Listen: Baby Boom: Why this Century-Old Company is Dominating Kids Clothing
"<music> ah from wondering i'm david brown and this is daily on this august night happy friday. Everyone looks like we made it baby clothes. They hardly evoke an image of cutthroat competition now do they. After all ducks and teddy bears they're just just not very aggressive but the business side of things it's as competitive as they come one surprising companies dominating your kids closets but we're betting you're not really aware of it at a time when most children's clothing makers are struggling a once humble one hundred fifty six year old company is taking over the business that company is is carter's founded by british immigrant william carter in eighteen sixty five in needham massachusetts than small town outside of boston. It's come a long long way. Since its modest family origins. The carter family sold it in nineteen ninety in the last ten years. Carter's businesses doubled to its current revenues of three point five billion dollars. So what gives is the market for kids closed just good overall. Maybe feeling flush whereby more baby gifts yes sir larger wardrobes for junior. Perhaps no no no no no the birth rate. Is it a thirty year low and as we mentioned in a recent episode about the diaper market parents parents don't buy stuff for kids who don't exist that low birth rate plus the problems roiling virtually all brick and mortar retailers have dealt fatal blows too many kids clothing companies. The washington post reports that more than seventeen hundred children's stores closed in the last year alone chalk those high numbers burs up not just to your local boutique but to the failure of big chains babies r us gymboree ian crazy eight in contrast will carter's has grown not just just for the last ten years but every year for the last thirty why in part because it is everywhere hundreds of its <unk> own branded stores discount outlets and the web about thirty percent of its sales are online. These days recently rolled out a buy online pickup in store feature feature sure to please busy parents but carter success also stems from smart deals at forged with target walmart and amazon beginning about a decade akkad ago according to the post carter's customizes fashion lines for each chain those deals effectively transformed potential chiller competition in to customers shop at target and you know the ones that you're buying comes from carter's cute ones he also serves as an advertisement for carter's store where you might just start next time your baby grows another couple of inches another reason for carter's ubiquity low prices for decently made clothes that infants and toddlers toddlers where only briefly say eight dollars for a body suit that a baby grows out of in a matter of weeks or of course it spits up on and then there's the increasing racing lack of competition right all those rivaled stores close carter's fills a big gap. The company's closest competitor children's place had sales of about two billion dollars as last year not bad considering the malays hit most children's apparel chains but it has faced challenges. It's currently shuttering three hundred locations nations. That's not to say that everything is rosy for carter's. It plans to shudder about one hundred underperforming stores in the coming year but it'll use."