Children's Place Looks to Lessen Reliance on Discounting Strategy -- Market Talk

Dow Jones04-11

1722 ET - New management at Children's Place has two main issues related to margins: President Trump's tariffs and a tradition of discounting. The retailer is trying to reverse course on its markdown habits, says Executive Chairman Turki AlRajhi. "I believe that TCP has unintentionally cultivated behavioral habits among customers that encourage shopping during clearance and promotional events," AlRajhi says. Children's Place has looked to optimize its promotions since the Saudi Arabian AlRajhi family took over through the investment firm Mithaq Capital. Still, the company is not in a position to make drastic changes. "Since U.S. consumers are driven in part by promotions, promotions remain a crucial element in the competitive landscape." Shares drop 3.4% to $6.55 in post-market trading. (sabela.ojea@wsj.com; @sabelaojeaguix)

(END) Dow Jones Newswires

April 11, 2025 17:22 ET (21:22 GMT)

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Children's Place has looked to optimize its promotions since the Saudi Arabian AlRajhi family took over through the investment firm Mithaq Capital. Still, the company is not in a position to make drastic changes. \"Since U.S. consumers are driven in part by promotions, promotions remain a crucial element in the competitive landscape.\" Shares drop 3.4% to $6.55 in post-market trading. 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Children's Place has looked to optimize its promotions since the Saudi Arabian AlRajhi family took over through the investment firm Mithaq Capital. Still, the company is not in a position to make drastic changes. \"Since U.S. consumers are driven in part by promotions, promotions remain a crucial element in the competitive landscape.\" Shares drop 3.4% to $6.55 in post-market trading. 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