Imagine walking into a Claire’s store in the early 2000s: purple carpets, sparkling jewelry, and a buzz of excitement from tweens eager for their first piercings or a BFF necklace. This was a retail formula centered on merchandising and curating products that appeal directly to young, trend-conscious consumers. However, the company’s recent bankruptcy highlights a crucial lesson in marketing: even beloved brands must adapt to survive.
Enter new ownership by private equity firm Ames Watson, which aims to revamp Claire’s by modernizing store interiors, upgrading product lines, and emphasizing real-time marketing through social media. Their strategy echoes that of their success with Lids, which doubled its store count and revenue by focusing on exclusive products, tailored store experiences, and authentic community engagement rather than solely pushing e-commerce.
This story exemplifies how competition influences merchandising decisions. Claire’s faces fierce rivalry from online marketplaces to fast fashion brands which has forced its new owners to rethink its approach and offer unique in-store experiences that digital competitors cannot replicate. By reinstating exclusive merchandise and enhancing the piercing experience, Ames Watson hopes to reclaim Claire’s former cultural relevance amid an evolving retail landscape.
For marketers, Claire’s struggle to survive illustrates the importance of offering appealing product assortments and understanding consumer loyalty. It reminds us that strong branding and customer engagement are vital, especially when competing with the convenience of online shopping and the highly sought-after tween market.
Discussion Questions and Activities:
- Is the Claire’s brand strong enough to pull out of bankruptcy with a brick-and-mortar retail strategy? Why is the in-store experience important for brick-and-mortar retail, especially for brands like Claire’s?
- How does merchandising influence a brand’s ability to compete in today’s retail environment?
- What are some effective ways a brand can use social media marketing during a brand revival?
- Create a mock merchandising plan for Claire’s renewal, focusing on product selection and store layout.
- Design a social media campaign aimed at re-engaging former Claire’s customers and attracting new ones.
- Analyze a competitor and identify strategies they use to stay relevant in the youth market.
- Have students watch a brief video from CNBC here https://www.youtube.com/watch?v=ZlwvsQR4xEQ.
Sources: Kapner, Suzanne (18 Sep 2025) New Owners Plot Comeback for Tween Retailer Claire’s, Wall Street Journal. Moss, Linda (19 Sep 2025) New Claire’s Owner to Attempt Rebound with Smaller Sore Fleet, CoStar News.
