Today, the Children’s Place announced it was planning to partner with Sam’s Club. The kid’s clothing company is just one apparel retailer rushing to work with wholesalers. Sam’s Club sells Nicole Miller, Betsey Johnson, London Fog and Ed Hardy.
And Costco announced it was ramping up its apparel offerings, which includes partnerships with Tumi luggage, Under Armour, Badgley Mischka and 7 For All Mankind. Good sales in apparel helped Costco achieve great sales last quarter.
Why Costco and Sam’s Club would like to feature these brands is obvious. Their customers can’t get enough and are impressed with the merchandise assortments.
But why would apparel retailers, who spend considerable resources building prestigious brands, want their stuff in a warehouse?
“For Children’s Place, it’s an opportunity to enhance brand awareness in a different customer base,” Dorothy Lakner, an analyst at Caris & Company in New York, explains in a note.
She also said that it would allow the company to boost profits because they’d be manufacturing and selling more clothing.
Children’s Place is testing its product in about 300 Sam’s Club stores before moving forward, Lakner said.
Expect to see more brands entering your local Costco or Sam’s Club.
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