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1、Claires Stores, Inc. Company Profile Publication Date: 21 Oct 2011 Asia PacificAmericasEurope, Middle East and other accessories such as handbags, small leather goods as well as cosmetics. Jewelry comprises earrings, necklaces, bracelets, body jewelry and rings, as well as ear piercing. The stores
2、in North America are located largely in shopping malls, with an average selling space of 970 square feet.The companys stores in Europe are located mostly on high streets, in shopping malls and in high traffic urban areas and have an average selling space of approximately 638 square feet. Claires Sto
3、res, Inc.Page 5 Datamonitor Claires Stores, Inc. Business Description HISTORY Claires Stores (Claires or “the company”) traces its history back to its predecessor, Fashion Tress (FT). FT went public in over the counter trading in 1961. In 1973, the name was changed to FT Industries. FT Industries bo
4、ught Claires Boutiques in 1974 which operated approximately 60 stores in the Chicago area.The company was named Claires Stores in 1983 and was listed on the New York Stock Exchange in 1985. In 1996, Claires acquired a number of companies, including Icing, Accessory Place and Bow Bangles. The company
5、 also acquired Lux Corporation and Top Kapi in 1998. Later in the same year, it expanded its international reach by acquiring Zurich based Bijoux One. In 1999, Claires acquired Afterthoughts, a 768-store fashion accessory chain, from Venator. The company further expanded its international presence b
6、y purchasing Cleopatre, a private French company, in 2000 for $11 million. In 2001, Claires launched its first website and also renamed its Afterthoughts stores as Icing by Claires. In 2002, Claires sold Lux Corporation, its mens apparel business. In 2004, the company started testing a new retail c
7、oncept, Claires Club. In the following year, Claires opened its first store in Spain. Mary-Kate Olsens and Ashley Olsens Dualstar Entertainment Group signed a deal with the company to sell its fragrances and cosmetics in 500 Claires stores located in North America, in 2006. In the same year, Claires
8、 launched the Icing website . The company merged with an affiliate of Apollo Management in 2007, for $3.1 billion. During the same year, the company was recognized by Forbes magazine as one of the 400 best big companies in America. In 2009, the company re-launched its websites and . In January 2010
9、, the company discontinued the sale of the bracelet that has been the subject of media reports regarding the possible dangers of cadmium. Claires voluntarily recalled its “Best Friends“ charm bracelets in May 2010.The company also added procedures requiring its suppliers to test for cadmium in child
10、rens jewelry.These procedures were in addition to those already in place, including testing for lead and nickel content. In September 2010, the company converted its former 50% ownership interest in the Claires Nippon joint venture into the full and exclusive rights to operate Claires stores in all
11、of Asia excluding Japan. The former joint venture partner, Aeon Co., Ltd., acquired the right to operate Claires stores exclusively in Japan.The company and Aeon also agreed to operate Claires Nippon under a new license agreement, to replace the existing merchandising agreement and to amend the buyi
12、ng agency agreement. Claires Stores, Inc.Page 6 Datamonitor Claires Stores, Inc. History Claires re-launched its US, Canada and UK websites in July 2011. It established online shopping in the US as the first part of its multi-phase e-commerce strategy.The new site provides an extensive selection of
13、accessories and jewelry to purchase online. Claires Stores, Inc.Page 7 Datamonitor Claires Stores, Inc. History KEY EMPLOYEES BoardJob TitleName Executive BoardChief Executive OfficerEugene S. Kahn Non Executive BoardChairman of the Board of DirectorsPeter P. Copses Non Executive BoardDirectorRohit
14、Manocha Non Executive BoardDirectorRobert J. DiNicola Non Executive BoardDirectorGeorge G. Golleher Non Executive BoardDirectorRon Marshall Non Executive BoardDirectorLance A. Milken Senior ManagementPresidentJames G. Conroy Senior ManagementExecutive Vice President, Chief Financial OfficerJ. Per Br
15、odin Senior ManagementExecutive Vice President, Merchandise, Trend And Product Development Joel. S. Herman Senior ManagementSenior Vice President, Real Estate and Global Construction/Design F. Scott Ball Senior ManagementSenior Vice President, FinanceMichael R. Basler Senior ManagementSenior Vice Pr
16、esident, Information TechnologyRobert G. Cole Senior ManagementSenior Vice President, Human ResourcesJoseph DeFalco Senior ManagementSenior Vice President, Strategy, Initiatives and Implementation Andrea Guthrie Senior ManagementSenior Vice President, General Counsel and Quality Assurance Rebecca Or
