It’s a “reset” moment for Claire’s.
And it’s about time considering all the hurdles and challenges the moderate-priced girls jewelry chain endured over the past seven years, including two bankruptcies, massive store closings, ownership changes, declining shopping center traffic, and intensifying competition from Amazon, Shein and others.
Yet Claire’s, which dates back to 1961, remains a mall staple, with about 900 stores, averaging 1,000 square feet in size, in the U.S. and Canada — and there’s good reason for that. It’s one of just a handful of retailers with scale devoted solely to young girls, with piercing stations that are a rite of passage for millions of girls each year, and items ranging from $1.99 to $119.
Michelle Goad joined Claire’s as chief brand officer this month, becoming the first C-suite hire since the brand’s $140 million acquisition last year by Ames Watson, which saved the business from total liquidation. Ames Watson, a holding company with more than $2 billion in revenues, has a business model focused on operating and transforming businesses for the long term, not selling them after a few years. Ames Watson investments include Lids, LidsU, Champion, South Moon Under, Mitchell & Ness, Ebbets Field, Zygo, Hungry and Margau.
Goad, the top executive at Claire’s, reports to Ames Watson cofounders and partners Lawrence Berger and Tom Ripley. They are orchestrating a transformation of Claire’s centered around improving the piercing experience and the training of piercers, widening the target audience up to 14, and updating the store presentation and the marketing. Before Claire’s, Goad was the chief digital officer of Gap Inc.’s Athleta division. Earlier, she was an executive at Nike leading Gen Z innovation strategies and an operating partner at The Chernin Group.
“Michelle is a proven brand builder with a unique ability to connect culture, community and commerce, especially when it comes to the younger consumer,” Berger said.
In the following Q&A, Goad, who at age 8 got her ears pierced, discusses Claire’s roadmap for change, it’s key to longevity, and what girls of different ages are buying.
Michelle Goad
WWD: What’s behind Claire’s staying power in face of all the recent disruption?
Michelle Goad: Despite the hiccups of the past, the brand is so ubiquitous and well known. It’s our strategic priority to take what’s there and transform it. The piercing experience is really the key driver. We’ve pierced 110 million consumers to date, and we’ll do around 2 million piercings this year. There’s such a draw for this service which you simply can’t get on an Amazon or any online retailer.
WWD: What’s the transformation plan?
M.G.: Starting this summer, moving into back-to-school, you’ll start to see a completely new look and feel to how our piercing experience comes to life. It’s a big investment. We’re also focused on our people. We have some of the most experienced piercers in the industry working in Claire’s, many for 20, 30 years. We’ve created a completely new training program and new standards for piercers. They make it happen.
WWD: Piercing is a big deal, and for some, a procedure causing some anxiety, no?
M.G.: It’s like you’re becoming someone else. It’s truly a core life memory, and so having our piercers help facilitate that is such a magical, important part of that experience and it’s our unique positioning in the market. We serve the 6- to 14-year-old demographic and how our people help those consumers get through their nerves and become that next version of whoever they want to be, that’s a big part of it. We have lots of new tools and techniques, everything that exists in the market at scale in terms of pressurized machines and the mechanics of piercing. It’s all been upgraded. In tougher times, the piercing business has been criticized, for different standards, quality, etc. But in this reset moment, we’re bringing some of those critics to the team, even doctors who have looked at us and have recommendations. We’re taking this very seriously. You’ll start to feel and see changes at the end of summer into the school year.
WWD: Do associates pierce noses or parts of the ear beside the lobe?
M.G.: They do all of the above.
WWD: What are you doing to improve the stores?
M.G.: Our stores should feel as confident and modern as the girls who walk in. They just haven’t. We’re making material investments in store design and experience, with updates beginning to roll out this quarter, you’ll start to see a materially different look and feel at the end of summer. We’re moving from selling items to selling ideas, meaning clarity in the merchandising and assortment so it’s easy to shop and find stories we tell on social. There will be a simplicity to the design with distinct services and experiences. Piercing is obviously our star, but we’re also piloting things yet to be shared with you. This store has sat in a transactional environment far too long. Our consumer demands an experience. All doors will get an upgraded ear piercing experience by back-to-school, and there will be continual improvements [in the store presentations] as a multiyear project.
WWD: How is the merchandise transforming?
M.G.: Our first priority is to win with piercing. Second, to win with a refreshed retail experience and the third to go back to our roots, to an on-trend, on-time assortment. Claire’s was this discovery engine for girls. It always has been where culture showed up in real life. We have to reclaim that role. Trends break constantly on social. We’ve already restructured our team to deliver speed, quality and value without losing that point of view for the brand. The product growth areas and opportunities for us are fashion jewelry, our two owned beauty brands, both makeup-based, and we’ll look to bring in third-party beauty to round out that assortment. You’ll start to see us play in a much deeper way with great media partners and licensing partners, like Disney, where we sell everything from jewelry to plush to candy to accessories.
Pierced earrings at Claire’s
WWD: E-commerce was discontinued last year. Why?
M.G.: We’re the only mall-based brand operating at scale that’s fully dedicated to girls ages 6 to 14. That gives us a unique, powerful, offline connection. Young girls are going into Sephora. They’re going into Starbucks. They’re telling us they want a third place. And I think it’s Claire’s right to win and responsibility to deliver on this need. In the reset, we want to be singularly focused on upgrading our retail experience. That’s the unique positioning of the brand too — giving girls the third place to go. It’s very counterintuitive, but I do think Gen Alpha wants to go places. Year one is really all about resetting the physical store experience. We’ll look to digital commerce in future years.
WWD: Has the target age range changed at all?
M.G.: Being very niche, with a single-minded focus, is really important, particularly for girls. Claire’s has historically skewed very young which made it tough to grow but we’ve expanded to early teenage girls that gives us more range and the right to tell more stories.
WWD: How is serving an 8-year-old different than a 14-year-old?
M.G.: There’s a real difference. After they’re 8, girls are exposed to much more because of social media. They’re going to Sephora and Starbucks and their expectations are quite different. With our product mix, first and foremost, it’s the quality. Are these share-worthy? Are they on trend? And is there a sort of “viral fun” aspect of their products. They want to share with their friends in group chats and on social media, which, obviously, girls don’t do when they’re younger. These tweens want to be taken seriously. So even with those we partner with on the licensing side, you’ll see a shift because we are serving such a much broader age range now.
WWD: How is the merchandising different between ages?
M.G.: With 6- to 8-year-olds, it’s their first piercings, so you’re looking at more of a stud-earring type experience, something laying flat to the ear. With 9- to 14-year-olds, they’re looking at their second, sometimes third piercings. They’re looking for hoops [and] products seen on social media. They’re also exploring identity. That allows you to have more fun with your assortment.
WWD: What are some bestsellers recently?
M.G.: Our collectible plush business, hoops, stacking bracelets, stacking necklaces, personalized necklaces with monogramming and anything mini is working really well. Kim Kardashian over the holidays shared [on social media that] she got pierced at Claire’s, and that she loved our tiny little earrings, so we did a social-first campaign fast, around tiny little earrings.
