The Struggles of Children’s Stores in the Fashion Industry

Shoes, clothing for women, men and now children! In the textile and ready-to-wear sector, nothing is going well. After Camaïeu, San Marina, Kookaï, Burton, Pimkie, Gap… It’s the turn of the Du Pareil au Même and Sergent Major stores, properties of the Générale pour l’Enfant (GPE) group, to be in turmoil. The two brands were placed respectively in receivership and in safeguard proceedings a few days ago. 50 to 100 stores of the two brands could be sold or closed. Unfortunately, they may not be the only ones. Among the names mentioned, we are talking about Vert Baudet, Cyrillus or Auber, all in poor financial condition, which could swell the ranks of bankrupt stores.

But why is it the turn of children’s stores to be affected? “It’s sudden, but the reasons are the same as for other clothing brands,” says Stéphane Tubiana, senior partner at Roland Berger. Indeed, for fifteen years the ready-to-wear model has been put to the test with rising wages, rising rents, almost permanent promotion… All of this leading to a drop in margins and profitability of these brands. Put on a drip during the Covid period, the brands must today repay the loans granted by the State, further widening their deficit, which is already very deep. At the same time, customers, anxious to preserve their purchasing power, are pushing the doors of these shops less and less, whose product prices have also jumped by 10% on average.

Mid-range brands in turmoil

If high-end stores and low prices are a hit, mid-range stores are shrinking and have to face fierce competition from Zara and H&M kids. “The mid-range can have a way out if it signs rough spots with a particular service, design or promise such as the use of recycled or recyclable raw materials,” adds Stéphane Tubiana. He cites for example Petit Bateau, which belongs to the Yves Rocher group. “It’s a historic brand with iconic, quality items,” he explains. According to him, From the Same to the Same would not have succeeded in embarking the customer with a story…

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