Chico's FAS (NYSE:CHS) has realigned its marketing and digital commerce functions to better support the company's three key brands: Chico's, White House Black Market and Soma.
The move decentralizes key positions and places certain functions within each brand.
The technology and analytics infrastructure and associated back office support will continue to service the brands at the corporate level to leverage scale, according to a company statement. "The realignment will further optimize marketing programs and decrease related expenses."
Chico's expects the reorganization to reduce fiscal 2016 marketing expenses by $11 million and generate annualized cost savings of approximately $14 million.
As a result, Miki Berardelli, president of digital commerce and chief marketing officer, will be leaving the company. Her primary marketing and digital commerce responsibilities will be assumed by the brand presidents.
"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 customers, while at the same time, reducing costs and complexity within the company," said Shelley Broader, president and CEO. "By directly aligning these resources within the brands, we will enable better execution on our customer experience initiative, one of our four areas of focus that we outlined in February to drive results, enhance profitability and increase shareholder value."
Broader, a Walmart veteran, joined Chico's in October.
Chico's has identified four key areas of focus for its banners: evolving the customer experience, strengthening the position of each brand, leveraging actionable retail science and sharpening financial principles.
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