Prop-filled boutique key to improving kids' wear sales - K Mart Corp.'s Auburn Hills, Michigan prototype store's Kid's Wear childrens' clothing department

Discount Store News, Feb 1, 1993

"Kmart loves kids," proclaims a sign over the new Kid's World children's wear department at the Auburn Hills prototype.

Like most discounters, children's apparel plays center stage in the retailer's soft lines mix. Less than a year ago, Don Keeble, senior vice president, fashions, admitted that its children's department was "underdeveloped." Today, Kmart continues to make great efforts to remedy that situation, evidenced by the new look of the department at Auburn Hills.

By |boutiquing' the children's department, Kmart created an all-in-one shopping area for mothers and kids without interrupting the flow of traffic in the store. While fixtures were upgraded in the entire store, the kids' area is the most visibly different. Not only was it upgraded, but with the use of color and props, a real shopping atmosphere was created.

The department signage is bright red and suits the category, while displays and signage for the adult apparel area was toned down for a more sophisticated look. With props such as bicycles and footballs placed high on decorative shelves, there is no mistaking where the kids' area is; it is visible from the very front of the store.

Even basic four-way apparel displays in Kid's World have either a red, green, blue or yellow stripe on them to match the primary color story featured throughout the department.

According to Keeble, Auburn Hills is an attempt by Kmart to match its fashion merchandise with the proper presentation. "Our buyers have been buying well for years, but they couldn't present it that well," he said. "Presentation is a great part of this business; it's always been important. We're getting to a certain level where we've got to improve on it."

The section divides merchandise into boys' and girls' products, but within the children's apparel department, infants' and toddlers' got special attention.

More playful decor including letter building blocks and balloons are set high above the merchandise displays. They are also visible from the front of the store and create a cozy scene for the baby category. Parents can find everything from diapers to the cute baby outfits that constitute "Grandma bait," all in one place.

The infants' department, has the most visible cross-merchandising presentation in the store. Infant furniture, such as playpens, accessories like car seats, as well as basic and fashion infant apparel are featured here. Formula and infant health and beauty care items can be found in the department.

In apparel, among the brand names displayed prominently around the department are Playskool, Fisher-Price, Sasson, Hanes and its own private label brand, Electric Kids.

The signage reaffirms Kmart's commitment to customers, kids' department placards that claim, Quality, Satisfaction, Always." and "Our commitment to you is quality, fit and great value," are throughout the department.

"The message is quality at a price," confirmed Gary Robson, divisional merchandise manager, boys', infants' and toddlers'. Kmart is extending that message beyond signage, putting its money where its mouth is, so to speak. At Auburn Hills, a "Buy 2 and Save" program was instituted. The promotion allows customers to save money on certain items when they buy two or more. It is specifically designed to increase unit sales within the department.

Kmart has always priced its children apparel sharply. Girls cotton tops at $3.99 and boys' jeans at $10.99, among some of the special buys featured at Auburn Hills and are consistent with the price range of basic apparel in the department.

As in the rest of the store, the adjacencies are also designed to take customers through the store in an organized fashion. The new look of Auburn Hills also allows better visibility throughout the store, also making shopping easier.

A potential weakness for this department is that toys, clearly visible from the area, is not direct across the aisle from children's apparel, something executives will be evaluating. Clear sight lines allow children's apparel to be seen easily from the toy area. one clever adjacency, maternity wear, is right next to the infant's area at Auburn Hills.

While Kid's World may have made a big visual impact at Auburn Hills, shoppers were not as impressed with the department as they could have been. The presentation, changed, but the merchandise did not. Despite the presence of the national brand names, consumers rated it relatively low compared to other departments.

In a study of the Auburn Hills store conducted for DSN by Leo J. Shapiro & Associates, Chicago, children's apparel got a rating of 6.1 (out of a possible 9) from shoppers at Auburn Hills. The only categories to receive lower marks were the traditional men's department's (hardware, automotives and sporting goods), plus cameras and film, and snacks and foods. Every other apparel category managed to do better in the survey. This is particularly interesting since children's apparel has long been a key strength for Kmart in the minds of shoppers.