Too Inc. (New Albany, Ohio) announced that it is ending the rollout of its mishmash retail concept for teen girls in favor of the development of a new concept focused on value-priced sportswear and accessories for tween girls, ages 7 to 14.
“While we have been encouraged by the trend in business at mishmash, we do not believe it can reach the level of success and related financial objectives as quickly as originally planned, given the high level of competition from specialty retailers and other merchants targeting teen girls,” said chairman and ceo Mike Rayden. “We believe that the best strategic course for the company to follow is to focus entirely on our core customer, the tween girl.”
Rayden said, “We believe that we have seen a fundamental shift affecting mall-based retailers offering premium brands. At Limited Too, there has been a measurable decline in store traffic and transactions attributable to, in part, a greater number of customers opting for shopping at lower-priced discounters and mass merchants. With so many of those larger names operating outside of the mall, mall traffic will remain a challenge for all specialty retailers.”
Rayden called the new concept “our effort to expand our dominance in specialty apparel retailing for tween girls. For 16 years, Limited Too has brought fashion to our core customer more successfully than any other brand. At the same time, we know that a significant segment of the tween girl population has not shopped our store because of the perception of high prices. The new concept will offer similar styles and fashion, and the consistency of quality and fit available at Limited Too, but at lower prices. We see this new concept as the number one competitive opportunity for the company, a brand that can grow to have a larger number of stores than is planned for Limited Too.”
A “substantial portion” of the 18 existing mishmash stores will be converted to the new concept stores. In addition, the company plans to open 20 stores in 2004 in retail power centers and strip centers. The first new concept stores are slated to open in February 2004.
Too Inc. said it is also discontinuing its joint venture with Angus & Coote (Holdings) Ltd. of Sydney, Australia, to open additional Goldmark jewelry stores in the United States. There are currently three Goldmark jewelry stores operating in New Jersey and one in Ohio.
Too Inc. currently operates 518 Limited Too stores in 46 states selling apparel, swimwear, sleepwear, underwear, footwear, lifestyle and personal care products for tween girls (ages 7 to 14) girls. The 18 mishmash stores had been opened throughout the U.S. beginning in 2002, offering personal care products, sportswear, intimate apparel, shoes, accessories and lifestyle products for teen girls ages 14 to 19.