Marcs and Morrissey set for overhaul
After purchasing the two brands from Oroton Group late last month, retail giant M. Webster Holdings (MWH) spoke exclusively to Ragtrader about its far-reaching, three-year business strategies for both. The company - which also owns and operates David Lawrence and Jigsaw - will execute its new initiatives throughout the Australian and New Zealand markets as part its $6.3 million purchase.
MWH financial director Eitan Madar said it is aiming to achieve "peak" trading performances for both retailers by 2009.
"The strong performance of David Lawrence and Jigsaw over the past 12 months indicate that there is still a strong market for fashion and there is an opportunity to revitalise the two brands and bring them back to their former glory through reviewing operational expenditure and supply chain management."
As part of its agreement with OrotonGroup - which officially kicks in on December 5 - Madar said MWH would restructure Marcs and Morrissey's flailing retail operations and launch an intensive consumer marketing campaign in 2007. Although Madar would not comment on the cost of the restructure nor the campaign, he did confirm the company would equip all Marcs and Morrissey stores with state-of-the-art technology systems by the end of next year. It is understood the initiatives are aimed at repositioning the brands' public image and enabling it to trade more effectively in the future.
"This level of retail technology and experience is more than capable of providing the necessary support to re-position the brands to greater retail performance," Madar said.
Confident the new initiatives would deliver a strong gross profit result for the retailers next year, Madar also said MWH would commit to expanding both retail operations in 2008. Labelling it as "stage two" of the company's three-year plan, Madar said he did not believe it would conflict with MWH's current stronghold of retail operations.
"All four brands are pitched at different levels of the high fashion scale and through this synergy, greater opportunities in terms of supply chain will benefit all brands."
Although not all employees from Marcs and Morrissey will be retained in the ownership shakeup, it is understood that MWH has offered to take on board most existing staff including the design and creative departments.