Measuring depth and weight—an examination of the health of the kids' department

An industry survey by Christian Retailing

Though many view children's products as more recession-proof than other categories, it seems that they have not been immune to the effects of the economic downturn.

But while Christian retailers see mixed results with resources for youngsters, they recognize that the area remains an important focus of business.

Our latest Vital Signs industry survey focused on the children's department, widely held to have been spared the squeeze seen in other areas because of parents' reluctance to forego products they believe to be important for their children's spiritual nurturing.

Here is what we found:

SIGNIFICANCE

Most Christian retailers (87%) told us they see their children's department as a good way to "build connections" with shoppers, while almost as many (83%) think parents view the section as a "destination" shopping point. However, they were split 50-50 on the value of their children's department as a competitive edge against secular outlets.

Nearly two in five (79%) agreed that children's items provide opportunities for "add-on" sales, but 63% felt that prices on kid's products don't leave enough margin.

SALES

Respondents reported that sales of Bibles for "young readers" and "beginning readers" were trending up, while receipts for just about all other children's categories were either steady or off.  Almost half (44%) of stores said that sales were off in their kids' area, while for 28%, they were up slightly.

Children's product sales amounted to an average 11.4% of total revenues—down slightly from 12.3% two years ago. The chief reason cited for the decline was the "overall economy." However,  stores also mentioned pricing models from suppliers that don't match consumer desires. "Parents see value in a $10 book, but not in a $17 book," one said.

SPACE

The children's department in a typical store is a "normal section with a few items to attract kids" for 52% of stores. Special sections with "kid-friendly colors, features and design" could be found in 36%. The average size of the section was 209 square feet, with the largest being 650. Church stores dedicated an average of 9.5% of space to kids, while non-church stores set aside 14%.

More than half (60%) provided play areas, though less than half (48%) had video screens. About one in four (24%) scheduled a "story time," and very few (8%) offered any sort of reward program.

SUCCESS

The prevailing prediction for the future is for some growth, although less than half (47%) see overall sales going up in their kids' departments. Slightly more than a third (37%) predicted sales will remain where they are. The highest growth potential was seen in Bibles for young readers and for beginning readers (52% and 48%, respectively).

Some stores acknowledged the "recession proof" scenario, but others countered with stories of cash-strapped parents looking for kids' items elsewhere. One store cited "cheesy" production values on some children's DVDs, saying tighter budgets were causing parents to be more selective.

Respondents said that consumers are looking for more books on "sensitive issues" such as divorce, death, illness and what one retailer described as "kids in real-life crisis situations." The market is hungry for video games that aren't "dorky" and for products that will resonate with young boys."

SPIRITUAL VALUE

So, how do available products meet the spiritual needs of today's children and their parents?

Rating six categories on a four-point scale on which 2.8 and above could be considered a solid success, we found that responding retailers and others assessed:

Well done: Children's product currently available in Christian stores "teach important values" (2.83).

Satisfactory: The industry does a good job providing items that "teach fundamental truth" (2.75).

Room for improvement: Understanding the needs of Christian families (2.45), and providing viable entertainment alternatives (2.38).

Must try harder: Products that are competitive in the marketplace (2.29) and engage the next generation of Christians (2.27).

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