Children's Place to open stores in Israel
The Competition in Israel 's children's wear market is heating up: A week after the Castro fashion chain announced the launch of a children's clothing line, the Fox Group has received the franchise for The Children's Place (TCP), the biggest brand of kids' apparel and accessories in North America.
The American chain's sales totaled more than $1.8 billion in 2012 and it employs some 18,300 workers.
The chain is expected to be launched in Israel in March 2014 with six to 10 stores at a total investment of up to NIS 20 million (about $5.5 million).
"I have been working on receiving this franchise for an entire year," Fox CEO Harel Wizel told Yedioth Ahronoth. "We are talking about the leading children's wear brand in the US which will bring innovations and excitement to the children's fashion market in Israel."
Asked whether the new chain would not compete against his Fox Kids brand, Wizel replied: "When we brought American Eagle, people also asked if it won't compete against Fox. And doesn’t ZARA Kids compete? And H&M and Castro?"
The Children's Place manufactures clothes for babies and older girls and boys at affordable prices, in addition to a variety of accessories, including shoes.
The brand's stores will measure some 200 square meters (about 2,150 square feet) in size, giving them an advantage over competitors like Castro, ZARA and H&M, which sell their children's apparel in a store-within-a-store concept.
Jane Elfers, president and CEO of The Children's Place, said that growing in the international market was one of the company's key targets and that Israel had developed children's fashion market. She added that she saw the Fox Group as the right partner due to its proven success in managing fashion brands in Israel.
The Children's Place entered the international market in 2012 and has 20 franchise stores in the Middle East. The chain operates more than 1,100 stores in the United States and Canada and is publicly traded on the NASDAQ exchange at a value of more than $1 billion.