17、and Senior ManagementPresident, North America operationsJay Friedman Senior ManagementExecutive Vice President, Planning, Allocation And Supply Chain Kirk Hanselman Senior ManagementExecutive Vice President and General Merchandise Manager Denise Vujovich Senior ManagementSenior Vice President, Store
18、 OperationsColleen Collins Senior ManagementSenior Vice President, Human ResourcesMaryAnn Wagner Senior ManagementPresident, Europe OperationsBeatrice Lafon Senior ManagementExecutive Vice President and General Merchandise Officer Shena MacDonald Senior ManagementSenior Vice President, Store Operati
19、onsMarie Castellvi - Depee Senior ManagementSenior Vice President, Human ResourcesCaroline Cording Senior ManagementExecutive Vice President, Global Franchising and International Michael P. Rosera Claires Stores, Inc.Page 8 Datamonitor Claires Stores, Inc. Key Employees BoardJob TitleName Senior Man
20、agementSenior Vice President, Buying, Planning and Logistics William Hoeller Senior ManagementSenior Vice President and Managing DirectorChona Ponce Claires Stores, Inc.Page 9 Datamonitor Claires Stores, Inc. Key Employees KEY EMPLOYEE BIOGRAPHIES Eugene S. Kahn Board: Executive Board Job Title: Chi
21、ef Executive Officer Since: 2007 Mr. Kahn has been the Chief Executive Officer and a Director at Claires Stores since 2007. He previously served as the Chairman of the Board of Directors and Chief Executive Officer during 20012005 and was the President and Chief Executive Officer during 19982001 at
22、The May Department Stores Company. After joining The May Department Stores in 1990, Mr. Kahn has held positions of Vice Chairman and Executive Vice Chairman. He has been the President and Chief Executive Officer at G. Fox, President and the Chief Executive Officer at Filenes, both divisions of May D
23、epartment Stores, in the past. Peter P. Copses Board: Non Executive Board Job Title: Chairman of the Board of Directors Since: 2007 Mr. Copses has been the Chairman of the Board of Directors at Claires Stores since 2007. He is a co-founder of Apollo Management. Prior to joining Apollo, Mr. Copses wa
24、s an investment banker at Drexel Burnham Lambert Incorporated, and subsequently at Donaldson, Lufkin and Jenrette Securities. He is also a Director at RBS Global, a diversified, multi-platform industrial company, and Linens n Things. Rohit Manocha Board: Non Executive Board Job Title: Director Since
25、: 2007 Mr. Manocha has been a Director at Claires Stores since 2007. He was a co-founding partner of Tri-Artisan Capital Partners which was founded in 2002. Prior to joining Tri-Artisan, Mr. Manocha worked at Thomas Weisel Partners, ING Barings and Lehman Brothers as a senior banker. Robert J. DiNic
26、ola Board: Non Executive Board Job Title: Director Claires Stores, Inc.Page 10 Datamonitor Claires Stores, Inc. Key Employee Biographies Since: 2007 Mr. DiNicola has been a Director at Claires Stores since 2007. He also serves as the Senior Retail Advisor at Apollo Management and is currently the Ch
27、airman of the Board of Directors at Linens n Things (LNT). Mr. DiNicola served as the Chief Executive Officer and Chairman of the Board at LNT from 2006 to 2008. He served as the Chief Executive Officer and Executive Chairman at General Nutrition Centers during 20042005. Mr. DiNicola also held numer
28、ous positions with Zale Corporation, including Chief Executive Officer and Chairman from 1994 to 2004. Prior to joining Zale Corporation, he served as the Chairman and Chief Executive Officer of the Bon Marche, a division at Federated Department Stores. Mr. DiNicola has also worked for Macys and The
29、 May Department Stores Company. George G. Golleher Board: Non Executive Board Job Title: Director Since: 2007 Mr. Golleher has been a Director at Claires Stores since 2007. He is currently the Chairman and Chief Executive Officer at Smart a total of 3,407 stores. Claires spent approximately $13.9 mi
30、llion of its capital expenditure in the second quarter of FY2011 on remodeling projects and opening new stores, including two in North America and 26 in Europe. The Claires brand entered the Polish market a year ago by opening 16 stores across the country. These stores are located in Warsaw (three s
31、tores), Wroclaw (two stores), and one each in Krakow, Poznan, Opole, Koszalin, Bialystok, Radom, Kielce, Swadzim (near Poznan), Lodz, Katowice and Piaseczno (near Warsaw).The company also plans to open 14 more stores during 201112.The Polish market offers growth potential as consumers are becoming a
32、ware of fashion trends. In addition, the spending per capita is relatively high, which would benefit retailers such as Claires. Opening new stores in new locations enables the company to cater to a larger customer base, thus driving sales. Growth trends in online retail An increase in the number of
33、consumers shopping online presents huge growth potential for the company. E-commerce sales have been growing at a steady pace in the US. According to the US Department of Commerce, the e-commerce sales in the US totaled $166.5 billion in 2010 compared with $45 billion in 2002, representing a compoun
