US fashion retailer Tween Brands will refocus its core business by converting its Limited Too stores to its more value-led brand Justice.

The retailer – which sells speciality fashions for seven- to 14-year-olds, often referred to as tweenagers – expects the move will help it drive growth and achieve an after-tax saving of between US$20 million and US$25 million (£10.7 million and£13.4 million). It said the savings will come from a streamlined head office, and reduced marketing and store operations spend.

Tween Brands will convert about 560 Limited Too stores by the first quarter of next year and only continue selling its Limited Too branded product in selected Justice outlets. Once the overhaul is complete, there will be 900 Justice stores across the US.

Justice has proved a more popular proposition, with its 310 existing stores achieving double digit like-for-like growth for the past 14 quarters.
Tween Brands chairman and chief executive Mike Rayden said: “This is a bold strategy to capitalise on the success of Justice and the changing trends in our economy and customer preferences.”

He added: “In these tough economic times, our customers are seeking the more value-oriented apparel available at Justice, which is priced on average 20 to 25 per cent lower than Limited Too.”

In the 13 weeks to August 2, Tween Brands made a net loss of US$6.7 million (£3.6 million). In its second half, it expects like-for-like sales to be down as much as 9 per cent.