Dive Brief:
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Lands’ End has named retail veteran Jerome Griffith chief executive officer. He will join the struggling apparel retailer Mar. 6, according to a press release emailed to Retail Dive on Monday.
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Griffith most recently was CEO and president of luggage retailer Tumi Holdings, serving from April 2009 until its sale in August this year to Samsonite International (where he serves as a non-executive director). From 2002 to 2009, he held executive positions at global fashion brand Esprit Holdings Limited, and also tenured at Tommy Hilfiger, J. Peterman Company and Gap, Inc.
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Griffith succeeds Joseph Boitano and James Gooch, who have served as Lands' End's interim co-CEOs since the September departure of Federica Marchionni.
Dive Insight:
Lands’ End failed to revive its fortunes during Marchionni’s tenure, which lasted less than two years. A veteran of luxury fashion house Dolce & Gabbana, Marchionni was brought in to add style and sophistication to the retailer's brand, as well as boost e-commerce sales and capture a younger, more fashionable demographic. Under her watch, the company introduced slimmer-fitting designs, a new line of athletic wear and a series of pop-up shops in trendsetting locales like New York’s Fifth Avenue and SoHo neighborhood. Marchionni also brought on a new team of executives with experience at brands like Saks, J. Crew, and Bonobos to help with design and supply chain.
It didn’t work. Lands' End recently reported third quarter net revenue of $311.5 million, down from $334.4 million in the year-ago period as sales continued to fall both in stores and online. Retail segment net revenue decreased 15.6% year over year to $39.3 million, primarily due to a 14.3% decrease in same-store sales and fewer Lands' End Shops at Sears, while direct segment (catalog and e-commerce sales) net revenue decreased 5.5% year over year to $272.1 million.
The task of resuscitating the business now falls to Griffith, who has experience revamping brands while keeping loyal customers happy, according to Josephine Linden, Lands’ End's chairman of the board.
“Jerome is an exceptionally gifted leader with an impressive track record of spearheading growth and expansion at several iconic apparel and consumer goods companies,” Linden said in a statement sent to Retail Dive. “Over the course of his career, Jerome has demonstrated a special talent for innovation in design and functionality to attract new customers while upholding the quality, value, service, and products that current customers love. As Lands’ End continues its evolution at the forefront of the retail industry, we believe Jerome’s experience and tactical execution will improve financial performance and build sustainable long-term value for stockholders.”
Indeed, the challenge for Griffith (as it was for Marchionni) will be to heighten the retailer's appeal to new consumers without losing its core demographic, many of whom have maintained their affection for the brand's outdoorsy, classic apparel.
In April, Lands' End reintroduced its Canvas brand as a collection of on-trend apparel aimed at younger, more fashionable shoppers. Originally introduced in 2009, the brand initially seemed promising but was soon discontinued after the retailer was hobbled by the difficulties of then-parent company Sears. Marchionni called Canvas the "perfect choice" for the company to appeal to a younger market, and the relaunch was paired with new marketing efforts in fashion magazine Vogue as well as a redesign of its iconic catalog. But during the third quarter, Lands' End wrote down $4.4 million of prior-season Canvas inventory.
Lands' End's move to sell on Amazon has also been problematic, despite Marchionni’s insistence that the effort would only include a limited number of items from Canvas and its sports and footwear collections. Marchionni — who received assurances that the e-commerce goliath will adhere to Lands’ End’s pricing stipulations — told analysts that selling merchandise on Amazon presents “an additional channel for us to introduce consumers to our new brand and expanded category.”
But some analysts have predicted that the partnership could backfire if (or, more likely, when) Amazon makes changes that are favorable for itself, but are unfavorable for the retailer — including Amazon knocking off bestselling items to sell through its own apparel effort.