New York City Gymboree has doubled the new store plans for its value-format, Crazy 8. The children’s apparel retailer now plans to open 75 to 100 Crazy 8 stores this year as opposed to the 50 previously announced, according to the San Francisco Business Times.
Gymboree expects the chain, which opened its first store in August 2007, to turn profitable in 2010, the report said.
“It is in our best interest to open as many stores as we can now. With the demand (for our product), construction costs, vacancies -- all of those things are coming together at the same time that our margins are going up because our quantities have increased,” said Matthew McCauley, CEO of Gymboree, in the report.
McCauley said it is cheaper to expand now and the company has been able to negotiate favorable deals for multiple stores with national mall owners and developers.
“It’s a brand that’s resonating with the customer right now,” McCauley said. “We saw an opportunity to reach a lot of moms that want the wholesome look for their kids but didn’t want to spend a lot of money.”