Fashion retailer Fox-Weizel Ltd. (TASE: FOX) plans to launch US brand The Children's Place in Israel by Passover 2014, and to invest NIS 20 million in the venture over five years.
Children's clothing prices in Israel will fall by 10-20% over the coming years, Zvika Shweimer, the CEO of Delta Galil Industries Ltd. (TASE: DELT) unit Delta Israel Ltd. told "Globes". His prediction is based on the entry of The Children's Place to Israel, and an earlier announcement by Fox-Weizel's rival, Castro Model Ltd. (TASE: CAST), that it will launch a new children's fashion chain in August.
The Children's Place, founded in 1969 in New Jersey, is one of the largest children's clothing chain in North America, offering a wide range of basic and fashionable clothes to boys and girls from infancy through to the age of 10. It operates as a one-stop-shop for apparel, accessories, and footwear. It had 1,095 stores worldwide in February 2013 as well as online operations.
The Children's Place's stores in North America cover 400 square meters each, but the Israeli outlets will have 250 square meters, making them the country's largest children's clothing stores. In North America, the brand is known for its low prices, and the question is what will be its prices in Israel.
The Children's Place e-commerce site, which ships to Israel, provides an indication of its low prices. Boys and girls long-sleeved pajamas cost NIS 58-66; jeans cost NIS 58-116; shorts cost NIS 43; and gloves cost NIS 11.60.
Prices do not include shipping and delivery, but the website states that international orders are shipped for free. An order of 12 items by this correspondent cost NIS 840. There were no shipping charges or 20% customs duty, and VAT in Israel is 18%. It can therefore be assumed that the Israeli franchise will compete against the online prices.
Published by Globes [online], Israel business news - www.globes-online.com - on June 30, 2013
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