<\/p>\n
\n\tIt\u2019s a tricky business turning around a big fashion company.<\/p>\n
\n\tThere\u2019s the big strategic question of what the retailer or brand needs to evolve into \u2014 and then there\u2019s a million follow-ons, from who will lead which initiative to how the plan will be communicated to employees, partners and investors.<\/p>\n
\n\tMost often, it\u2019s a long process. Two years count as a lightning-fast turn and, in that regard, Victoria\u2019s Secret & Co. chief executive officer Hillary Super seems to be the exception.<\/p>\n
\n\tUsually, CEOs have to spend a long time selling the company\u2019s future, while mining the present for signs that that future is brighter than ever.<\/p>\n
\n\tAt Day 2 of Goldman Sachs\u2019 annual retail conference on Tuesday, Macy\u2019s Inc. CEO Tony Spring and Capri Holdings chief John Idol were out and about, talking about promising trends, green shoots and how their master plans are coming together.<\/p>\n
\n\tHere, the progress update on two of fashion\u2019s headlining turnaround projects.<\/p>\n
\t\tManaging Macy\u2019s\t<\/p>\n
\n\tTwo-and-a-half years ago, Macy\u2019s laid out its Bold New Chapter.<\/p>\n
\n\tThe plan had the department store mainstay narrowing its focus, reimagining its best locations and hitting the accelerator at Bloomingdale\u2019s.<\/p>\n
\n\t\u201cThe Bold New Chapter is working,\u201d Spring told investors at the Goldman conference. \u201cWe closed underproductive stores. We started our reimagined program. We started with 50 [doors] to make sure that we could get it right and learn, added another 75 [as well as another 75] \u2014 the result two-and-a-half years later, nine of 10 quarters, those reimagined stores have grown.\u201d<\/p>\n
\n\tSpring described the store program as a recipe where all the ingredients are added at the same time, increasing complexity.<\/p>\n
\n\t\u201cWe needed better merchandising,\u201d he said. \u201cWe needed a better merchandise presentation, storytelling. We needed to improve the fitting room experience. We needed more colleagues in our store. We added people to handbags, people to shoes, people to work in the fitting room. We needed to make sure that our density on the floor was reflective of how we wanted the customer to shop within the stores.\u201d<\/p>\n
\n\t\u201cPromises made, promises kept\u201d is a favorite theme for CEOs in the midst of a turnaround, and Spring underscored how the plan is hitting its objectives.<\/p>\n
\n\t\u201cThe Bold New Chapter was intended to improve the quality of the customer experience,\u201d he said. \u201cThe customer experience is far better today. The strategy was intended to accelerate the growth of our luxury brands. The luxury brands are growing and have unique positions in the marketplace. And the intent of the strategy was to improve our end-to-end operations. We\u2019re delivering packages faster, less expensively.\u201d<\/p>\n
\t\t\t\t\tMichael Kors\u2019 Regent Street flagship.<\/p>\n
\t\t\t\t\t\t\t\t\tCourtesy of Michael Kors.<\/p>\n
\t\tRecreating Capri\t<\/p>\n
\n\tCapri Holdings \u2014 which lost some time amid the failed takeover by Tapestry Inc. \u2014 is somewhat newer to the turnaround game than Macy\u2019s.<\/p>\n
\n\tBut it\u2019s on the move now. Versace has been sold and Michael Kors and Jimmy Choo are getting some TLC.<\/p>\n
\n\tIdol had a philosophical take at the conference.<\/p>\n
\n\t\u201cYou can look across the landscape of luxury brands and they go through moments,\u201d he said. \u201cTheir product gets off trend. And you lose the attention or the zeitgeist of the consumer. I would say very much Michael Kors was in that position some 18 plus months ago.\u201d<\/p>\n
\n\tThe changes are starting to show \u2014 but the road ahead will still be rough.<\/p>\n
\n\t\u201cBetween the marketing, between the product and between the experience inside the stores, we can absolutely see the tangible results are there and happening for the business,\u201d Idol said. \u201cI\u2019m going to call it the early innings of our complete brand repositioning. We are laying the foundation for what is going to be future growth.\u201d<\/p>\n
\n\tThat includes cutting back on price promotions, which boost sales, but hurt margins and consumer perception.<\/p>\n
\n\t\u201cThis will be probably the most painful quarter for us in our full-price business,\u201d said Idol, who detailed inventory delays during the fiscal first quarter for analysts last month. \u201cWe ended our inventories down in Michael Kors almost 27 percent during last quarter. And we have 50 percent less clearance and markdown inventory this year than we did last year.<\/p>\n
\n\t\u201cThat\u2019s a big step for us to be able to say to the consumer, we\u2019re full-price and you\u2019re not going to see as much of that other type of product from us,\u201d he said.<\/p>\n
\n\tA big and difficult step.<\/p>\n
#Macys #Capri #CEOs #Talk #Turnaround #Goldman #Sachs #Conference<\/p>\n","protected":false},"excerpt":{"rendered":"
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