Chico’s FAS Inc. has realigned its marketing and digital commerce functions.
Under the new structure, each brand — Chicos, White House | Black Market and Soma — will be responsible for its own needs. The technology and analytics infrastructure, and related back office support will continue to service the brands at the corporate level. The company said it expects to reduce fiscal 2016 marketing expenses by $11 million and generate annualized cost savings of $14 million.
Shelley Broader, president and chief executive officer, said, “Disbanding these previously centralized functions will result in a leaner, more simplified structure that better supports the individual brand needs and places the functions closer to the customer, while at the same time reducing the costs and complexity within the company.”
The ceo added that realigning the resources within the brands will enable the retailer to better executive on its customer experience initiative.
The company recently disclosed its four areas of focus: evolving the customer experience; strengthening the position of each brand; leveraging actionable retail science, and sharpening financial principles.
In connection with the changes, Miki Berardelli, president for digital commerce and chief marketing officer, will leave the company.
Separately, Chico’s FAS said for the first quarter of fiscal 2016, it plans to present store occupancy expenses and shipping expenses in Costs of Goods Sold to align reporting with its peers. It was previously included in selling, general and administrative expenses.