Gen-X, Millennial Female Opps: Chico's focuses on digital marketing to attract younger customers (Score 35)
Chico's FAS increased Q4 sales and acquired new customers at a higher rate in 2020, primarily because of the digital transformation we told you about last year. It also had success finding younger customers, per its recent 2020 Q4 earnings report, which is part of the reason it has been transitioning to a digital-first company. It also plans to close between 13% and 16% of its stores over the next three years. Evidently, Chico's believes it has a better chance succeeding through eCommerce. Chico's is working to improve its marketing capabilities through more engaging, personalize and targeted messages in order to improve brand awareness, engagement and traffic.
Sellers-- Chico's does not utilize national TV ads which is somewhat rare for a company its size. It seems to be investing more in social media ads, especially Instagram, which makes sense considering it is targeting younger consumers. It does still invest in OOH and radio ads, per Kantar. Sellers should reach out offering digital display ads space.
Agency & martech readers-- Chico's has worked with creative agency The&Partnership since 2017. This relationship is likely stable because it has crossed the three-year average agency threshold, and there are no new decision makers to shake things up. It also works with Porter Novelli on PR.