Gerry Weber has laid out a realignment programme, aimed at creating the foundation for profitable long-term growth in the next 18-24 months.
The programme comprises of four elements:
•Optimise the Retail operations
•Adjust structures and processes
•Strengthen the Wholesale operations
•Modernise the brands
The measures presented will work on three levers, the company said, namely sales revenues, efficiency and costs as well as gross profit.
In a trading update on Friday, the business said that sales across core brands (Gerry Weber, Taifun and Samoon) were not good enough, having slid 5.4% to £635.8m this year.
“Gerry Weber is facing the most challenging situation in the history of the company,” said CEO Ralf Weber. “My fellow board members and I are determined to take all necessary measures to overcome this phase as quickly as possible and lay the basis for long-term profitable growth.
The realignment programme will take 18 to 24 months and will entail major challenges, primarily for our employees. In this situation, cuts will need to be made to secure the Gerry Weber Group’s position as a strong fashion and lifestyle company in the long term.”