CABOODLES GOES UPSCALE
Byline: Faye Brookman
LAS VEGAS — Caboodles Cosmetics LP has helped mass market retailers such as Target and Walgreens tap teenagers. Now the company, based in British Columbia, hopes to do the same for department store companies.
Caboodles has created an entirely new line called C Me scheduled to ship this August. The first retailer to sign on is May Department Stores Company.
“We realize there is a segment of the business we have not addressed,” said Debbie Murtha, senior vice president, general merchandise manager for May, who said C Me is just the beginning of efforts the company is taking to court young shoppers.
Initially, C Me will be in about 200 May doors such as Lord & Taylor, Strawbridge and Famous-Barr based on store demographics and the size of the juniors business, according to Murtha.
“Department stores are craving the success at mass with teen-inspired products,” said Gary Schofield, president of Caboodles Cosmetics. “To capitalize on this, we are developing brands at the department store level.”
Murtha said May sought out Caboodles since the company had done a credible job of pioneering the category in mass. “They have the credentials and that’s important when you are building something like this.”
According to Schofield, C Me was developed to attract 15-to-21-year-old customers looking to “crossover” to department stores from specialty or mass stores. C Me will be positioned on a self-service, 8-foot fixture near cosmetics and adjacent to young fashions. Although there won’t be testers on the fixture, Schofield said there would be an area for experimenting with the products. The products, packaged in funky square designs include eye, lip and glitters that have become Caboodles’ trademark. For example, there will be a pouf that dispenses glitter. “We’ve really worked hard to give this customer what she wants,” explained Stella Tinglin, brand manager behind C Me.
What’s notable is that price points will range from $4 to $8 — a significant value in department stores, especially versus other young brands such as Stila. The price point allows department stores to compete on par with mass offerings. The mass Caboodles cosmetics are priced $2.99 to $6.99.
Although C Me bows in May stores, Schofield said he eventually hopes to see the brand sold in other upscale venues as well. His company is also working on brands for other department store companies eyeing the lucrative youth market. Industry sources expect Federated Department Stores will also introduce a youth-oriented brand.
Projections call for the premium portion of Caboodles business to grow to $10 million in wholesale dollars within the next 12 months and Schofield believes it could swell to as much as $40 million within the next few years.
“Although we are known for mass market products, department stores are seeking us out because of our expertise in reaching young customers,” said Schofield. Industry sources estimate the company has retail sales in excess of $52 million.
The traditional Caboodles line, he added, is the number one teen brand in Target. The brand has been one of the fastest growing offerings for young girls and is now in 11,000 stores nationwide. Schofield said Caboodles has worked with retailers to help streamline ordering systems, which have reduced out-of-stocks on the brand. To fine-tune the mix, Caboodles is phasing out slower moving stockkeeping units to make room for more productive items. A carded presentation that is now available is yielding greater distribution opportunities in supermarkets, Schofield said.
Schofield also sees tremendous growth opportunities in international markets. Caboodles in now sold in countries such as Italy, Australia, Spain, Germany and New Zealand.
The Caboodles makeup products have also helped net more distribution for Caboodles’ bath and body and makeup kit collection. Tapping into the desire for glitter, Caboodles bath and body has added more shimmer products. New items include a roll-on body glitter, a tilted light bulb bottle with shimmer body fragrances, new fruity-flavored lip balms and shimmery bath gels with floating stars. “Teen usage of bath and body products is extremely high,” said Leonie Mateer of She Designs, creative consultant to Plano Molding, the maker of Caboodles bath and body and cosmetics boxes. “Luring teens away from mall shopping has been our focus. Our line offers teens products that are usually found in specialty-type stores at much higher prices.”