Account Review Prediction: Chico’s FAS
Steve’s breakdown: They are getting rid of the CMO and moving marketing & advertising duties to the brand presidents of Chico’s, White House | Black Market and Soma.
Zimmerman won the business last May but these changes look too severe for them to hang on.
FORT MYERS, FL: Chico’s FAS is getting rid of its chief marketing officer.
The apparel retailer on Monday announced a realignment of its marketing and digital commerce functions that the company expects will reduce its 2016 marketing expenses by $11 million and generate annualized cost savings of approximately $14 million.
The retailer is moving away from its centralized strategy and, instead, placing the “decision makers” directly into its three brands: Chico’s, White House | Black Market and Soma. In connection with the change, Miki Berardelli, president – digital commerce and chief marketing officer, will be leaving the company. Her primary responsibilities will be assumed by the company’s brand presidents.
The technology and analytics infrastructure and associated back office support will continue to service the brands at the corporate level to leverage scale. The realignment will further optimize marketing programs and decrease related expenses.
“Disbanding these previously centralized functions will result in a leaner, more simplified structure that better supports the individual brand needs and places the functions closer to the customers, while at the same time, reducing costs and complexity within the company,” said Shelley Broader, president and CEO, Chico’s FAS. “By directly aligning these resources within the brands, we will enable better execution on our customer experience initiative, one of our four areas of focus that we outlined in February to drive results, enhance profitability and increase shareholder value.”