34、d annual growth rate (CAGR) of 18% for the period FY200210. e-commerce sales accounted for 4.3% of the total retail sales in 2010. In comparison, in 2002, e-commerce sales accounted for only 1.4% of the total retail sales. Further, the nations retail e-commerce sales reached $47.5 billion in the sec
35、ond quarter of 2011, representing an increase of 3% over the previous quarter.The online channel has several counter recessionary characteristics such as low infrastructure costs which can be passed on to the consumers, and the channel is convenient for shopping. Claires re-launched its US, Canada a
36、nd UK websites in July 2011. It Claires Stores, Inc.Page 17 Datamonitor Claires Stores, Inc. SWOT Analysis launched online shopping in the US as the first part of its multi-phase e-commerce strategy.The updated site provides an extensive selection of accessory and jewelry items such as handbags, hat
37、s and scarves to purchase online. Claires continues to enhance two-way communication with its target customers through email, mobile, and social networking channels. As consumer behavior indicates a significant shift to online retail, the company can leverage its brand name and popularity among cust
38、omers to drive sales through this channel as well. Threats Sluggish discretionary spending could impact the revenue growth adversely Consumers in the US are suffering from high unemployment rate and lower disposable income, which is likely to keep recovery low key as 70% of the US economy comprises
39、consumer spending. The unemployment rate in the US was significantly high at 9.3% in 2009, and 9.6% in 2010. Further in September 2011, the unemployment rate in the country was 9.1%. High unemployment rate reduces the consumer spending as customers feel uncertain about their future earnings. As a re
40、sult, consumers tend to save more.The personal savings rate as a percentage of disposable personal income increased to 5.3% in 2010, compared with 2.6% and 2.4% in 2006 and 2007, respectively. Personal saving as a percentage of disposable personal income was 4.7% and 4.5% in July and August 2011, re
41、spectively.The level of consumer confidence is what determines if the US consumer is likely to spend more, and the confidence has been low in the recent times. Consumers drastically cut back on spending during the recession as unemployment rose and lending slowed.Thus, slowdown in US economy would d
42、epress purchasing power of consumers which could result in a decline in sales of the company. Heavy competition may erode market share The specialty retail business is highly competitive. Claires competes on various levels with other specialty stores, discounters and independent retail stores.The In
43、ternet, direct marketing, and catalog businesses also present significant competition. Department stores, mass merchants, and other chain store concepts are also competitors to the company.The factors on which competition is based include brand recognition, a wide selection of merchandise, value for
44、 money, location of the store and the overall shopping experience. Also, a shift in customer buying patterns to purchasing value-priced jewelry and accessories through channels other than traditional shopping malls, such as the Internet, could have a material adverse effect on the companys financial
45、 results. Tough tariffs on imports from foreign suppliers may increase costs and reduce supply of merchandise Claires does not own or operate any manufacturing facilities.The company purchased merchandise from approximately 700 suppliers in FY2010. Approximately 86% merchandise in FY2010 was purchas
46、ed from suppliers outside the US, including approximately 69% purchased from China. Any event causing a sudden disruption of imports from China or other foreign countries, including political and financial instability, would have an adverse effect on its operations. For instance during 2005, Claires
47、 Stores, Inc.Page 18 Datamonitor Claires Stores, Inc. SWOT Analysis the US imposed trade quotas on specific categories of goods and apparel imported from China, and it could impose additional quotas in the future.There has been increased international pressure on China regarding revaluation of the C
48、hinese Yuan, including recently proposed US Federal legislation to place 25% to 40% tariffs on imports from China unless the Chinese government revalues the Chinese Yuan. In October 2011, the Senate passed a bill that requires the Treasury Department to order the Commerce Department to impose tough
49、tariffs on certain Chinese goods if the Treasury finds China to improperly value its currency.The bill allows the US government to impose duties on products from countries which subsidize their exports by undervaluing their currencies. If such tariffs and duties are imposed on goods imported from China, the supplies of the company would be adversely affected. Claires Stores, Inc.Page 19 Datamonitor Claires Stores, Inc