Clarks stayed loss-making in 2024 year of transition, but made big changes to drive growth
APAC saw increasing consumer demand across DTC channels with the performance trending up in Q2 from full-price stores in particular and the stores traded positively across all markets. This was driven by strong average selling prices and increased football during key holidays. To capitalise on increased demand for Clarks Originals in the region, new doors were opened in China and Hong Kong after the success of the premium Clarks Original concept that first opened in Japan in 2023.
The company also developed product specifically for China with the first product successfully launched last year.
Changes at the company itself included CEO John Ram leaving in April 2024 and an interim executive committee formed reporting to the board. It also reorganised its global leadership team to simplify its structure and centralise costs. And it focused heavily on cost savings.
Those savings included reduced headcount across all functions, relocating finance, costings and IT support teams to the lower-cost location of Malaysia. It consolidated warehouse operations in Europe by closing its EU distribution centre and servicing the market from its own warehouse in Street, Somerset. And it closed its Singapore office and moved the Southeast Asia team to Malaysia.
The product assortment was repositioned too and it looked at pricing in order to become 'a better-value proposition' in each market as well as rolling out an essentials range in the UK 'to serve price-conscious customers'. That also came with a change in marketing approach to drive traffic to stores and online, as well as reinforcing key brand values of comfort and fit.
To kick-start future growth the company is focusing on profitable market share growth in its mature markets of the UK, the US and EU but will build scale with 'aggressive' growth rates in its less established markets. It will invest in key growth opportunities and is building and sourcing 'appropriate' assortments per market with, as mentioned, suitable pricing for the consumer.
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