U.S. RETAILERS In the business of tots' togs, it's a baby (clothing) boom

The economy may suffer, but people still want their kids to look nice.
MINNEAPOLIS-ST. PAUL STAR TRIBUNE
The most valuable consumers in the apparel business right now are people who carry no cash, have no credit cards and often spit up dinner on their new clothes.
They're infants and toddlers -- and at a time when sales in many apparel categories are flat or declining, they're fueling a major boom in baby clothes.
While overall clothing sales dropped about 2 percent in 2002, sales of infant and toddler clothing shot up nearly 21 percent.
Sales of clothing for newborns and children through age 3 totaled about $13 billion nationwide in 2002, according to the NPD Group, a market-information firm in Port Washington, N.Y.
That nearly matched the $14.3 billion in sales for the much larger group of kids ages 4 through 12.
There's no baby boom to account for the spike in clothing sales. The percentage of children younger than 5 actually has fallen nationwide from 7.4 percent in 1990 to 6.8 percent in 2000.
Why the boost?
What makes baby clothes such a bright spot in a still-sluggish economy? Well, for one thing, babies are cute.
"It's fun to dress them up," said Jennifer Geller of Mendota Heights, Minn., mother of 5-year-old Jack and 2-year-old Mimi. "I get more pleasure out of seeing them look a certain way than putting on a new pair of pants myself."
Sara Rahn of Edina, Minn., mother of 10-month-old Noelito, agreed.
"When I take him out, I'm not so concerned about how I'm dressed, but I make sure my child is dressed to the nines," she said.
Geller and Rahn are regulars at Oilily, one of several upscale children's shops in the Galleria mall in Edina. Judy Reichert, manager of Dutch-owned Oilily -- which also sells women's clothing -- said her store's overall sales are up about 12 percent this year, with sales of baby clothes up 21 percent.
The toddler trend shows up nationally in the latest sales figures for Toys 'R' Us, the giant New Jersey-based children's retailer.
In its latest quarter, ending May 3, overall sales at the chain's flagship toy stores were down nearly 3 percent from last year. Sales at Kids 'R' Us, the chain's clothing stores for older children, were down 20.5 percent.
But at Babies 'R' Us, the infant-and-toddler division, sales were up 10.4 percent. Babies 'R' Us sells furnishings and supplies in addition to clothing.
Gift-giving helps
Infant and toddler clothing sales get a big boost from gift-giving, said Marshal Cohen, chief industry analyst for the NPD Group.
"In the kids' business, more than any other business, the gift-giving syndrome is a tremendous part of the buying pattern," Cohen said. "And people who give gifts tend to give brand names and designer wear."
There's also the fact that babies and toddlers grow more quickly than adults and older children, Cohen said, meaning that their wardrobes need to be replaced more often.
And a natural parental desire to nurture children keeps sales humming even in a down economy, said Ellen Tolley, a spokeswoman for the National Retail Federation, an industry group based in Washington.
"People always want to be able to provide for their kids, and when it comes to cutting corners, most people don't want their kids to have to be involved in that," Tolley said.
Parents may be responding to some of their own childhood issues in the way they buy for their children, said Kelly Beggin, a marriage and family therapist in Golden Valley, Minn.
"For example, if they didn't have nice things and they were teased, they might try to make sure their children don't face that situation."
Roedler, of Baby Grand in St. Paul, said another factor is the trend toward later births. According to the U.S. Centers for Disease Control and Prevention, births to women ages 30 to 44 were up about 2 percent in 2001.
"People are waiting until later to have their children," Roedler said. "My older customers are more particular. They want nice quality. Grandparents are living longer, too."
Perhaps the best answer is the simplest one, Roedler said.
"This is one of the industries that isn't affected [by the economy]," she said.