On the heels of long-time creative director Jenna Lyons’ resignation, branding legend Millard Drexler will step down as CEO.
J. Crew is one in a series of well-known American retailers that have struggled to adapt to changing consumer habits. Same-store sales have fallen in 11 of the past 12 quarters. Revenue fell by 2% during the three-month period ending on January 28, and the following month, the company announced plans to eliminate 150 positions. Many retailers have been on a downward slide. Payless ShoeSource, The Limited, BCBG Max Azria and Wet Seal have all filed for bankruptcy this year, and analysts expect many more to follow.
Millard Drexler will be succeeded by James Brett, President of home furnishings brand West Elm, in July. Drexler will remain Chairman and retain his ownership stake in the company. J. Crew spokeswoman Margot Fooshee said that Drexler began succession planning over a year ago. The executive recruitment process had reportedly been underway for some time.
“As chairman and an owner of the company, it is my responsibility to focus on the future of J. Crew and find the right leadership to execute on our strategic plans”, Drexler said in a statement. “Jim has a proven track record of pushing for innovation.”
Known as the “Merchant Prince”, Drexler has had a storied retail career. He was formerly CEO of Gap, but was sacked in 2002 following 24 consecutive months of declines in same-store sales. During his nearly 20-year tenure, sales grew from $400 million to $14 billion. Drexler joined J. Crew in 2003. Under his leadership, the New York Times reports, “robust sales set up J. Crew for a successful public offering in 2006 and a huge 700 percent return for the private-equity owners TPG.” J. Crew was taken private again in 2011.
Drexler’s successor, Brett, previously worked for brands such as Urban Outfitters, Anthropologie and J. C. Penney. The executive hiring suggests that J. Crew is abandoning the dalliance with high fashion championed by Drexler and Lyons, and will likely refocus on its more accessible styles as well as online sales.
Since Brett was appointed President of West Elm, which is part of Williams-Sonoma, it has reported strong growth. His successes include establishing the West Elm brand as a favourite amongst millennials, and was also spearheading its push into boutique hotels. “Jim has a reputation as a terrific merchant”, remarked Joshua Schulman, Chief Executive of Coach.
