Offering a historically-themed alternative to Barbie, American
Girl Brands produces the American Girl Collection of 18-inch,
high-dollar dolls such as Addy Walker (an escaped slave) and
Rebecca Rubin (a young Jewish immigrant). The company also makes
modern dolls with a focus on "strong character," publishes
American Girl magazine and American Girl books (some 155
million copies sold), and sells room décor, clothing, and
accessories. Other brands include Truly Me, Girl of the Year, Bitty
Baby, and WellieWishers. American Girl Brands markets its products
through catalogs, its website, and in about 20 stores. The company,
which operates primarily in the US, is a subsidiary of toy giant
Mattel. It was founded by Pleasant Rowland in 1986.
Geographic Reach
American Girl products are sold primarily in the US. Flagship
American Girl Place stores are located in Chicago, Los Angeles, and
New York City. Other US locations include Atlanta, Dallas,
Miami, Nashville, Seattle, and Washington, DC. Its products are
available in select specialty stores in Canada, as well as
through three franchise stores in the United Arab Emirates.
The company has warehouse and distribution facilities in
Middleton, DeForest, and Wilmot, Wisconsin.
Sales and Marketing
Boasting some 87 million visitors to date, American Girl stores
have become destinations for mostly females of all ages. Besides
its portfolio of flagship and smaller namesake stores, American
Girl peddles its products directly to consumers through its catalog
and online store. The company's children's publications are sold to
certain US and Canadian retailers.
Financial Performance
A subsidiary and reportable segment of Mattel, American Girl
Brands posted 2017 sales of $452 million, a 21% decrease vs. 2016's
$571 million. It reported a loss that year of about $73 million
compared to income of $106 million the prior year. The brand has
been struggling for several years.
Strategy
With limited retail reach and relatively pricey dolls, American
Girl Brands has been struggling in recent years (sales fell some
25% between 2013 and 2017). It has tried temporary, pop-up store
locations as well as store-within-as-store areas in now-bankrupt
Toys "R" Us sites. In addition, the company has been
shuttering some operations (including a Wisconsin call center and
warehouse in 2018) and cutting jobs.
New management at parent Mattel maintains American Girl is still
a key brand for the company and has announced a turnaround plan for
the subsidiary that includes focusing on price value, restoring the
premium retail experience through better merchandising and
marketing, investing in superior customer data to improve direct
marketing and loyalty programs, and modernizing the content
ecosystem around the brand.