Clothing Retailer Hot Mama Expanding Rapidly

Edina-based clothing retailer Hot Mama, which caters to fashion-forward moms, has grown to 30 stores in 11 states since its inception in 2004 and is on track to grow to 100 stores and generate $100 million in revenue by 2016.

In 2004, Megan Tamte and her husband, Michael, opened the first Hot Mama clothing store in Edina, catering to the fashion-forward mom.

Hot Mama has since grown to a chain of 30 stores in 11 states. The company has averaged a 60 percent increase in revenue year over year and is on track to hit $33 million for the 2012 fiscal year ending October 31. Revenue from its last fiscal year totaled $22 million.

Megan Tamte conceived the idea after the birth of her first child, when she realized that there wasn’t a store that catered to the young mom with little kids.

Hot Mama stores offer casual-chic attire suitable for both work and the playground. The stores are designed to be mom-friendly; features include wide aisles for pushing a stroller around and a central living room—furnished with a couch, a TV, and toys—where kids can entertain themselves while mom tries on clothes.

Hot Mama is on track to grow to 100 stores and generate $100 million in revenue by 2016, says Michael Tamte, who serves as the company’s chairman and chief financial officer.

Twin Cities Business looked at what makes Hot Mama tick in its June feature story, “Hot Mama, Hot Concept.”

CEO Megan Tamte says one key to Hot Mama’s success is the universality of the concept, as the lifestyle of a mom is the same everywhere.

“We fundamentally found that a lot of moms need help and want to shop, but they want to shop at a place where they can shop quickly and dare to try a trend,” she says.

Hot Mama trains its sales staff to be stylists who can talk with customers about their favored style and body type and help find items that suit their needs and tastes. The stores also strive to cater to a broad variety of customer tastes by carrying products from about 150 designers.

While most Hot Mama stores are in the Midwest, the company plans to open a location in a major East Coast city next year, and by 2014, will pursue markets in the South.

To learn more about Hot Mama’s growth strategy and what industry analysts think of its business model, read Twin Cities Business’ June feature story here.