"We are targeting our mall-based, brick-and-mortar portfolio to represent less than 25% of our revenue entering fiscal 2022," says CEO Jane Elfers.

By Jen Juneau
June 17, 2020
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The Children's Place
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The Children's Place is set to shutter 300 brick and mortar locations by the end of 2021 amid the ongoing coronavirus global health crisis.

The company released its 2020 first-quarter financial results on Thursday, sharing that "net sales decreased 38.1% to $255.2 million in the three months ended May 2, 2020 from $412.4 million in the three months ended May 4, 2019, primarily as a result of temporary store closures related to the COVID-19 pandemic."

As a result, "We are now targeting to close an additional 300 stores by the end of fiscal 2021, with 200 closures planned for this year, and 100 closures planned for 2021," says Children's Place President and CEO Jane Elfers in the release.

"This initiative will greatly reduce our reliance on our brick and mortar channel and we are targeting our mall-based, brick and mortar portfolio to represent less than 25% of our revenue entering fiscal 2022," she adds of the children's apparel and accessories retailer, founded in 1969.

Elfers goes on to say that the company has been focused on "Superior Product, Digital Transformation and Fleet Optimization," which has allowed The Children's Place "to operate at a high level during the current crisis, with the ability to fulfill our outsized online demand through our advanced omni-channel capabilities."

According to Elfers, the company has a positive outlook moving forward in their online market, in that they "believe that our strong digital foundation, coupled with the rapidly changing shopping patterns of our consumer, partly due to the COVID-19 pandemic, our strong value proposition and our core, digital-savvy, millennial customer, will result in the continued acceleration of our digital revenue."

"Our Fleet Optimization initiative has been a decade-long strategic focus that has resulted in optimum flexibility in our lease terms, enabling us to significantly accelerate store closures without financial penalty," she explains.

"The challenges that lie ahead are many, and visibility is limited, but we are moving forward with urgency and focus, guided by the strategic pillars of our long-standing transformation strategy," Elfers says in conclusion. "We believe that our superior product, coupled with our unique ability, at this critical juncture, to significantly grow digital revenue, while meaningfully reducing our reliance on our store portfolio, will result in consolidated market share gains for years to come."

According to Elfers, the company has a positive outlook moving forward in their online market, in that they "believe that our strong digital foundation, coupled with the rapidly changing shopping patterns of our consumer, partly due to the COVID-19 pandemic, our strong value proposition and our core, digital-savvy, millennial customer, will result in the continued acceleration of our digital revenue."

"Our Fleet Optimization initiative has been a decade-long strategic focus that has resulted in optimum flexibility in our lease terms, enabling us to significantly accelerate store closures without financial penalty," she explains.

"The challenges that lie ahead are many, and visibility is limited, but we are moving forward with urgency and focus, guided by the strategic pillars of our long-standing transformation strategy," Elfers says in conclusion. "We believe that our superior product, coupled with our unique ability, at this critical juncture, to significantly grow digital revenue, while meaningfully reducing our reliance on our store portfolio, will result in consolidated market share gains for years to come."

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