Crocs set to close down 160 stores by 2018
For the second consecutive year Crocs has posted a decrease in revenue. The US footwear brand lost 4.7% in 2016, down to nearly €990 million ($1.036 billion), with losses amounting to €30 million ($31.7 million). This has caused Crocs to announce a string of store closures for the first time.
Sales for the US plastic clog specialist decreased across all markets, chiefly in Asia, where they fell to €375 million ($395 million), compared to €405 million the previous year. In Europe, sales slumped to €165 million ($173.4 million), equivalent to an 8% shortfall, and in the USA they lost 1.9%.
Not surprisingly, Crocs has announced an overhaul in its managerial and retail structure for 2017. General Manager Ribatt Gregg stated he wants to streamline the store network, aiming to cut operating costs. By 2018, 160 stores are expected to close, bringing the number of shops operated by Crocs down from 558 to 400.
The group is also reshuffling its senior management team. Ribatt Gregg will step down from 1st June, to be replaced by Andrew Rees, who will then combine the functions of General Manager and Board Chairman. Gregg will however remain as a board member. In terms of the regional organisation, EMEA Vice-President David Thompson will also take direct control of Europe, until now managed by Ann Chan, who will instead take charge of America.
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