|
Feature Article, May 2006
Chico’s Adds To Its Closet
Chico’s acquires new brand and outlines aggressive growth plans for 2006.
Susan H. Fishman
 |
Chico’s FAS plans to open 60 new Chico’s locations in 2006.
|
|
Known for providing comfy clothes for the affluent female shopper, Fort Myers, Florida-based Chico’s FAS, which operates a total of four ladies apparel brands, including White House|Black Market and Soma by Chico’s, is opening 150 new stores this year — which equates to a square footage growth of 30 percent for the company. Also new for 2006 is the company’s recent acquisition of Fitigues, which sells luxurious, comfortable clothing through 14 freestanding retail store locations throughout the country, as well as through its customer catalog.
Chico’s has grown rapidly over the last several years with sales reaching $1 billion in 2005 with same-store sales increasing in the double digits. White House|Black Market sales reached $250 million in 2005 with 30 to 50 percent same-store sales increases each quarter. The company acquired White House|Black Market, which sells only white and black apparel, in 2003, and its lingerie brand, Soma by Chico’s, was launched in fall 2004.
 |
Chico’s launched its lingerie brand, Soma by Chico’s, in fall 2004.
|
|
The new Fitigues brand has been described as “a hipper, younger, more fitted look than Chico’s more novelty apparel” and “a mix between Eileen Fisher and Juicy.” Chico’s bought 12 of 14 of the Scottsdale, Arizona-based stores in January of this year from founders Steve and Andi Rosenstein, who Chico’s has known for many years and who will remain active in the business.
“We believe the new brand appeals to an affluent customer, similar in age and income to its White House/Black Market customer, but in a more luxurious, casual way, says Chico’s President Scott A. Edmonds. “By bringing Fitigues under the Chico’s umbrella, we can provide the necessary capital, back office operations assistance and leverage it needs to successfully expand the brand across America for the next several years.”
“We are just now determining our real estate growth strategy for that brand,” notes Mike Elleman, Chico’s senior vice president of real estate.
 |
Chico’s is a specialty retailer of private label, sophisticated, casual-to-dressy clothing, intimates, complementary accessories and other non-clothing gift items.
|
|
The company has, however, embarked on an aggressive push of its other brands throughout the country with 150 new locations planned for this year, as well as the expansion of 40 to 50 Chico’s and White House|Black Market stores. Plans call for 60 new Chico’s stores, 70 White House|Black Market stores and 20 Soma by Chico’s stores this year. Expansion plans are also underway with a relatively new store design that is “much warmer, more colorful and seems to be very popular with customers,” says Elleman. The new store design for Chico’s and Soma by Chico’s can be seen at Bellevue Square in Bellevue, Washington, and Water Tower Place in Chicago, among other locations.
Chico’s does business in a multitude of venues, including regional malls, lifestyle centers, strip centers, street stores and specialty centers.
 |
Chico’s FAS plans to open 70 new White House|Black Market stores in 2006.
|
|
“We aren’t necessarily looking for any specific type of shopping center,” says Elleman. “But in terms of location, they need to be where our customer is located.”
The Chico’s customer is between the ages of 35 and 55 with an annual household income ranging from $75,000 to $100,000 and up. The White House|Black Market customer ranges in age from 25 to 50.
“Our productivity is unsurpassed in the ladies apparel segment,” Elleman says. “We have a very loyal customer base, and we’re serving the baby boomer market, which currently has some competition. But it seems that we have been able to develop more loyalty than any of our competitors, which allows us to drive traffic to a shopping center.”
 |
Chico’s FAS will open 20 new Soma by Chico’s stores this year.
|
|
Established in 1983, Chico’s began in a small store on Sanibel Island, Florida, with Marvin and Helene Gralnick selling Mexican folk art and cotton sweaters. Today, Chico’s is a specialty retailer of private label, sophisticated, casual-to-dressy clothing, intimates, complementary accessories and other non-clothing gift items. Virtually all of the clothing, accessories and non-clothing gift items offered at Chico’s stores is designed by the company’s in-house product development team and bears the “Chico’s” trademark.
The company operates 780 women’s specialty stores, including stores in 47 states, the District of Columbia, the U.S. Virgin Islands and Puerto Rico. The company currently owns 501 Chico’s front-line stores, 31 Chico’s outlet stores, 197 White House|Black Market front-line stores, eight White House|Black Market outlet stores, 15 Soma by Chico’s stores, 12 Fitigues front-line stores and two Fitigues outlet stores.
©2006 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.
|
