Plummer & Associates recruited the EVP-CAO/CFO to Charming Charlie, the high-growth retailer of women’s accessories based in Houston, Texas.
Mr. Thomas Fitzgerald joined and reports to Mr. Charlie Chanaratsopon , the Founder and Chief Executive Officer. Previously, Tom was the Chief Administrative Officer for Sears Canada based in Toronto. Earlier in his career he had been Chief Executive Officer for Lucky Brand Jeans, and Chief Operating Officer for Bath & Body Works.
The pundits are having a good time poking fun at Ron Johnson’s expense. Yes, he made big mistakes. However, he was not the real problem.
Penney’s has been declining for years. The real blame belongs to the Board and the prior management. Over the years, J C Penney focused on the same customer and followed those customers as they grew older; management failed to attract younger customer. Everyone in retail knows the younger customers are the profitable customers. Only during the brief tenure of Allen Questrom and Vanessa Castagna did J C Penney do the right things.
I always believed the probability of success in Ron’s strategy to take JCP upscale and simultaneously attract a younger customer was unlikely. As retailers switch from one customer base to another, the retailer usually first finds the bottom of the Grand Canyon. That is where JCP is today. The old customers do not like what they see and the new customers do not like shopping with the old customers. In my mind, investors cannot afford to take the time required to successfully support a retail turnaround.
I have seen several retailers attempt to make customer base changes. Some that come to mind are:
All were colossal failures. On the other hand, Target did successfully make a change but it was done gradually and over several years. The customer base change was also less significant.
The essence of this story is that the Board and management need to keep their eyes focused on the long-term health of the company versus short-term quarterly tactics. The truth is that a merchant prince can seldom pull off a successful major change in customer base.
ARNOLD CONSTABLE - FIFTH AVENUE - NEW YORK CITY
For years, the Arnold Constable & Company was known as the “oldest department store” in America. It served the ‘carriage trade’ of New York. Famous customers included the Astor’s, Vanderbilt’s, Roosevelt’s, and Mary Todd Lincoln. The company was known for bring the best French fashion to NYC.
The company was started in 1825 by Mr. Aaron Arnold, an immigrant from the Isle of Wright. Before he opened his store he had been working with James Hearn, founder of Hearn’s. Mr. Arnold’s first store was located at the corner of Canal and Mercer Streets, then the center for retail. In 1837, a vendor, James Constable, married Aaron’s daughter and then became a partner in the firm. That is when the name was changed to Arnold Constable.
In 1868 Arnold Constable opened a new store at Broadway and Nineteenth Streets in NYC. This put the store in the middle the new “Ladies’ Mile” shopping district. It was known as “the Palace of Trade”.
In 1914 the company incorporated with reported capital of $2.5m. That same year the company leased the former home of Frederick W. Vanderbilt and started plans for building a new store on Fifth Avenue at 40th Street. At this time it was clear that the shopping district was moving “uptown”.
In 1925, Arnold Constable merged with Stewart & Company which led to the expansion into the suburbs. The first suburban store opened in 1937 in New Rochelle, NY. Later, stores opened in Hempstead, Manhasset, and New Jersey.
In the 1960’s, the carriage trade retailer of New York started to face economic troubles. As sales declined, expenses were rising significantly. The company started closing the unprofitable suburban stores. In 1975, the store on Fifth Avenue closed. After 150 years, the Arnold Constable name disappeared. The company did continue to manage its no-name stores, a small specialty retailer offering men’s and women’s separates. This was later sold in the 1990’s to YM, Inc, a Canadian retail chain.
What happened???? Arnold Constable did not adjust to the newer times and merchandising systems. It continued to cater to a dying “carriage trade” customer and did not attract the younger customers.
I visited Arnold Constable in 1973 on a business trip to NYC. I was interested in comparing it to Bullock’s Wilshire and I. Magnin. To me it was clear that Arnold Constable did not know it was hostile to the younger customer. The store also looked dowdy and was not well merchandised. I was not surprised when the company closed a year later.
Plummer & Associates recruited Mr. Mark Poston as Chief Executive Officer for Resource Real Estate, one of the largest owner/operator of residential apartment complexes in the U.S. Mr. Poston brings extensive hospitality experience to Resource Real Estate from Bennigan’s, Yum Brands, and ARAMARK. He will lead a team responsible for the management of 65 major properties and future growth. He will be based out of the company’s Philadelphia headquarters. Mark Poston is a graduate of the U.S. Naval Academy.
Plummer & Associates recruited Mr. Giovanni Pesce as SVP-International Sales for Viva Optique, a division of HVHC. Mr. Pesce brings extensive international experience in the eyewear industry. He will be based in Italy and his role will be to develop business in Europe, the Middle East, India, and in the Far East. He joined the company in December, 2011.
Plummer & Associates recruited David Moore to become SVP – Merchandising for HVHC based in San Antonio. Mr. Moore brings extensive accessories and eyewear experience from Fossil, Inc.
