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Limited Too is Out, Justice is In. Is it the Right Switch?

Posted by Loobalee in News & Trends

Aug|20|2008

Justice Just for Girls

Can you believe it? After 20 years of building up significant brand recognition, Tween Brands is (literally) all-out ditching its Limited Too brand in favor of switching over all of its stores to its more profitable Justice – Just for Girls. Read the official news on the Tween Brands investor’s website in their 8/12/08 press release.Limited Too

What does this mean? By first quarter, 2009, we’ll see approximately 600 Limited Too stores convert to Justice Stores. There are over 300 Justice stores today. Of the total 900+ stores, about 10% will either close or be put on a watch list for possible closure in the future.

At a high level, it seems quite obvious that Tween Brands would run into an issue competing with themselves in virtually the same market, so the fact that a change is occurring is not surprising.

What is surprising, however, is their choice of direction. Giving this a cursory glance and using my basic math skills, I’ve got to believe this is an expensive, high risk move. Wouldn’t it be less risky and less expensive to convert all stores to Limited Too? This would only be 300 store conversions and would leverage Limited Too’s long-standing brand recognition.

We live in a market that recently opened a Justice store about 15 miles away, but where we’ve had a Limited Too store in existence for years. The girls in our Tween Brands’ target market have hardly heard of Justice, let alone developed the brand ‘loyalty’ they express with Limited Too.

Even my 6 year old daughter brought up an excellent point, “Mommy, will they have to change the Limited Too outfits at Build-A-Bear to Justice outfits?”. I wonder if Tween Brands has considered the extensive reach of the Limited Too brand in their decision.

With either direction, there would be some transformation and tuning of their merchandise offerings to meet expectations and retain the customers of both stores. It appears that the driving force in the direction chosen was the assumption that customers prefer the lower pricing model of Justice.

I disagree. I do think that Justice currently offers a better match of quality with pricing, but I don’t think that lowering the pricing model of Limited Too would be an insurmountable task — especially if they have found a way to keep their current Limited Too leases and real estate in tact, while switching them to Justice stores. Additionally, the distinction in quality between Justice and Limited Too is not always perceptible. The designs are different – yes, but does the difference in quality justify the price difference – upwards of 25%? I don’t see it.

While I do agree that Limited Too’s pricing is too high, thus artificially inflating the value and perceived quality of their clothing, I suspect they may not be making the right choice in dropping the brand.

A part of the equation in the decided direction that is missing is the quality factor. I’m not buying that Tween Brands target customer just wants cheaper clothes. Rather, they don’t want to pay prices that are too high for the quality. If Tween Brands can find a happy medium in their transformation to offer a desirable mix of pricing, quality garment construction, and quality designs, it may be irrelevant which direction they chose. After all, the tween market is significantly lacking in this space, especially for girls ages 8-12.

Hopefully this natural force being placed on Tween Brands to reconcile the best of both competing brands will motivate them to deliver the quality and designs at the prices the market desires. While there could be some trial and error initially, I hope they can get their formula right as they merge the best of both brands under one roof — but, only time will tell if they have chosen the right roof.

What are your views on this decision? Can the Justice for Girls, with 800-900 stores, withstand the expectations of Limited Too customers? Do you think Tween Brands will be successful? Please comment and share your views.

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14 Responses

  1. Cynthia

    19|Nov|2008

    Shrink was an important decision factor in the decision to convert Limited Too stores into Justice stores.

  2. Taylor

    09|Jan|2009

    I personaly don’t want Ltd2 to go away.

  3. Shelly

    13|Jan|2009

    I agree- Limited Too really had a reputation built up already. We liked the opportunities to save w/ Too Bucks and sales if we felt prices were too high. We just got our catazine introducing Justice and the styles seemed more juvenile than Limited Too. Good for the younger group, but my 13 year old will most likely lose interest. There are already many little kids’ stores out there.

