retail

Chico's, Beating Expectations, Asks: #HowBoldAreYou?


Chico’s, the specialty retailer that’s been struggling to get its groove back, says its fourth-quarter profits topped industry expectations, indicating its turnaround efforts are on target. And the company is in the midst of rolling out a new campaign, using women’s ages to shake up its “women of a certain age” stigma.

“Our core shopper isn’t one age or one style,” says Shelagh Stoneham, senior vice president, marketing for Chico's. “What sets her apart is personal style–she’s fun, colorful and loves joy, and we look to play a supporting role in her life.” Using the #HowBoldAreYou hashtag, the video features women flaunting Chico’s latest looks, as well as their age. And the social media campaign supporting it asks women to post pictures of themselves on social media, wearing a t-shirt emblazoned with their ages.

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The Fort Myers, Fla.-based company says net income for the fourth quarter rose to $28 million, up from $13.5 million in the same period a year ago, including a $10 million gain from tax reform and $4 million from the benefit of a 53rd week of sales. But sales trends were negative: Net sales dropped 2.2% to $587.8 million, and same-store sales fell 5.2%, as customers spent less per transaction. (At Chico’s, same-store sales slipped 3.2%, while at its White Horse Black Market chain, they sank 9.3%.)

"In 2017, we strengthened our brands' positioning, enhanced the customer experience, maintained financial discipline and built a solid foundation for our next stage of profitable growth,” says president and CEO Shelley Broader, in its announcement. “We are excited about our sales-driving initiatives for 2018.”

Stoneham tells Marketing Daily the new campaign is an attempt to reinforce the brand perception with loyal customers, “and bring new customers into the Chico’s family.”

The campaign is the first from The&Partnership, which won the account last fall amid plenty of Hurricane Irma drama. “And this campaign actually came out of the agency’s initial pitch,” she says, “which hardly ever happens. But it was that good, and that well researched.” Besides the digital and social elements, print is running in O, The Oprah Magazine and InStyle.

She says that the splashy prints are part of the charm. “We’ve got over 1,000 prints a year,” she says, and that vibrancy is a part of the brand’s character: “We dress in our outside voices.”

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