A popular children’s clothing store hopes to reach adults
Despite a turbulent year that struggled to maintain post-pandemic buying momentum, The Children’s Place (PLCE) maintains a strong position in the children’s clothing market.
The company founded in Secaucus, NJ, in 1969 has a market capitalization of $490 million and is a mainstay of suburban malls nationwide.
It is, in the minds of many people, the place of choice to buy clothes for babies and young children.
But as most apparel companies are well aware, success in one corner of the market won’t necessarily spill over to other demographics.
As Gen Z pursues other trends, Abercrombie & Fitch (ANF) recently attempted to follow the millennials who grew up wearing the brand‘s polo shirts in the mid-2000s into adulthood with new store concepts aimed at 25-35 year olds.
The place of children but make it adult
Although its reasons for doing so are different, The Children’s Place is following a similar trajectory and launching a sleepwear and loungewear brand designed for Millennials and Gen Z shoppers.
Launching this week, the new PJ Place collection includes pajama sets, robes, thermals, slippers and socks, and other loungewear items priced from $10.95 to $69.95.
The concept evolved from the matching family pajamas that The Children’s Place already offered. These sets are especially popular during the holidays for family Christmas cards and Christmas outfits.
“While our current adult sleepwear assortment focuses almost exclusively on matching family looks, we recognized we had an opportunity to expand our adult sleepwear assortments to directly appeal to generation customers. Y and Gen Z by introducing new fabrics, silhouettes and a touch of whimsy,” company president Jane Elfers said in a statement.
A bumpy road but ultimately optimistic for the place of children
Don’t expect to find it in stores as the collection will be sold exclusively online at PJPlace.com and will be marketed by Khloé Kardashian, Kris Jenner and TV personality Tyler Cameron.
The new line is presented as a comfortable way to relax at home.
Jenner and Kardashian will, for the second consecutive year, also appear in The Children’s Place holiday collection.
With the pandemic pushing many people towards more casual attire, loungewear and athletic recreation have been among the fastest growing categories – the latter is should grow of $13.36 billion at a CAGR of 6% between 2021 and 2025.
While a single line from The Children’s Place is unlikely to overthrow big industry players such as L Brands (KG) and Jockey, its appearance indicates that the brand wants to expand its market share in this category.
The company has had a turbulent few years – after a pandemic-related sales decline seen for most apparel, a post-pandemic windfall in buying took the stock to $113 towards the end of 2021.
Stocks are now at $38 as inflation and the post-pandemic recovery plunge again into the amount of children’s clothing people buy.
“A lot of kids needed a lot of new things last year after not having in-person classes for quite a while due to homeschooling in so many areas,” Paul Price said. written for The real money from TheStreet. “It made a bumper profit for PLCE in fiscal year 2021 when final earnings per share hit a record high of $13.40. It was clear that this figure would not be achievable this year without action. stimulus and child tax credit payments.”