Orchestra’s childcare segment sends sales soaring

By

Marion Deslandes

Translated by
Erin Floyd

Published
Apr 14, 2017

Orchestra has maintained its show of health for the year 2016/2017. In the fiscal year closed 28 February, the French childcare and childrenswear group has recorded a revenue of 609.4 million euros in 2016/17, up 8.9% over the previous year.

Orchestra has maintained its show of perfect health in 2016/2017. In the year end 28 February, the French childcare and childrenswear group has recorded a revenue of 609.4 million euros in 2016/17, up 8.9% in comparison to the previous year.

Orchestra has attributed the growth in part to its rising brick-and-mortar presence, its international retail surface area having risen from 260,000 square metres to 293,000 metres in one year. The group, founded in 1995 by Chantal and Pierre Mestre, now operates 312 subsidiaries and 255 affiliates – that is to say, 20 more than last year. And the brand is concentrating on the opening of new XXL stores in suburban areas - of over 800 square metres- which will gather together its childrenswear, childcare and maternity offerings.  

Most significantly, the group is relying on the skyrocketing sales of its childcare segment, which surged by 50% over the fiscal period. The segment now represents 109 million euros, or 18% of the total sales (compared to 13.1% the previous year). The finding contrasts with the sales of textiles-only stores (300 -500 square metres) where sales sagged by 5.3% over the period. The brand’s large format – a model to which 49% of its stores conform – thus seems the obvious solution to combat the stagnant French childrenswear market.

Orchestra has also made inroads abroad: its international sales have seen growth of 14.5%, standing at a considerably 147.3 million euros, compared to 128.3 million euros in 2015/2016. The brand’s online sales have also seen a two-digit increase, rising by 10.7%.

The group was also positive about its increasing customer loyalty: 1.8 million customers hold Club (loyalty) cards, a rise of 6.7%, who generate 90% of its turnover.  

It’s all systems go for the group, which is currently merging with American firm Destination Maternity in a transaction that will create a group worth over a billion euros and driving Orchestra beyond its national borders. Its first monobrand store in the U.S. is set to open in Philadelphia in May.

In Q4 alone, sales rose by 8.6% to 147.8 million euros. In the French market, where the group generates 61.7% of its turnover, recorded growth of 5.7% for the period compared to 13.6% in the international arena. The subsidiaries led the way with an increase of 9.5% while affiliates saw a lesser progression of 2.5%.