New Hire, New Stores May Cure Bebe's Blues
Bebe Stores Inc. has been experiencing flat to negative same-store sales this year, and next quarter doesn’t look any better.
The company predicted that the next three months will see same-store sales in negative territory again.
However, the Brisbane, Calif.–based womenswear retailer might regain its lost footing with help from a new hire and growth in its outlet division, said Gregory Scott, Bebe’s chief executive.
On Aug. 6, Bebe hired Erin Stern, a former president of Old Navy’s outlet division, as president of its flagging Bebe Sport division. She will oversee the division’s design, merchandising and manufacturing but will also preside over the new Bebe Sport footwear line, to be produced by Manhattan Beach, Calif.–based Skechers USA Inc.
Scott announced more stores and a fresh name for Bebe’s outlet division. The former Bebe O outlet stores will chart new growth opportunities under the name of 2 B Bebe. The company will open more than four 2 B Bebe stores in the next year. Currently there are 20 Bebe outlet stores.
The new outlet stores aren’t expected to cut into Bebe’s business, according to Scott, because only 8 percent of Bebe’s shoppers cross over into the outlet stores.
2 B Bebe is expected to attract a younger, more casual consumer, with expanded categories and clothing produced specifically for the outlet stores.
The company’s main Bebe concept also will find more growth in the upcoming year. The company forecast that it will open more than 25 Bebe stores in fiscal year 2008, along with more than eight Bebe Sport stores. —Andrew Asch
