Writing
a new chapter
Borders authors a business best seller
Challenge:
Reestablishing all-important
credibility is easier said than done. Still, that was the task for Borders
Group, Inc. The
goal: restoring the credibility once enjoyed by the management team that
had led Borders from a division of Kmart to an industry leader retailing
books, CDs, DVDs and gifts and operating in-store cafes. Borders has
400
locations worldwide; an online operation, Borders.com; two subsidiaries,
Waldenbooks and Books etc.; and aggregated sales in excess of $3 billion
annually.
Insight:
Plummer & Associates believed it would take a leader who could take charge
and move rapidly in the highly competitive world in which Borders operates.
Experience in book retailing or publishing was not a prerequisite and,
in fact, an executive with a fresh perspective was viewed as preferable. Solution:
Plummer & Associates identified a candidate who had proven himself in the tough
supermarket environment as EVP/General Manager of Jewel Food, a $6 billion
retailer, and its Osco Drug division. Jewel is known as a proving ground for
top
retail talent.
Benefits:
Plummer & Associates' candidate joined Borders and today the company is
setting records for performance in its industry. The new executive introduced
category management and eliminated poorly performing businesses. He has
since been promoted to Chairman.
A custom blend
The right ingredients make a difference for Starbucks
Challenge:
Growing
rapidly in the U.S. and poised to expand overseas, Starbucks Coffee Company
was in need of a strong financial leader after its previous CFO was promoted
to President. The requirements made for a heady brew: knowledge of capital-raising
and debt markets, experience in fast-growth situations, and an understanding
of the restaurant and retail businesses from the perspective of a general
manager.
Insight:
Finding the right combination of skills, experience, intellect and energy
isn't like ordering a large mocha. Plummer & Associates had to call on
its own 14-year history and extensive network of contacts to narrow the
field to the few candidates who measured up to this task. Solution:
We recruited a senior financial executive from the Family Restaurant Group,
where he had been EVP CFO. Previously, he had been President of the El
Torrito Restaurants division, a 165-unit restaurant chain. Prior to that,
he was the CFO of the W.R. Grace Restaurant Group, where he helped put
together the LBO that created the Family Restaurant Group.
Starbucks' new CFO quickly and comfortably assumed his role and proved to be instrumental in supporting the company's growth — it now has about 5,000 locations worldwide — and its expansion into multiple channels. Since then, he has added the title of EVP/Chief Administrative Officer and assumed even broader responsibilities. For Starbucks, Plummer & Associates later recruited its President — North American Retail. top
The search for fiscal fitness
Like Atlas, this executive would have to do some global lifting
Challenge:
The sun never sets on 24 Hour Fitness, the largest worldwide operator
of fitness centers. Based in San Francisco, 24 Hour Fitness has centers
in 16 states in the U.S. as well as Asia and Europe, and generates annual
revenues of more than $1 billion. While 24 Hour Fitness builds healthy
bodies, it's all too easy for flab to creep into such far-flung operations.
What was needed was a financial officer with the mind set of an aerobics
instructor.
Insight:
A CFO for 24 Hour Fitness would have to be a strategic thinker and, for a fast-growing
company, would need in-depth knowledge of capital markets. In addition,
Plummer & Associates felt that experience with multi-unit operations was
critical. But the defining difference would be solid international credentials.
This was no place for a novice.
Solution:
Plummer & Associates recommended a candidate from Burger King who brought
experience with nearly 11,500 units operating in all 50 states and 55
countries. On the strategic side, he also came with significant financial
planning experience.
Benefits:
As Chief Financial Officer/EVP, Plummer & Associates' candidate helped
guide the company to a smooth integration of the significant acquisitions
it had made just before he joined. He has also strengthened financial
risk management policies and enhanced the strategic planning process.
Plummer & Associates has continued to work with 24 Hour Fitness, placing
the SVP of Operations, the SVP of Human Resources, the VP of Fitness
Branding,
a VP/Treasurer, two Assistant Treasurers, and Vice Presidents of Operations
for two regions.
Staying on the leading edge
Circuit City powers up its merchandising
Challenge:
Richmond, Virginia-based Circuit City Stores Inc. is a leader in consumer
electronics retailing, with 600 stores and sales in excess of $10 billion.
Despite Circuit City’s longtime success, management felt it needed
to shift to a merchandising-driven strategy.
Insight:
It would take a world-class merchant to develop and implement a reinvigorated
merchandising philosophy throughout Circuit City and, given the fast pace
of technological change in consumer electronics, hands-on experience was
essential.
Solution:
Plummer & Associates recruited a senior merchant from Target Stores,
one of today’s most respected hard goods retailers.
