The Children's Place used to be parents' go-to store for affordable yet high-quality apparel to dress all their kids. No matter the age gap between each child, The Children's Place was always a safe bet, as it had multiple sizes and styles that covered everyone's needs.
And let's not forget about the elastic pants that adapted to the fast pace of children's growth, as they could be expanded by adjusting the elastic in the waistband. These resizable pants were considered money savers since they allowed parents to save themselves a few bucks because the clothes fit for longer.
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The Children's Place was founded in 1969 and began selling toys, apparel, and accessories, but later decided to focus only on apparel. It has now expanded to more than 500 locations in North America and owns multiple brands, including Gymboree, Sugar & Jade, and PJ Place.
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The company started selling its products at brick-and-mortar locations, which gained it the recognition it has today. Later, in the 2000s, it launched its online shopping platform.
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The Children's Place hits a rough patch in its e-commerce business
Although The Children's Place was once parents' holy grail for children's clothing, its heyday seems to have passed, as the company has reported declining numbers in multiple areas, especially in its e-commerce business.
The Children's Place reported a double-digit decline in its e-commerce business, which it attributed to the rationalization of promotions, reductions in inflated and unprofitable marketing spend, and free shipping offers.
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According to The Children's Place's Q2 earnings report for 2024, net sales decreased by 7.5% in the three months ended Aug. 3, which the company attributed to a decline in e-commerce revenue.
Although the company's finances are struggling, The Children's Place refused to allow these troubling times to take down its kids' retail empire and devised a solution to fix its weakest spot.
The Children's Place partners with Shein to open a storefront
On Oct. 30, The Children's Place (PLCE) announced it had partnered with Shein to open a storefront on its shopping platform.
This new partnership is in an effort to improve The Children's Place's e-commerce business, reach a broader audience, and diversify its omnichannel strategies to make shopping a more seamless experience.
“Our partnership with SHEIN allows us to seamlessly meet customers where they are – on digital platforms – delivering the convenience, value, and satisfaction they expect from us. This collaboration reflects our commitment to making shopping effortless, accessible, and exciting for today’s families,” said The Children's Place Brand President Claudia Lima-Guinehut.
Shein is a Chinese-based global fashion and lifestyle online retail giant that sells its own products and products from other vendors at affordable prices through its platform.
The demand for trend-forward apparel at an affordable price has allowed online fast-fashion mass retailers like Shein to dominate the retail market, leaving behind the mainly brick-and-mortar counterparts like The Children's Place.
As the saying goes, if you can't beat them, join them. Hence, The Children's Place decided to join one of the biggest online retailers to improve its e-commerce business and reverse its negative numbers.
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The Children's Place products on the storefront will be around $6.89 to $71.96, and since Shein is known for its incredibly low prices, the company will offer various discounted items and free shipping on its orders.
The Children's Place storefront is currently only available in Shein U.S. but will soon be available worldwide.
Although The Children's Place's stock is down nearly 36% year-to-date as of Monday's open trading hours, the recent partnership increased its shares by over 16% the day the announcement was made.
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