Delta drops subsidiary kids clothing company
Delta shuts down its daughter company- Delta Kids due to revenue losses. Intends to unify Delta brand
The decision to shut down the company, came in light of the company's spiraling losses in their US branches and a freeze in the operational revenue in Israel.
Subsequent to launching Delta Kids as a separate clothing chain in February 2011, the company's management came to realize that the store created a larger profit under a unified Delta brand, offering clothing to the whole family.
The company is planning to open 14 new Delta stores in the first half of 2012.
Delta's sales increased by 9% in 2011, opposed to the previous year and are estimated at $678.8 million. The operational revenue rose to 28% and is estimated at $39.7 million. The jump in operational revenue became possible following the newest additional brands sold at Delta stores- Victoria's Secret and Nike.
