Aeropostale Launches Children's Chain

Management believes the market represents a $14 billion opportunity and that the concept can potentially expand to over 500 stores. Analysts say it could eventually be as big as Aeropostale.

Aeropostale will, of course, compete with a handful of other players in their price category, including Children's Place(PLCE Quote), J.C. Penney(JCP Quote), Target(TGT Quote) and Wal-Mart Stores(WMT Quote). There is also substantial opportunity to take away market share from higher-priced children's concepts like Abercrombie & Fitch's(ANF Quote) abercrombie, and J.Crew's(JCG Quote) Crew Cuts.

"With very few players expanding, the level of vacancies has continued to creep up at the mall," Eric Beder, analyst at Brean Murray, Carret wrote in a note on Thursday. "We believe this has offered aggressive players the ability to acquire premium space in strong malls at fair pricing, which should result in stronger returns longer term."