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PUMPKIN PATCH
Stephen Bowden
University of Waikato
Case Objectives and Use
This case traces the development of the specialist childrenswear retailer from New Zealand,
Pumpkin Patch. Originally a mail-order company, Pumpkin Patch had grown into a
multinational, multi-channel player in the childrenswear industry. However, while successful,
Pumpkin Patch was very small in global terms. Opportunities for growth were seemingly
everywhere, but the size of Pumpkin Patch placed very real constraints on the capacity to pursue
those opportunities. The company had traditionally placed a high value on flexibility to allow
themselves to be responsive to fashion and to new market opportunities. Retaining that
flexibility seemed important to the management of Pumpkin Patch, but the costs were becoming
higher. The case was written for business school undergraduate, MBA and executive courses in
business strategy and international business.
Case Synopsis
Begun in 1991, Pumpkin Patch had become the largest specialty childrenswear retailer in New
Zealand and Australia. The results for the 2005 financial year showed revenue up 27% to
NZ$280m and net profit up 64% to NZ$25m. In September 2005 Pumpkin Patch operated 137
stores in New Zealand (45), Australia (75), the UK (16) and the US (1). Pumpkin Patch also
sold garments through mail order and online – as well as having extensive international
wholesaling agreements. Reflecting their strong performance, the stock price of Pumpkin Patch
on the New Zealand exchange had nearly tripled since an Initial Public Offering in 2004.
However, Pumpkin Patch was still a tiny player in the US$800B global apparel industry. Only in
July 2005 had Pumpkin Patch opened its first US store. The US children’s clothing market
represented a US$30B opportunity – but was also home to enormous competitors with very deep
pockets. Prioritising and carefully managing the many global opportunities for growth were key
issues moving forward for Managing Director Maurice Prendergast and his board.
The author developed the case for class discussion rather than to illustrate either effective or ineffective handling of
the situation. The case, instructor’s manual, and synopsis were anonymously peer reviewed and accepted by the
North American Case Research Association (NACRA) for its annual meeting, October 19-21, 2006, San Diego, CA.
All rights are reserved to the author and NACRA. © 2006 by Stephen Bowden. Contact person: Stephen Bowden,
Department of Strategy & Human Resource Management, Waikato Management School, University of Waikato,
Hamilton, New Zealand, +64 7 838 4472 , [email protected].