Interviews
News Flash
Charming Shoppes will shut 240 stores
26 Mar '11
5 min read
Looking Ahead
Romano stated, "Following our improvements in sales and operating performance in the fourth quarter, now is the appropriate time to challenge our business model and further position ourselves for a return to profitability.
"Four areas that I plan to emphasize are:
• Intensify our focus on our primary target customers specific to each of our brands
• Improve our overall profitability by brand and at the enterprise level
• Increase inventory productivity both qualitatively and quantitatively
• Build a 'winning' culture"
Intensify our focus on our primary target customers
The Company, as a plus-sized specialty retailer, believed size was its differentiating characteristic, focusing on fit and in-stock inventory position and without appropriate emphasis on fashion, outfitting and the emotional connection with its customers.
Romano said, "Our customer has many facets to her, just like every other customer segment in retail. We are re-committing ourselves to listening more intently to her, including through focus groups, online surveys and analyses of demo-graphic and psycho-graphic data to appropriately segment and target our customers. She wants and deserves to look and feel her best."
Improve overall profitability by Brand and at the Enterprise level
Romano continued, "We are taking a number of steps to leverage our flagship brand, Lane Bryant, including aligning the full-price and outlet divisions and maximizing our Cacique intimate apparel opportunity throughout our entire brand portfolio. Brian Woolf has been appointed Group President - Lane Bryant, with responsibility for the Lane Bryant, Lane Bryant Outlet and Cacique intimate apparel brands.
These initiatives will strengthen and support our 'One Brand - One Vision' strategy for the Lane Bryant brand, including consistency of product, design, sourcing, marketing and pricing strategies. Our new structure will ensure that we do not disappoint her while we simultaneously benefit from operating efficiencies through the alignment of the two retail store concepts."
At Fashion Bug, the customer clearly wanted a return to separate Missy and Plus store presentations. Accordingly, the selling floor has been reset so that the Plus customer has a separate and unique approach to her shopping experience, including all of the options presented to Fashion Bug's Missy customers and more. Easier to shop, the new visual and merchandising presentation now includes more compelling outfitting looks, as well as the opportunity to showcase key fashion trends.
The Company will continue to rationalize its store base and accordingly, will be closing approximately 240 unprofitable stores in 2011. More than half of these stores are at Fashion Bug. Catherines Plus Sizes will be closing all their 30 stores operating in outlet locations over a two-year period. These stores in outlet centers have not met the Company's profitability objectives and as a group, are generating negative EBITDA.
Click here for more details
Romano stated, "Following our improvements in sales and operating performance in the fourth quarter, now is the appropriate time to challenge our business model and further position ourselves for a return to profitability.
"Four areas that I plan to emphasize are:
• Intensify our focus on our primary target customers specific to each of our brands
• Improve our overall profitability by brand and at the enterprise level
• Increase inventory productivity both qualitatively and quantitatively
• Build a 'winning' culture"
Intensify our focus on our primary target customers
The Company, as a plus-sized specialty retailer, believed size was its differentiating characteristic, focusing on fit and in-stock inventory position and without appropriate emphasis on fashion, outfitting and the emotional connection with its customers.
Romano said, "Our customer has many facets to her, just like every other customer segment in retail. We are re-committing ourselves to listening more intently to her, including through focus groups, online surveys and analyses of demo-graphic and psycho-graphic data to appropriately segment and target our customers. She wants and deserves to look and feel her best."
Improve overall profitability by Brand and at the Enterprise level
Romano continued, "We are taking a number of steps to leverage our flagship brand, Lane Bryant, including aligning the full-price and outlet divisions and maximizing our Cacique intimate apparel opportunity throughout our entire brand portfolio. Brian Woolf has been appointed Group President - Lane Bryant, with responsibility for the Lane Bryant, Lane Bryant Outlet and Cacique intimate apparel brands.
These initiatives will strengthen and support our 'One Brand - One Vision' strategy for the Lane Bryant brand, including consistency of product, design, sourcing, marketing and pricing strategies. Our new structure will ensure that we do not disappoint her while we simultaneously benefit from operating efficiencies through the alignment of the two retail store concepts."
At Fashion Bug, the customer clearly wanted a return to separate Missy and Plus store presentations. Accordingly, the selling floor has been reset so that the Plus customer has a separate and unique approach to her shopping experience, including all of the options presented to Fashion Bug's Missy customers and more. Easier to shop, the new visual and merchandising presentation now includes more compelling outfitting looks, as well as the opportunity to showcase key fashion trends.
The Company will continue to rationalize its store base and accordingly, will be closing approximately 240 unprofitable stores in 2011. More than half of these stores are at Fashion Bug. Catherines Plus Sizes will be closing all their 30 stores operating in outlet locations over a two-year period. These stores in outlet centers have not met the Company's profitability objectives and as a group, are generating negative EBITDA.
Click here for more details
Charming Shoppes Inc
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