Home / Knowledge / News / Fashion / Tom Tailor launches cost reduction and efficiency drive
Tom Tailor launches cost reduction and efficiency drive
16
Nov '15
Hamburg-based Tom Tailor Group has initiated its comprehensive, multi-year cost reduction and efficiency programme “Core” to focus on its core competencies, it said in a press release. With this initiative, the company is addressing the far-reaching and rapid structural transformation of the textile industry. The goal is to increase efficiency and accelerate processes while improving the cost base in order to enhance the company's long-term competitiveness.

"The effects of globalization and digitalization have brought far-reaching changes to the textile market, and customer needs are rapidly shifting. Dynamism, efficiency and flexibility will be even more crucial to competitiveness in the future. With our envisaged program we will speed up our processes and streamline our structures. This will further boost the performance potential of our retail and partner spaces," said Dieter Holzer, the CEO of Tom Tailor Holding AG.

The “Core” programme is intended to generate additional contributions to earnings. The company expects to realize the full financial impact of the cost reduction measures, amounting to at least 10 million euro per year, from 2018 onward.

Within the framework of the cost reduction and efficiency program, the Group plans to pare back its brand portfolio, and in the future focus on the strong core brands Tom Tailor, Tom Tailor Denim and Bonita. Consequently, the Tom Tailor Polo Team brand and the Tom Tailor Contemporary Men line are scheduled to be withdrawn from the market in the summer of 2016.

The Tom Tailor group also intends to streamline its sales organization in terms of countries and sales channels. The company plans to further optimize its retail network by closing less profitable stores. Against this backdrop, it will also adjust its rate of expansion. In 2016, up to 30 new stores are scheduled to be opened, as compared with 115 openings in 2015.

Another proposed measure of the “Core” programme is a review and assessment of all operating costs. As a first step, all material costs will be reviewed and options evaluated to reduce the rental and logistics costs.

In the course of the focusing initiatives, the company's workforce capacity will be reduced, realizing cost savings of EUR four to five million. Following initial soundings and information, there will be discussions with the works council over the next weeks so as to arrive at solutions compatible with social priorities.

"By lowering our break-even-threshold and through the resulting improvement of our earnings potential, we are responding to the increasing volatility in the market. As a result, we are positioning the Tom Tailor Group for sustainable and profitable growth and thus make our company weatherproof," said Holzer. (SH)

Fibre2Fashion News Desk - India


Must ReadView All

Union Minister for finance Arun Jaitley chairing the 25th GST Council meeting, flanked by minister of state for finance Shiv Pratap Shukla (right) and finance secretary Dr Hasmukh Adhia. Courtesy: PIB

Textiles | On 20th Jan 2018

GST rate on velvet fabric reduced to 5%

The 25th Goods and Services Tax (GST) Council meeting, held under the ...

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

Textiles | On 20th Jan 2018

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

The revenue from the petrochemicals segment at Reliance Industries...

Courtesy: Cotton USA

Textiles | On 20th Jan 2018

US cotton bodies pledge to support CCI activities

Ten US cotton organisations have pledged industry contributions in...

Interviews View All

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Representatives
Textile & apparel industry

GST is a complicated and lengthy process

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Urmil Arya

Sushila International, a well established textile organisation established ...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

January 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search