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    Martha Department Store Restructuring Management Performance Pressure Forced "Accountability System"

    2014/7/5 20:39:00 32

    Martha Department StoreReorganizationManagement

    stay Local market The share of Martha's department store is losing, and the expansion of online and international markets is also being questioned. Guo Fanli, research director of CIC, told reporters that the loss of market share and low performance are the reasons for the restructuring of Martha's department store. "This management restructure is mainly about accountability for management, aiming at forcing management to make greater achievements in performance," he said.


       High level adjustment


    In this time management layer During the change, JanHeere will return to work in the Russian market. PatrickBous-quetChavanne, group marketing and business development director, will be responsible for international business. CostasAntimis-saris, the current director of international business development, has been promoted to the international director, and will report to PatrickBousquetChavanne later. Martha, the multi channel director of LauraWadeGery, will be responsible for the retail business of the United Kingdom besides M&S.com. The former Retail Director SachaBerendji will report to her.


    In addition, Martha, executive director of the food department of the department store of SteveRowe, and JohnDixon, executive director of general commodity department, will be responsible for 4 of the newly appointed two department directors. The chief financial officer AlanStewart will also be responsible for the real estate management business in addition to her duties, and assistant HugoAdams will act as the real estate director to report to AlanStewart.


    MarcBolland, chief executive of Martha, said that in the past 3 years, the team has been trying to internationalize and multichannel the group to adapt to the future retail mode. Now the company has entered the next stage, and the new management mode will make it more responsive.


    Ding Liguo, a senior retail expert, told reporters that the accountability system was generally emphasized by the company as a professional manager's omission, but Martha's department store did not disclose details, so the specific reasons were unknown.


    In Guo Fanli's view, under the downward trend of performance, the accountability system of Martha general store will increase the motivation of managers, but it also has a certain negative effect, that is, the effect is not up to standard and the management personnel will be lost.


       Or adjustment in China Market strategy


    Martha's Department's performance data released in May showed that the pre tax profit for the 2013/14 fiscal year ended March 29th was 623 million pounds (about 6 billion 629 million yuan), down 3.9% compared to the same period last year. Whether it is profitability or market value, it has been caught up by NextPLC, the second largest clothing retailer in China.


    In addition to online business, Martha also hopes to reduce the impact of declining domestic market share through international expansion. At the investor exchange conference, Martha department store said that in the next 3 years, it will expand its five major markets in China, India, the Middle East, Russia and Western Europe, and specifically add 250 new stores. The goal is to increase the income and profits of the international market by 25% and 40% respectively.


    Guo Fanli told reporters that international expansion can alleviate the plight of Martha's department to a certain extent, especially in countries or regions where purchasing power is invested. However, Marsha general department should make a full investigation of the market situation of the investment place so as to make the most suitable investment strategy.


    It is worth noting that the development of Martha stores in the Chinese market is also facing challenges. Prior to this, Martha department store said it would adjust its development strategy in China, focusing on developing existing flagship stores and central stores in Shanghai and looking for local partners.


    In the industry's view, even though the early entry into the Chinese market, Martha's department store's exclusive brand mode has not been approved by Chinese consumers, but its product's British sentiment is considered to be "acclimatized" to the Chinese market. Some analysts say that the old department store has been too conservative and cautious when its competitors are changing rapidly.


    Liu Hui, chief consultant of Beijing based Retail Management Consulting Co. Ltd., told reporters that many retail businesses in Europe and the United States had been declining due to the lack of emerging markets.


    Ding Liguo said that, like Lord Martha, the department store was a Western buyer's model. In China, the experiment was unsuccessful. The transformation mode was one of the ways to save itself.

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