  4. Christine

    15|Feb|2009

    I have always loved the quality & affordability of the Justice brand. Since the merge between the two companies I have noticed increased detail on their products being offered at the same or lower pricing. I love how they have looks to appeal to both the younger & older girl. I think many will be impressed. FYI…limited too WAS derived from The Limited & broke off from them back in 1999! I like the fact they changed the name to end ties to them, and who wouldn’t love the lower prices!

  5. Loobalee

    16|Feb|2009
    Thanks for the comments Christine! I visited a large Justice store over the weekend, and it exceeded my expectations. I was happy to see that they were still offering some great discounts (last weekend was 40% off whole store) even with the new, lower pricing model. In some of inquiries about the transition, I learned that the Limited Too designers were primarily kept during the merger. I think we’ve all had an emotional connection to Limited Too, so it may take some consumers a while to warm up to Justice. But, over time, I think Justice will do well with their new model.

    Suzanne

  6. jordan

    29|Mar|2009

    limited too has more of a variety. justices clothes kinda XXXX [edited by Loobalee]! change it back to limited too! no one likes justice!!!! their clothes are ugly! im outraged with this!!!!!

  7. jordiie

    29|Mar|2009

    justices clothes are kinda really ugly …. limited too was wayy better. that was not really a smart choice to change thatt! switch it back!!!

  8. jordiie

    29|Mar|2009

    CHANGE IT BACK!!!!! LIMITED TOO IS BETTER!! IM REALLY OUTRAGED!!!

  9. Eva

    04|Jun|2009

    I think that it was a good idea. Everyone who knows about Limited Too already knows about Justice and the big switch. So everyone who went to Ltd2 should just go to Justice instead. Besides, the mostly sell the same clothes, and Justice sells them for better prices (even helpfuller in this bad economy).

  10. Loobalee

    05|Jun|2009
    Thanks for the comments! As I casually ask people about this, there is approximately a 50/50 split in current behavior. Some people have stopped going to Justice all together – seeking other brands. Others remain solid fans, see the similarities with Limited Too, and like the prices. It seems the people leaving don’t trust the Justice brand yet (quality, style, etc.), and don’t perceive it to be as “in” or popular as Limited Too. I think to be successful Justice needs to focus on the younger girls coming into their size range and work on keeping their interest (as well as their Moms!).

  11. Kenna

    16|Jun|2009

    I really liked Limited Too, especially since I only got it when I visited the mainland. I have never even heard of Justice, and suddenly Limited Too is gone. I’m not sure if there is any difference in the clothes, but I guess Justice is okay.

  12. Loobalee

    16|Jun|2009
    Hi Kenna,

    Thanks for visiting! Your comment is interesting… we live in an area where there previously weren’t any Justice stores too. So, if not for my travels and research I wouldn’t have been familiar with them before the switch either. I think there is some intentional difference in the clothing, though I understand from the sales representatives at our local store that mainly the Limited Too designers were retained in the transition.

  13. out of justice

    19|Jun|2009

    I was always a big fan of limited too. One day my mom and I discovered Justice. First we thought it was a rip off of limited too. But the clothes were okay and the prices weren’t as high as limited too. But I still liked Limited Too better. I really liked getting the catazines.

    But I have to say after a while they kept using that funny looking blonde girl in all of their pictures!! I really really really didn’t like
    the way the clothes and swimsuits looked on her. It got to a point where
    I would throw away the catazine if I saw even one of her pics.

    I’m a big fan of Justice now. But I really miss the Limited too stores.
    they were fun and kind of special. I feel like I am in Target or Walmart when I go to the Justice store. no videos or cool music or wavy door dressing rooms. nicer people worked at Limited too.

  14. Loobalee

    20|Jun|2009
    Hi “out of justice”,

    Thank you for the comments and finding our blog! I hadn’t thought about your analogy to going into a Target or Walmart before, but I think you’re onto something. The store experience is definitely different than Limited Too. Tween Brands – if you’re listening… there’s definitely something to consider here. While I think Abercrombie Kids is way over the top with their experience, I think there’s merit in creating a unique, recognizable, consistent store experience that attracts your target audience. Hopefully that will come around as Justice “settles in”.


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