The Children's Place's Digital Transformation Rolls On

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The Children's Place's Digital Transformation Rolls On

By Jamie Grill-Goodman - 09/04/2019

The Children's Place will roll out "Save the Sale" functionality later this year, CEO Jane Elfers said on the retailer’s recent earning call.

Save the Sale will provide The Children's Place customers with access to inventory from other stores or the distribution center for products that are out of stock at a specific store location.

“We’ll be able to deliver that product directly to [shoppers] and capture incremental sales that would’ve otherwise been lost absent to the Save the Sale capability,” said Elfers.

The retailer also rolled out Buy Online, Ship to Store (BOSS) capabilities in its second quarter 2019 and Elfers said the rollout has been "encouraging" for the children’s retailer. As shoppers picked up online orders in stores they were “attaching at a low 20s rate, leading to a considerably higher-than-average ticket.”

The Children's Place’s e-commerce penetration increased to approximately 29% of net sales in Q2.

 “Our outsized digital growth continues to increase penetration in our loyalty and private label credit card program, which are key to our digital transformation,” noted Elfers.

She noted the company is “the only children’s apparel retailer to offer free shipping with no minimum purchase” on all of its e-commerce orders.

“This has been the case for the last several years and is an important component of our omnichannel market share strategy,” said Elfers.

personalization

After building the foundational capabilities for personalization as part of its $50 million investment in accelerating its digital transformation over the past 18 months, Elfers said the retailer launched its initial test phase of personalization in early May this year, focused on a “limited number of identified behavioral segments across five channels of distribution.”

“With only a modest portion of our personalization toolkit deployed to-date, the early results have been encouraging,” she noted. “Building upon the behavioral segments addressed in Q2, we expect to begin to deliver personalized content to additional segments in the back half of 2019.

“We discussed that our digital transformation could be a $200 million revenue opportunity for the Children’s Place, and we continue to believe that the digital personalization initiative is the single largest contributor towards that opportunity.”