e a r n i e awa r d w i n n e r s
2017
The Earnie Awards
Recognizing excellence in design and retail across the children’s fashion market for 2017.
Company of the Year: Carter’s, Inc. It’s been another banner year for Carter’s, Inc.—the innovative stalwart of infant and children’s apparel. Now passing the centuryand-a-half mark of providing quality products and innovation, the Atlanta-based company shows no signs of slowing down. Julie D’Emilio, executive vice president of sales, underscores that 2017 was bolstered by the launch of several exciting initiatives in what is setting up to be the company’s 29th consecutive year of sales growth, adding, “2017 has been a very good year, full of new developments and proud moments in all areas of the company.� The company’s core labels—Carter’s and OshKosh B’gosh—currently command 18 percent of the size 0-7 market in the U.S., with multi-channel growth furthering the upward trend. Today, the business spans divisions of wholesale, retail, ecommerce and international, reaching consumers in more than 100 countries. “The retail landscape looks very different today than it has in the past,� D’Emilio says. “We have to think globally and always with an omnichannel perspective.� Toward that end, in February, Carter’s expanded its portfolio with the acquisition of Skip Hop, a global lifestyle brand of diaper bags, kids’ backpacks, travel accessories and hardlines for playtime, mealtime and bathtime. With Skip Hop already distributed in more than 5,000 stores in the U.S. and more than 60 countries, Carter’s marketing, distribution and supply chain capabilities are forecasted to double the brand’s business over the next five years, with plans to integrate a portion of its products into all Carter’s retail stores across the U.S. by the end of this year and in Canada by early 2018. Skip Hop’s best-selling items this year included the 3-in-1 travel mobile, activity centers and the award-winning bee crawl toy. The brand’s character backpacks were another favorite, even beloved by the daughters of Mark Zuckerberg and Jessica Simpson, as seen on Instagram. Domestic expansion of Carter’s and OshKosh store operations has been another top priority for the company this past year, transforming its approach beyond its recent side-by-side concept to a co-branded store where the brands are merchandised together under one roof. The new co-branded stores, slowly rolling out this year across the U.S., are approximately 4,000-5,000 square feet. “We’re refining our brick-and-mortar model to make sure we’re implementing the most effective format,� D’Emilio says, noting that the decision to consolidate isn’t because brick-and-mortar is “dying,� it’s simply a smaller footprint that reflects the habits of today’s shopper. “They provide the best selection of both brands
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in one convenient location,� D’Emilio says, adding that about 75 percent of Carter’s customers still shop only in stores. Nonetheless, D’Emilio says omnichannel is an important focus for Carter’s. “Our fastest growing business is ecommerce and we are investing in new technology to support this growth, such as ‘buy online, ship to store,’� she says. D’Emilio reports 15 percent of customers make purchases online to pick up in store and within that 15 percent, approximately 30 percent make additional in-store purchases. The company anticipates $650 million from ecommerce sales across all channels this year, making up 19 percent of its total sales and trending about 30 percent over the last year. To further streamline its shopping experience and elevate its omnichannel approach, Carter’s launched an app last month. “We have seen incredible growth in traffic through mobile devices this year,� D’Emilio says. “Our new app will allow for a faster, seamless shopping experience.� Additionally, as many retailers question whether they should try to beat Amazon or join it, Carter’s decided to do the latter this year. The company paired with the retail powerhouse to launch a line exclusive to Amazon Prime members in April called Simple Joys by Carter’s. The new collection includes multi-piece bundles of pajamas and apparel, including bibs, blankets and other “super soft basics.� “Simple Joys really focuses on the millennial customer who loves shopping through Amazon,� D’Emilio says. “It includes all the essential items in multi-piece bundles, making stocking up on basics easier for our consumer.� The line ranges from newborn to 24 months and will expand with toddler sizes by the end of 2017. The company also holds similar partnerships with big box retailers, including Walmart’s Child of Mine label and Target’s Just One You label. While its remarkable product line and strategic momentum have propelled Carter’s forward for 152 years and counting, D’Emilio reveals the secret to its long-running success is its dedicated staff. “We have a great team with the same core values,� she says. “We are committed and passionate because of the strong collaborative culture.� D’Emilio adds that the company is constantly innovating. “We are committed to being the world’s favorite brands in young children’s apparel and related products.� D’Emilio says. “Even in this tough retail environment, we feel we are well-positioned with our multi-channel global model.� —Emily Beckman