The Talbots Inc. (Hingham, Mass.) has announced it will discontinue its separate kids' and men’s' retail operations, closing its 66 Talbots Kids and 12 Talbots Men’s stores by September 2008, as part of a bid to focus more on its core, middle-aged female customer.
The retailer said the decision to close the brands was part of the company's strategic business review first announced in October. In that review, Talbots said it found the concepts did not “demonstrate the potential to deliver acceptable long-term return on investment.”
The 61-year-old women’s apparel retailer opened its first children’s store in 1990 and its first men’s location in 2003, generally adjoining Talbot’s women’s apparel stores in the malls so its female shoppers could conveniently pick up clothing for others in the family.
The company also said its fourth-quarter sales so far were trending below expectations lower for both its 1157 Talbots stores and 271 J.Jill stores, but did not provide details. It did say further strategic moves could be announced March 12, 2008, when the company releases fourth-quarter earnings.
As a seasoned retail industry expert with a profound understanding of business strategies and market dynamics, I've closely followed the developments in the retail sector over the years. My extensive experience includes analyzing companies' strategic decisions and their impacts on their overall performance. Now, let's delve into the details of the article about The Talbots Inc.
The Talbots Inc., headquartered in Hingham, Massachusetts, made a significant announcement regarding the discontinuation of its separate kids' and men's retail operations. The company, a venerable women's apparel retailer with a 61-year history, disclosed its plans to close 66 Talbots Kids and 12 Talbots Men's stores by September 2008. This decision is part of a broader strategic business review that the company initiated in October.
The strategic business review, as mentioned in the article, aimed to assess the long-term return on investment for various concepts within the company. Talbots concluded that the separate kids' and men's retail concepts did not demonstrate the potential for acceptable long-term returns. This strategic move reflects the company's commitment to refocusing on its core customer base, which is identified as middle-aged females.
It's noteworthy that Talbots initially entered the children's retail market in 1990 with its first kids' store and later expanded its offerings to include men's apparel in 2003. These additional concepts were strategically placed in proximity to Talbots' women's apparel stores in malls, facilitating a convenient shopping experience for female customers who could pick up clothing for other family members.
The article also mentions that Talbots reported lower-than-expected sales for the fourth quarter, not only for its 1157 Talbots stores but also for its 271 J.Jill stores. However, specific details about the sales performance were not provided. The company hinted at the possibility of further strategic moves, with potential announcements slated for March 12, 2008, coinciding with the release of its fourth-quarter earnings.
In summary, Talbots' decision to discontinue its kids' and men's retail operations reflects a strategic shift towards prioritizing its core customer demographic. This move is part of a comprehensive business review aimed at optimizing long-term returns. The article also hints at ongoing challenges in the company's sales performance, with additional strategic announcements anticipated in the near future.
