The Children’s Place is betting on Hello Kitty and other branded partnerships to woo millennial parents

The launch exemplifies a newer strategy for The Children’s Place, a specialty retailer from 1969. This summer, it began partnerships with properties like Disney, Hurley, Lionel Messi and Russell Williams’ Nike 3Brand. Claudia Lima-Guinehut, who became brand president in 2024, told Modern Retail that The Children’s Place is taking a fresh approach to merchandising and marketing, betting on “culturally-relevant” brands and beloved characters to woo families interested in the latest in media, entertainment and sports.

The retailer is also hoping that attracting more young parents with growing purchasing power will help reverse company-wide sales declines. In its most recent quarter, comparable sales for The Children’s Place, Inc. — which operates The Children’s Place, Gymboree, Sugar & Jade and PJ Place — fell 13.6%. In today’s economically challenging environment, “millennial parents are values-driven, experience-focused and extremely discerning, when it comes to where they shop,” Lima-Guinehut said in an interview.

“They want culturally-relevant brands and great quality at great prices, … and kids want to come into our stores and pick up things that resonate with them,” she said. “When we do this well, we create loyalty that spans generations.”

The Children’s Place carries sizes 0 to 18, spanning babies, toddlers, children and pre-teens. Over the last few months, its partnerships featuring names like Spider-Man and Messi have helped the company achieve “meaningful growth” in customer acquisition, especially when it comes to babies and older boys, Lima-Guinehut said.

This is important, Lima-Guinehut said, because it helps with “increasing and improving our lifetime customer value.” For instance, “we know boys at a certain age want branded product for active, so Nike 3Brand helps us retain them longer,” she explained. “On the flip side, we know that girls at a certain age are aging out of The Children’s Place. A Hello Kitty collab helps us retain them longer, too.” In addition, The Children’s Place’s deal with Huggies this spring — a collection of bodysuits, coveralls and more — “gets mom into the funnel at the very start of her journey,” Lima-Guinehut said.

The Children’s Place, Inc. has had a bumpy past year and a half. In February 2024, it warned of liquidity concerns, and in March 2024, it got a new majority shareholder, Mithaq Capital SPC. Jane Elfers, the company’s longtime CEO, announced her departure in May 2024 under a “mutual agreement” with the retailer. The company brought on a new chief financial officer in March 2025.

During its fiscal first-quarter earnings, which it reported in June, The Children’s Place, Inc. posted a quarterly loss that was three times wider than analysts’ estimates. Its net sales totaled $242.1 million, down 9.6% from the prior year. Interim CEO Muhammad Umair said the company’s performance was related to “the current macroeconomic environment, including softer consumer sentiment and particularly unseasonable weather patterns,” as well as an increase in shipping minimums. He added that “the tariff situation and its impact on our core customer continues to bring significant uncertainty and headwinds to our near-term results.” As of 2022, The Children’s Place contracted with third-party vendors in 20 countries, including China, India and Bangladesh.

With its new partnerships strategy, The Children’s Place hopes to bring more people into its stores (which number 500 in North America) and onto its website. It’s tried other ways of courting new shoppers in the last few years, including in 2024, when it launched a storefront on Shein. The Children’s Place has also partnered with celebrities including Mariah Carey, Khloé Kardashian and Snoop Dogg on marketing campaigns.

Melissa Minkow, director of retail strategy at digital consultancy firm CI&T, said The Children’s Place’s partnerships strategy “makes sense,” especially because children today consume so much media. “Kids at a younger age are exposed to more and more content, whether that’s on their own phones or TV or YouTube,” she said. Having a character like Bluey or Hello Kitty on a shirt is “relevant to the kids,” Minkow explained.

Minkow also pointed out that kids’ clothing turns over quickly, since kids grow so fast. “This is a space where being on trend and being timely actually matters, because you’re changing out your kid’s wardrobe,” she said. “There’s more opportunity to create new product that will resonate. … Kids’ tastes are evolving all the time.”

In addition to carrying items tied to buzzy entertainment properties, The Children’s Place is making additional changes to cater to today’s young families, Lima-Guinehut said. “We’re investing in everything from product innovation and inclusive design to digital tools, all through the lens of relevance and convenience,” she said. The brand partnerships are one factor in this, “adding dimension to the experience,” she explained.

“We’re engaging with parents emotionally, and we’re giving them reason to return and share,” Lima-Guinehut said. “We’re bringing in brands that are trusted and that we know can help us become a one-stop shop. That’s a huge win for us in today’s crowded landscape.”