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HOT TOPIC INC. /City of Industry, California Retailer Sees Big Growth In Plus-Sized Teen Wear.(A)

Investor's Business Daily

| April 03, 2001 | COPYRIGHT 2001 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

By Marilyn Much

Investor's Business Daily

Hot Topic Inc.'s Betsy McLaughlin knew she was on to something when customers started calling for trendy plus-sized clothes.

As president and chief executive of the teen retailer, McLaughlin reads all of the input customers give via in-store report cards or features on the company's Web site.

By keeping in constant touch with customers, management stays tuned to what's going on in the teen world -- and keeps its pulse on emerging concepts.

When McLaughlin has an inkling one of those concepts is really hot, she moves quickly. That was the case 18 months ago, when she began hearing pleas for plus-sized clothes. Her team began testing expanded sizes in a few stores and put a page of plus-sized clothes for order on its Web site.

The experiment was so successful that Hot Topic rolled out plus-sized clothes in most of its stores. Now, after months of research, focus groups and customer feedback, the company is about to take the next step: giving young females a plus-sized store of their own.

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