Chico’s FAS, Inc. just unveiled news that under its new chief executive officer, Shelley Broader, the company has been implementing new initiatives setting up for success. Due to a letter from the company to its shareholders that surfaced, the company has moved forward and shown progress in these plans.
The letter shows that Broader has been able to implement a new strategy that will drive the company’s growth and profits. Under her leadership, the company has launched a comprehensive review of its operations. Additionally, Broader highlighted operating improvement opportunities and focus areas for Chico’s. These focus areas include more consistent growth, accelerating margins, and fortifying relationship with both new and existing customers. The company also has realigned their marketing and digital commerce functions. A direct result of this action shows approximately 14 million dollars of expected annualized cost savings. These are all actions from Broader’s focus on financial, operating, and strategic plans.
Chico’s FAS Inc. moves forward with new initiatives
Also, the company recently announced three additional initiatives in May and making changes to the Board of Directors. These initiatives include improving Chico’s supply chain, non-merchandise procurement and marketing. Ultimately, the goal of these initiatives is to save the company money. The estimated amount of annual cost savings from these three areas is estimated at 50-70 million dollars. Aside from the initiatives, the company also stated that board member changes are essential to the brand’s growth. Chico’s hired Bonnie Brooks and William “Bill” Simon to their Board of Directors because of their relevant skill sets for the job. Allowing for these changes proves Chico’s is moving forward with its new business plan.
Chico’s FAS, Inc. owns brands Chico’s, White House Black Market, and Soma. As an omni-channel specialty retailer of women’s sophisticated clothing, these brands offer casual-to-dressy clothing, accessories, and intimates. Expanding and growing the company only means more growth and exposure for these three house brands as well. Currently, the company’s retail standing is at approximately 1,517 operating stores in the U.S. and Canada. Some of the company’s retailers are also available through franchises in Mexico. Each retailer has their own e-commerce site that also sells their individual clothing. Although the company is still in motion with its new strategy, only time will tell if its efforts are successful.
Photo Source: Chico’s FAS, Inc.