American retailer intends to implement ambitious plans to increase profits and expand its global presence by 2025.
Guess, Inc. presented its plan for the next five years during Investor Day at InterContinental Times Square in New York. The five-year roadmap includes several strategic steps to increase brand value, deepen customer relationships, expand brand presence across countries, and improve product performance.
The company plans to increase sales by $250 million and operating profit by $150 million by 2025. According to Carlos Alberini, Chief Executive Officer of Guess, the company has developed "a plan based on current regional trends, with clear double-digit operating margins, mainly through improved operational efficiency.
The company intends to optimize brand architecture by the distribution of consumers into three groups - the older generation, Millenials, and Generation Z. In order to influence young customers, the brand will expand cooperation with celebrities and social media stars. It will be one of the most critical steps in the direction of strengthening the importance of the brand in the global market.
The brand announced that the focus of the changes will be on the customer and that changes in processes and platforms should lead to a comprehensive experience for customers without any problems. The company will expand its distribution routes, improve logistics and general infrastructure, optimize the channels for raw materials receipt, as well as the system of inventory storage, and focus on improving the efficiency of development and production processes.
The company also announced the expansion of the product range, considering the needs of customers in different regions. This step and others should eventually lead to an increase in brand presence on a global scale.