HVHC, formerly known as Eye Care Centers of America (ECCA), was acquired by Highmark, Inc., a major health care company and the name was changed to Highmark Vision Group (HVHC). This division operates over 540 retail vision centers across the U.S. with the majority carrying the EyeMasters banner. Other brands include: Vision Works, Vision World, Empire Vision, Cambridge Eye Doctors,Value Vision, Eye DRx, Binyons, Total Vision Care, Hour Eyes, DavisVision,and SteinOptical. HVHC is one of the fastest growing optical retailers in the U.S.
Plummer & Associates, based in New Canaan, Connecticut, is a boutique executive recruitment firm which specializes in serving the direct-to-consumer business sectors (retail, retail services, food service, direct selling/marketing, catalog, e-commerce, m-commerce, and apparel). The firm was founded in 1989 and is well-known for the quality of its work and its unparralled track record for recruiting candidates who are successful both in the short- and the longer-term.
CHARMING CHARLIE APPOINTS KEITH CLINE AS CHIEF FINANCIAL OFFICER
HOUSTON –(BUSINESS WIRE)– Charming Charlie announced today that it has appointed Keith Cline as Chief Financial Officer effective February 28, 2011.
Mr. Cline comes to Charming Charlie from Express, Inc. (NYSE: EXPR), where he most recently served as Senior Vice President, Finance. During his five year tenure, Mr. Cline played a key role in both the 2007 privatization of Express and the subsequent initial public offering in 2010. Prior to that, Mr. Cline served as Director, Corporate Finance at Limited Brands, Inc. [NYSE: LTD] from 2003 to 2006. Mr. Cline’s career also includes financial leadership roles with FedEx Custom Critical, The J. M. Smucker Company, and Mettler-Toledo International, Inc. Mr. Cline began his career in public accounting with Arthur Andersen & Company and is a graduate of The University of Akron with a B.S. in Accounting as well as a M.B.A. in Finance.
“We are very pleased to welcome Keith to our team,” said Charlie Chanaratsopon, Chief Executive Officer of Charming Charlie. “Keith’s extensive background in finance combined with his retail experience and leadership capabilities will be invaluable as we continue to aggressively expand our national footprint. He is exceptionally well qualified to serve as our new Chief Financial Officer and I look forward to working closely with him to take this Company to the next level.”
Press Release Source: Viva International Group On Thursday April 28, 2011, 9:00 am
SOMERVILLE, N.J.–(BUSINESS WIRE)– Viva International Group, a worldwide leader in ophthalmic frames and sunglass distribution and manufacturing, has appointed Jan Cory as senior vice president of domestic sales. In her new role, Cory will oversee both the U.S. and Canadian sales forces, and will report to Viva President Frank Rescigna. Reporting to Cory will be Robert Dunn, Viva’s director of east coast sales; Kelly O’Grady, director of west coast sales; William Munch, general manager, Viva Retail Sun Division; and Don Fatula, manager of corporate accounts.
“Critical to our success in sales is excellence in strategic planning and the development of a solid collaboration of partnerships across our organization,” said Rescigna. “Jan has a proven track record in these areas in her more than 30 years of achievement and leadership in premium brand retail consumer products. Her experience will help us to continue to flawlessly execute our goals and ‘super serve’ our customers.”
Cory joins Viva from Luxottica where she recently lead the optical sales team as vice president of independents and sun specialty, including creating new customer-centric strategies, which lead to the 2010 sales force transformation. Previously, she was vice president of department stores and special markets, where she helped to establish her division as the premier resource in the department store channel of trade. Prior to her 12 years at Luxottica, she was vice president of sales for the U.S and Canada for Grosse Jewels, which had the licenses for Christian Dior and Burberry fashion jewelry.
Cory is a graduate of Miami University where she earned a bachelor of arts degree in public administration and political science. She is on the board of the Accessories Council, and a member of the Fashion Group.
Hale Bros. San Francisco - Pre-1906
HALE BROTHERS – SACRAMENTO
In 1880 the Criterion Store was opened by Prentice Cobb Hale and his two brothers. This store was located in downtown Sacramento. The next year the store and company was renamed Hale Brothers & Company. In 1896, the company incorporated under the name of Hale Bros. In 1887, the company established a buying office in New York headed by Marshall Hale. This store was known for offering value priced merchandise.
Hale Bros opened large stores in San Francisco and San Jose and several smaller stores in California’s smaller markets. In those days some of the stores included groceries in their merchandise mix. Each store was managed as a separate entity as systems were not sophisticated enough to have chain wide merchandising. The Sacramento store was last located at 9th and K Streets. The San Jose store was at the corner of 1st and San Carlos. The San Francisco store was first located at 989 Market Street. After the earthquake, the company built a new store at 901 Market Street in a neoclassical building designed by the Reid Brothers. It lost that store in a 1944 lease dispute with the owners of the land upon which the store was built. As a result, J.C.Penney moved into this prime location and Hale Bros was forced to take over the former J.C.Penney location adjacent to the enormous Emporium store. The foolish negotiations by Hale Bros resulted in the company opening in an older building while paying a much higher rent.