Benefits:
The executive we placed brought the background and skills needed to hit
the floor running. His experience and insights breathed fresh thinking
into Circuit City’s merchandising efforts.
A leader for Levitz
Furniture retailer gets a makeover
Challenge:
Levitz, a leading chain of promotional furniture warehouses, engaged Plummer & Associates to recruit an executive to lead the store organization.
Our client needed someone who was well versed in “big ticket” sales
and who could quickly upgrade the sales organization and promote a strong,
sales-oriented culture.
Insight:
Plummer & Associates understood Levitz’ emphasis on “big
ticket” sales experience, but we felt that shouldn’t be a
game breaker for the right person. To us, it was more important to recruit
a merchant with a passion for selling and ability to inspire others.
Solution:
For the position of President, Store Operations, we recruited an executive
credited with leading the dramatic domestic and international growth of
Sunglass Hut International. Previously, he had led the retail business
for Liz Claiborne. As for the big ticket experience, he had previous experience
leading a retail furniture business owned by R.H. Macy. He had also been
an executive for the Broadway division of CarterHawleyHale.
Benefits:
Approximately a year after joining Levitz, this executive was promoted
to Chairman and CEO. He is credited with refocusing Levitz and saving
it from liquidation by allowing half the company to be consolidated with
Seaman’s and leaving the west coast operations as a separate and
viable business.
A genius for retailing
At Zany Brainy, vision becomes reality
Challenge:
Zany Brainy sells “extraordinary toys for extraordinary kids.”
A few years ago, it was early in its growth cycle … a position full
of opportunity, but fraught with risk as well. A merchant who could steer
through uncharted waters and take the company founder’s vision
to a wholly new level was what was needed.
Insight:
The merchant we recruited would not only have to possess great retailing
skills, the right chemistry between our candidate and Zany Brainy’s
founder would make or break the chances for success.
Solution:
We recruited a Chief Merchant who had excellent retailing credentials
and interpersonal skills. He shared and supported the founder’s
vision, but added value with crisp execution, solid controls and
flair for creativity.
Benefits:
We recruited the Chief Merchant at a time when the company had less than
30 stores. He grew with the company and continued to assume greater
roles,
eventually becoming the President and, next, the Chairman and CEO.
The chain grew to more than 300 stores and was the acclaimed “Retailer
of the Year” in 1999. Capping the string of successes,
Zany Brainy then held a successful IPO.
Tax service goes from bankruptcy to bonanza
Challenge:
Founded in the mid-1980s, Jackson Hewitt, Inc., the organization behind
the Jackson Hewitt Tax Service, was close to bankruptcy when
Plummer & Associates
was asked to recruit a CEO whose mission was saving the company
and engineering a complete turnaround.
Insight:
We reached beyond conventional boundaries to recruit an executive with
strong operating skills and a dedication to strict controls, but also
the ability to expand operations once financial health was restored.
Solution:
Our candidate came from Dairy Farm, a local food chain. While he had no
experience in the services industry, he met every other prerequisite and
had the ability to immediately grasp the situation, identify problems,
develop solutions and monitor their implementation.
Benefits:
The executive we recruited led a complete turnaround, resulting in the
sale of the company in just 14 months. This sale provided investors with
a return on investment that set records for venture-backed multi-unit
retail organizations. Moreover, today, Jackson Hewitt is the fastest-growing
national tax service, with more than 3,300 offices in 47 states and the
District of Columbia.
From mail to mainstreet
Multi-channel strategy takes Anthropologie from one store to a powerful brand
Challenge:
Founded in 1992, Anthropologie, a retailer of unique interior environments,
gifts and apparel, operated from a single store. But, its parent –
Urban Outfitters, Inc. – saw national chain potential. Envisioning
a retailing powerhouse, they needed a merchant who was equally
at home with store operations and catalog selling.
Insight:
Plummer & Associates sought an executive with merchandising, catalog
and general management experience and felt that a knowledge of
furniture, furnishings, household goods and gifts was essential.
Solution:
We recruited an individual who was well regarded as a “tasty”
and creative merchant. He had been the General Manager of Bloomingdale’s
by Mail and before that he was the chief merchant for the company’s
“mainstreet” business. More recently, he had been President
– Merchandising for Habitat in London and President of a division
of Williams-Sonoma.
Benefits:
Since joining Anthropologie, this executive has rolled out this retail
concept to 26 stores in the U.S., producing a volume nearly equal to that
of the Urban Outfitters division. He has also set up a successful catalog
business and Web site. In addition, Anthropologie operates a wholesale
division that sells to its own stores and to more than 1,300 other accounts.