Bombay closes Kids stores, bows Baby online
By Lisa Casinger and Clint Engel -- Kids Today, 9/1/2006
Fort Worth, Texas-based Bombay Co. is exiting the youth business.
The struggling Top 100 retailer said on Aug. 17 that it will close all 60 of its Bombay Kids stores over the next 12 to 18 months as part of a multi-million dollar cost-cutting effort. Through the second half of its current fiscal year, it will transition out of the kids business at 20 Bombay/Bombay Kids units and expand the core offering in those showrooms, said chief financial officer Elaine Crowley.
Though attached, the Kids units are counted separately, which means overall store closings for the rest of the year will increase to 50 from the previously announced 30 or so stores. The 40 remaining Kids stores will close in 2007.
Bombay bowed Bombay Kids online in August 2001 and opened its first bricks-and-mortar Kids store in 2002 in Dallas.
David B. Stewart, who took the helm as CEO in June, has a cost-cutting plan he hopes will achieve $31 million in savings through the shutdown of Bombay Kids ($7 million); better markdown management ($11 million); advertising cutbacks ($6 million) and staff reductions ($7 million), including three executive positions in marketing, human resources and information technology.
Kristina Ventura, the director of merchandising for Bombay Kids, left the company prior to the Aug. 17 announcement to pursue an opportunity with Michaels, an arts and crafts retailer.
Bombay had a net loss of $19.9 million for the second quarter ended July 29, more than double its net loss for the same period in 2005. Revenue decreased 5.3% to $121.3 million.
The bright spot seems to be the company's direct-to-customer business, which includes Internet and catalog; it grew to $7.3 million for the quarter compared with $4.5 million last year, driven primarily by Internet sales. Subsequently the company is launching Bombay Baby exclusively online this month.
"Nursery, baby and cribs were top requests on all our Web searches," said Lisa Pavelski, divisional merchandise manager for alternate business channels.
The bedding includes Transit, (graphic blocks accented with vintage steamers, planes, trains and cars); Bohemian (shown here); Betsy (a boutique-inspired look); Gigi (French icons, ruffles and curlicues); Pixie (a garden fairy theme with hearts and flowers in vintage-inspired pastels); Bugs (bright butterflies, snails and dragonflies) and Letterman (cozy patchwork with sports emblems).
The company designed the bedding and worked with A.P. Inds. on exclusive cribs and finishes. The changing tables are the combination of existing dressers with changing table tops and the gliders and ottomans are from Little Castle.
All four cribs convert to toddler beds and one also converts to a full bed and they include finishes such as white, black and celery.
The cribs retail between $649 and $749 and the changing tables are $699 to $849. The gliders are available in pale pink, pale green and red microfiber and denim with retail prices of $749.99 for the glider and ottoman.
The crib sets include a bumper, $69; set of two sheets, $35; bed skirt, $59; and quilt, $79.
Bohemian features Sari-inspired paisley prints with shots of pink and purple.
