27 Apr 2010

Pumpkin Patch to launch cheaper brand

10:26 am on 27 April 2010

Listed retailer Pumpkin Patch has announced plans to launch a new stand-alone children's brand in Australasia.

The name of the brand is being kept secret for the moment but it will stock everyday clothes that are cheaper than the more upmarket, fashion-based Pumpkin Patch brand.

Chief financial officer Matthew Washington says the playwear market, which is dominated by department stores, makes up about 70% of Australasia's $3 billion children's market.

Mr Washington says the new brand should only cost a few million dollars to develop and the company hopes to open up to eight new stores by the end of this year.

He says the rollout is not expected to have an immediate effect on earnings or debt and should boost earnings and cashflow over time.

Shares in Pumpkin Patch closed up 2 cents to $2.22 on Monday.