Frederica Marchionni was appointed as CEO of Lands’ End, the catalogue retailer that featured durable and basic-fashion clothing, in February 2015. She had previously been the president of the high-fashion company Dolce & Gabanna USA and was a senior vice president of Ferrari before that. Her hiring was a heavy departure for the Wisconsin maker of practical clothing. Lands’ End was trying to enhance its brand and appeal to the fashion-conscious consumer. The company had been acquired by Sears in 2002 before becoming an independent company again 12 years later.
After 19 months on the job, Marchionni was forced out as chief executive. During her brief tenure, she tried to bring about major changes at Lands’ End that angered employees and turned away shoppers. Marchionni pushed to inject high style into the maker of outdoor-type and casual clothes by adding slimmer fits, stiletto heels, and a fresh line of active wear. She revamped the catalog, hired celebrity photographers, and paid for input from a Vogue stylist.
The focus on high fashion did not appear to be a good fit for Lands’ End. The company had found a niche in high-waist jeans and practical outwear and specialized in cold-weather clothing. With sales declining during a difficult period for most retailers, the board at Lands’ End had to try something different. But featuring many slim-fit styles and SoHo pop-up stores seemed destined to displease the brand’s core demographic group. Marchionni had reduced catalog expenditures to invest in the pop-up stores.
Company insiders said that Marchionni spent only about one week per month at the company headquarters in Dodgeville, Wisconsin. She spent the rest of her working days at an office in the garment district of New York City. When Marchionni was hired, the board wrote into her contract that she could remain in New York. As losses were increasing, the company board thought that Marchionni was trying to make too many changes too quickly. One of the changes she proposed was to make Lands’ End less dependent on weather by focusing on clothing that can be worn year-round. The company had been deriving a big chunk of its revenue from coats and bathing suits.
Marchionni made one mistake that cast doubt on her ability to empathize with the typical Lands’ End customer. In a new catalog, she tried to illustrate the idea of Lands’ End being an American icon by interviewing another American icon, Gloria Steinem, who was known for her strong liberal views, including a pro-abortionrights agenda. A swift negative reaction surfaced to the interview from many of the company’s conservative customers. Many customers and Catholic schools, a large number of which had purchased school uniforms from Lands’ End, said they would boycott the company because of Steinem’s active pro-choice position. (The interview in the catalog did not mention abortion.)
Not all opinions of Marchionni’s performance were negative. Steven Marotta, a retailing analyst, applauded her efforts and described her as “an effective brand manager and operator.” He also noted that Marchionni’s progress was stymied by the worst consumer-goods market in eight years.
Marchionni also believed that she made a positive contribution to Lands’ End, saying: “I am honored to have led this extraordinary company and proud to have succeeded in providing a vision to expand its position in the industry with a multi-dimensional strategy. However, the board of directors and I have agreed it is time for others to bring Lands’ End into the future.”
