "A lot of things were perfected," Flodberg said.

Other discounters agreed that having the right fashion trends is key to strong sales. As Dick Gully, vice president of men's and children's wear at Hills Department Stores, noted: No matter what the demographics are, "there is reasonable business out there if you have the right items."

Also, many consumers are also turning toward better merchandise, according to Joe Ettore, senior vp and gmm of soft lines at Secaucus, N.J.-based Jamesway.

"Customers may be buying fewer items, but they're not afraid to spend more than they have in the past," he noted.

Many of these right items continue the more adult-looking fashion focus of the last few years, while also including carefree child-like looks. Hot styles, advertised heavily at Minneapolis-based Target during the holiday, included character print tops, fleece sets with screen prints, patches and embroidery for both girl's and boys' wear.

At Canton, Mass.-based Hills, Gully said the discounter did especially well in girls' with domestic wool coats, three-piece weekend sets consisting of a fleece top, pant and skirt, and skeggings--a combined skirt and legging. In boys' wear, sales were especially strong in casual pants. Overall, boys' as a total category actually outperformed girls', he said.

Fishers Big Wheel found success with Osh-Kosh products and sweaters with embellishments and treatments--that while at a higher price point than normal, quickly sold out in the stores.

Heading into spring, Flodberg said Big Wheel will "take what we learned from fall" and carry it forward. "If it's there [hot] and it's important, we'll have it."

At New York-based S.E. Nichols, the chain will be more promotional minded, particularly with girls', according to senior vp and gmm Ed Denenberg. While boys' has been strong over the past few months, Denenberg said girls' has been somewhat slower, reflecting the sluggishness of the women's business.

Hill's Gully said the chain's spring direction in children's wear includes Lycra bike pants, capris and selected neon treatments. For Easter, which the chain is putting more emphasis on this year, Gully expects dressy dresses to be important for girls', while boys' are expected to be strong in suits.

"We anticipate a pretty good season because there is a lot of newness out there," he commented.

Children's wear manufacturer Gitano said spring's newness in girls' should include jean shorts with inserts and patches of surf, fish or bold colorful prints, plus sportswear in animal and geometric prints.

According to the company's director of children's merchandising Sharon Goldwyn, Gitano also expects stripes and nauticals to be strong in spring.

Osh-Kosh, which does not sell directly to discounters but still makes its way to some through diverters, expects several key looks to be hot for spring. In girls', feminine detailing through the use of lace collars, embroidery, tiered pleats and florals should be strong, along with '60s style bright prints, stripes, and black accents. In Boys', the manufacturer is looking toward big screen prints, striping, patch detail, a madras look, bold prints, and tropical and neon brights.