In 1949, Hale Bros. acquired their Sacramento rival, Weinstocks Lubin & Co. In 1949, Hale Bros. negotiated an all-stock merger with Los Angeles based Broadway Department Stores, then the largest and most aggressively growing chain in Southern California. The result was Broadway-Hale Stores. Prentice Hale became the Chairman and Ed Carter (Broadway) became President.
All stores were closed by 1968. Hale Brothers was facing increased competition from the Emporium and aggressive specialty retailers. Consumers were moving to the malls while Hale Bros stores were in downtown markets. Since the Emporium was merged into Broadway – Hale in 1969, I have to believe they knew that Hale Bros stores would not be relevant in that combined company. At the time, the only people crying over the loss were the employees of Hale Bros. The store was not missed.
The Sacramento store has now been restored to its original look; the unsightly aluminum sheathing has been removed. The San Jose store now houses a building and loan office. The San Francisco store was empty for years after J.C. Penney left San Francisco. It now houses big box retail venues.
What happened????…. In the case of Hale Bros you cannot blame Carter Hawley Hale for its demise. Instead, blame goes directly to the company’s management. The loss of the San Francisco store lease killed that store. They ended up with a store that was old and in decline and they paid more in rent. They just could not compete with the more customer friendly Emporium next door. Customers were also looking for more fashion but Hale Brothers did not offer it. The biggest problem was that the customers were moving to mall shopping environments and Hale Bros stores were only located in downtown venues.
I was taken to the Hale Bros stores in both Sacramento and San Francisco. In Sacramento, the Weinstock’s store was far more exciting. In San Francisco, going to Hale Bros was torture in comparison to the Emporium, the White House, or the City of Paris. Then, when Macy’s San Francisco woke-up, it was all over for Hale Bros.
I hope that all of you who know Hale Bros better than I do will be able to tell your stories in the comments section below. I would especially like to hear more about how the real estate mogul, Louis Lurie, out foxed Prentice Hale.
Hale Bros. - San Francisco - Destruction by 1906 Earthquake and Fire
Hale Bros. - San Francisco - Rebuild after Earthquake and Fire
Hale Bros. - San Francisco - New Store on Market - 1927
Hale Bros. - San Jose - Scene from 1932
Hale Bros. - San Francisco - First Floor - no date
Hale Bros. - San Francisco - Pompeian Court/Restaurant - 1914
These Hale Bros. postcards are part of the Plummer & Associates collection. Please do not copy or reproduce without permission from John Plummer.
The White House - Kearny Street Looking towards Market - 1905
The White House in San Francisco first opened as Davidson & Lane. It opened in 1854 on Sacramento Street by J.W. Davidson and Richard Lane. Raphael Weill, an 18 year old émigré from France, joined the company. In 1958, when Richard Lane left to make his fortune in the Gold Rush, Raphael Weill became a Partner in the business. By 1861, Raphael Weill had bought out his partner and the store moved to Kearny and Post Streets. In 1870 it was renamed Raphael Weill & Company but the store was known as the “White House” after Grand Maison de Blanc in Paris. In 1906, the great earthquake and fire destroyed the building. Like many other retailers, it relocated temporarily after the fire and until the new store could be built. The new store was built at Sutter and Grant. It was built in a Beaux Arts design by Albert Pissis. The company maintained a buying office in Paris and all key members of management were from France and brought the French style in merchandise to San Francisco. For years, the company thrived and was noted for its elegant tea room. Mr. Weill died in 1920. The company continued to operate until 1965 when it closed in bankruptcy.
The building still stands and is now a flagship store for Banana Republic.
What happened????….The store was located in the better part of San Francisco. Unfortunately, that was not enough. The company seemed to lose its way in the marketplace and could not compete in San Francisco with the rejuvenation of Macy’s. The company could not attract the best merchants while other stores were developing exclusive relationships with vendors. In the end, the White House was just another promotional department store with an older customer base and with high labor and rent costs. Customers that used to travel to San Francisco to shop were now shopping in the suburban malls. The rest of their customers had passed. The White House became irrelevant. Not many were sad to see the store close.
The White House was on our family list of stores to shop when we came to San Francisco. I bought my first suit there which I needed for debate and speech tournaments. The only distinguishing point about this suit was that it was on sale. It never fit well.
The White House - Kearny Street- 1906 before earthquake and fire
The New White House - Approx 1909
The White House - Calendar - 1931
The White House Tea Room
The White House Tea Room
The White House Tea Room
I trust any customers and/or employee will feel free to leave their comments below. This was too beautiful of a store to let the memories pass without being put in print.
As with my other postcard blogs, please do not copy these postcards without my written permission.