Blog: Leonie BarrieCan Aeropostale work its magic on kids?

Leonie Barrie | 18 June 2009

Teen clothing retailer Aeropostale is one of the few bright lights in the retail sector just now, with its namesake chain seeing first quarter profit soar 81.1% to $31.7m and sales jump 21% to $408.0m.

And it now believes it has identified another retailing sweet spot selling trendy clothes at value prices to kids aged between 7 and 12.

The first P.S. from Aeropostale store opened in New York today and nine more are due this year.

The timing of the launch, in the midst of one of the worst recessions on record, might seem strange, but it plays along with the belief that knowing your customers – and giving them what they want – is key to getting through the economic slowdown. Successful new brands will supplement existing ones in the future, and of course there’s plenty of retail space up for grabs now too.

The concept is not without its competitors; just think Children's Place, Abercrombie & Fitch's abercrombie, and J Crew's Crew Cuts.

But analysts continue to believe the teen and children’s apparel category is more resilient than that of adults’ clothing. Partly because kids outgrow their clothes and need to make more purchases as a result, but also because parents are less likely to cut back on their children’s products than they are their own.

 


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