Gordmans: Six key takeaways
May 29, 2014-- Home Textiles Today,
Omaha, Neb. – Fully staffed with divisional merchandise managers for the first time in over a year, Gordmans has established new priorities for buyers.
- Merchandising: Buyers are now focused on door-busters to drive traffic. Inventories are going to be whacked 10% across the board on an average store basis. In terms of design, casual looks are leading in home.
- Q1 best performers in home: Gifts, kitchen dec pillows, pets, soft storage and toys.
- Operations: Gordmans’ second distribution center is slated to open during the current quarter. Location: Indianapolis. It will allow the retailer to double current store count (94 units).
- Ecommerce: Launch planned for 2015.
- Marketing: Upping promotional email frequency, expanding the audience, and focusing on key items and the value proposition. Modifying TV strategy and reintroducing print inserts, which previously ran only during the holidays.
- Executive search update: New ceo will probably be hire within next 90 days. New chief merchant in next 60-90 days.
For the quarter ended May 3, Gormans flipped to a net loss of $732 million, or 4 cents per share, compared to net earnings of $3.2 million, or 17 cents per share, in the year ago quarter.
Sales climbed 8.8% to $143.0 million – the boost coming primarily from 10 new stores. Comps fell 2.7%. Worth noting: registered loyalty program members generated 60% of transactions.
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