It’s too soon to know whether or not Zale CEO Neal
Goldberg can turn his company around. But at least in terms of attitude and
outlook, the relative newcomer says the right things. In “Zale’s
Strategies Are Common Sense” for IDEX Online, industry analyst Ken
Gassman broke down some of the CEO’s key strategies:
Cash Is King:This is an oft-repeated refrain, echoed at the National Retail Federation’s 98th Annual Convention & Expo. Retailers of all sizes would be wise to copy Goldberg, who’s cut expenses, reduced inventories and slashed capital expenditures.
Increase Inventory Turn: As Gassman puts it, inventory turn is the bane of jewelers’ existence. While Zale’s turn -- which has increased to 1.2 times annually -- is still low compared to other retail categories, it’s near the top for the jewelry industry. Goldberg achieved this by reducing the number of items in the stores, while making sure the company’s in-stock position is high.
Reduce Number of Vendors: Zale reduced its vendor base by two-thirds. The company is important to its remaining vendors and they’re important to Zale, which is what partnership is all about.
Take The Tip:
For more ideas from Goldberg, read Gassman’s full report “Zale’s Strategies Are Common Sense” at IDEX by clicking here.
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