Children's Place Banks On Digital Efforts To Beat Competition
Zacks Investment Research | Jun 19, 2018 10:06PM ET
The Children's Place, Inc. (NASDAQ:PLCE) is leaving no stone unturned to boost the company’s top line and expand its customer base. In an effort to provide a hassle-free shopping experience, the company is focusing on digital transformation
This Zacks Rank #3 (Hold) company has plans to invest $50 million in SG&A over the next three fiscals to support digital transformation, with $30 million, $15 million and $5 million in fiscal 2018, 2019 and 2020, respectively. Per management, its digital business is expected to see a CAGR of low 20% range. The company also expects to generate 35% of total revenues from its digital channel by 2020.
Further, the company had earlier delivered customer database and rolled out Wi-Fi, BOPIS, Ship from Store, mobile POS across all U.S. stores. Also, it launched SMS texting capabilities and implemented everyday-free shipping with no minimum purchase. Children's Place will also take up initiatives to implement “BOSS” (Buy Online, Ship to Store) in the fourth quarter of fiscal 2018. Further, it announced plans to open a new e-commerce site with Tmall — the e-commerce platform of Alibaba (NYSE:BABA) — in the second half of fiscal 2018.
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