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Cribs account for 26% of sales, space

Staff -- Kids Today, 10/1/2006

About one-fourth of selling space in kids specialty stores is devoted to cribs according to Kids Today's exclusive survey of specialty retailers. Retailers also report cribs are among the most profitable of the products they sell. With a median best-selling price point of $475, they are one of the highest-ticket items sold in kids specialty stores.

Cribs and other furniture made up 55% of sales in 2005 according to stores reporting to Kids Today. This year retailers are expecting 58% of their sales to come from cribs and other furniture. They're also projecting a slight increase in the percentage of sales coming from decorative accessories.

Toys, as a percentage of total sales, are expected to decline slightly this year. Ironically, plush toys reportedly turn in one of the best profit margins.

Retailers anticipate apparel, as a percentage of total sales, to have the largest decline this year. Less than one-half of the retailers surveyed carry any apparel products, and among those who carry the category, clothing for infants to 24 months and layettes are the most prevalent.

Retailers carry products for these age ranges

Best-selling price points
Medians
$20 or less
Developmental toys$20
Plush toys20
Photo frames20
$21–$50
Layettes30
$51–$100
Area rugs90
Lamps/lighting55
$101–$150
Crib mattresses129
$151–$200
Bedding sets200
Strollers200
Play tables, chairs170
Highchairs170
$201–$300
Car seats250
$301 or more
Dressers/chests500
Cribs475
Glider rockers425

 

Behind the numbers

Kids Today's annual exclusive survey includes the responses of retailers representing more than 110 juvenile specialty stores. Most retailers are small independent stores, producing under $3 million in annual sales; slightly more than half belong to a buying group or are affiliated with a franchise operation or association. None of the stores carried any other merchandise that was not intended for kids.

Most retailers (85%) operate a single store; the remaining 15% have two to three store units.

By region, responding retailers are located in: Sales volume for the responding stores was:
South38%Less than $500,00031%
West24%$500,000 up to $1 million34%
Northeast19%$1 million up to $3 million32%
Midwest19%$5 million or more3%

The focus for this year's survey is on the merchandise mix, including what products are carried, number of lines carried and best selling price points for selected products.

The 2006 Kids Today juvenile specialty store operations survey was conducted by research specialist Judi Fulbright and market research director Kay Anderson, with assistance from database coordinator Cynthia Myers and research assistants Stephanie Lewis and Patrice Rahming.

Terms used in the report

Bedding sets are coordinated bed linens (comforter, shams, dust ruffles and sheets) either packaged separately or as a set for twin or larger beds.

Beds include headboards, footboards and side rails of all sizes — twin, full, queen or king.

Close ratio is calculated by dividing the average number of customer visits per week that result in a purchase by the average number of customer visits per week.

Crib linens includes blankets, sheets, covers, bumpers, but excludes comforters, duvets, spreads and quilts.

Mattress includes all sizes other than for cribs — twin, full, queen or king.

Medians are the middle point for any range of figures. When medians are given, it means that one-half of the stores reported figures above the median and one-half reported figures below the median. Unlike averages, the median is not distorted by unusually high or low figures that may be reported.

Products shown in the merchandise mix graphics are carried by 10% or more of the retailers surveyed.

Toys include books, games, plush, developmental toys and CDs/DVDs/videos.

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