cLIENT:
S P E C I A L T Y R E T A I L E R
Case Study No. 1
This client is a publicly traded company that grew from $250 million to approximately $3 billion over more than a decade we worked with them. The business was unique among its peer group, experiencing 14 years of unprecedented success driving both top line and bottom line growth; outpacing its competitors in revenue growth, margin, $$ per sq. foot and bottom line performance.
THE ASSIGNMENT:
IDENTIFY & RECRUIT NEW TALENT TO THE TEAM
[ for a publicly traded teen fashion retailer ]
5 Board of Directors
SVP Stores
Chief Merchant
SVP, Planning
SVP, Merchant
SVP, Sourcing & Production
SVP, Design / Product Dev.
SVP, Marketing
SVP, HR
CONTEXT & CHALLENGES:
The Company is a fashion apparel retailer in the teen sector. Their business model is more that of a “fast fashion follower” than a leader. The pricing strategy is moderate and they employ a highly promotional strategy for driving traffic. Given the business model, success of the business was predicated on the success of the broader team, and not one individual silo or star contributor as we often see in the retail industry. Specifically, in this business it was imperative that:
- Merchant talent was trend right with a keen understanding of the customer and knowledge of their competitors
- Design/production team needed to translate fashion “at a price” for the customer, without compromising margin.
- If the product was over-designed, it would be too expensive for the customer;
- If the product was under-designed, or lacking in quality, it would not meet the quality expectation of the customer.
- Finance needed to be very astute in determining when to cut prices and how deep to avoid devaluing the brand, eroding margin, or handicapping traffic and eroding revenue.
- Store teams needed to be incredibly smart to maximize their floor plan; in a small box, every square inch of space counted.
RESULTS:
- During over a dozen years of unprecedented success, the team drove top and bottom line growth; surpassing its peer group in revenue, margin, $ per sq. foot and bottom line performance.
- Of all of these placements, which span a total of 14 years, only 2 people ever “left” the Company prior to 2015. In 2015, after 3 years of a very turbulent retail environment and very difficult business trend, the Company lost some team members in a combination of departure and downsizing. Subsequently, amidst significant turmoil in its sector, the Company recently filed for bankruptcy after 3 years of downward sales. The success of the business was a great testament to the capabilities of the team. Their loyalty and tenacity in tough times is, perhaps, a greater testament to the quality of the team and the leadership of the Company.
