Gymboree’s clothing Brand for kids has been missing for most of this year, but that will change in the near future.
A Refresher on Gymboree’s Bankruptcy and Acquisition
As a refresher, in January of this year, Gymboree filed to receive bankruptcy protection. Following this, The Children’s Place paid $76 million to own the rights associated with Gymboree as well as its brand, Crazy 8. This had been the second occasion in which Gymboree went bankrupt within two years, and all 800 of its locations closed. Janie and Jack was the more upscale brand of Gymboree, which Gap bought for $35 million.
The New Announcement
In mid-October, The Children’s Place finally announced its plans for the Gymboree and Crazy 8 names. In 2020, it will be relaunching Gymboree’s website and add shops for Gymboree within 200 of its existing stores. These changes will take place in Canada and the United States. The online additions will include a new application with free shipping for convenience.
The Goals of The Children’s Place
The Children’s Place hopes to provide shoppers with the Gymboree Brand experience that they know and love, with all the necessary updates. The Gymboree shops will be shop-in-shop locations. According to The Children’s Place, the Gymboree offerings will be reminiscent of those shoppers expect, including those that celebrate childhood with playful clothing and accessories.
New Features and Loyalty Programs
Shoppers will be able to utilize a conveniently shared shopping cart when shopping at the separate The Children’s Place and Gymboree websites. There will also be a new loyalty program just for customers of Gymboree.
How It Will Affect the Market
The move should help The Children’s Place with its sales. The company’s shares have dropped by more than 16 percent just this year. The market cap for the company is around $1.2 billion. The announcement of the relaunch of Gymboree did cause a jump of nearly 3 percent on the company’s stock price.
Following the closure of the 800 Gymboree stores, the options for buying kids’ clothing went down. Target and Gap were both experiencing increases in the market share. Target did so with its private labels, while Gap achieved this overall and via its rights to Janie & Jack. This is a clothing company with slightly pricier clothing.
For now, the Gymboree website says that it will return in spring 2020 and encourages shoppers to share thoughts and photos. There is also the option to sign up for a Gymboree email list.
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