Clarks wants to change direction. Actually, it must. And in order to so, it has requested for the help of McKinsey & Co. The consulting firm has been called to run a revision of the entire company. Moreover: it will evaluate all scenarios in case the situation of the British brand was to worsen.
Clarks chooses McKinsey
Clarks’ decision to hire the consulting firm, reads the Sunday Times, is also to get an external assist to reduce the rent expenses of its stores. The company has about 553 stores and 12,000 employees between the United Kingdom and Ireland. The losses of the last fiscal year amounted to 82.9 million UK pounds, and expectations for the upcoming results aren’t comforting. Clarks confirmed its choice of McKinsey & Co., but has refused to share any details regarding the upcoming plan, nor it has confirmed it will cut stores in the future.
20 stores closing
British press awaits for the announcement explaining how many stores of the famous brand will shut-down throughout the next few years. Clarks has confirmed its need to “significantly” reduce the number of stores in the upcoming years, but it failed to share details regarding the number and locations of this operation. Stella David, ad-interim CEO through the last fiscal year stated that “the retail stores in the United States and United Kingdom have become a real obstacle to Clarks’ positive performances.
The company’s CFO, Paul Kenyon is about to leave the company. In his place, the organization has chosen Philip de Klerk as the ad-interim substitution, who has left his position as CEO of Low & Bonar (materials’ manufacturer). Clarks’ top management has announced Giorgio Presca as the new CEO in February, while in March, the brand confirmed to be preparing the closing down of the Somerset plant, along with 9 stores.
Images from clarks.com