Deacons eyes price cut to spur sales of children clothes

What you need to know:

  • This comes after the firm adopted a new business model that eliminates middlemen from its supply chain.
  • Deacons said removing the middlemen will minimise operational costs, a benefit that will be passed down to the consumer in form of reduced prices.
  • The firm announced plans to close the Junction Babyshop outlet at the end of February due to what the firm terms as “unfavourable size”.

Fashion retailer Deacons East Africa has hinted at a price cut to boost children clothes' sales in Kenya.

This comes after the firm adopted a new business model that eliminates middlemen from its supply chain.

Deacons said removing the middlemen will minimise operational costs, a benefit that will be passed down to the consumer in form of reduced prices.

The fashion retailer, which rebranded its children clothing franchise Baby Shop at the beginning of the month to Deacons Kids, is also looking to introduce wide-ranging products for children of up to eight years.

“While focusing on our client’s needs, we have worked closely with various stakeholders to develop a brand identity that represents what Deacons is all about.

"The restructure represents our ambitions and demonstrates how Deacons is passionately connecting customers to their desired lifestyle,” said Deacons chief executive officer, Muchiri Wahome.

Deacons Kids outlets are located in Thika Road Mall (TRM) and at the Sarit Centre.

'Unfavourable size'

The firm announced plans to close the Junction Babyshop outlet at the end of February due to what the firm terms as “unfavourable size”.

The announcement comes after the firm posted net loss of over Sh200 million in 2017, blaming this poor show on, among other things, the electioneering period, impact of Nakumatt’s downfall as well as inflationary pressures occasioned by the prolonged drought in early 2017.

“This is an exciting time for Deacons as we have continued to grow and develop in the Kenyan retail sector throughout the difficult economic period.

"Deacons Kids shopping experience will be fun, colourful, vibrant with great price value of collections for both girls and boys from the ages of 0 to eight years.

"With this restructure, we aim to continue being a market leader in the retail sector,” said Mr Wahome.