Tiffany & Company is a renowned American luxury retailer that has been dazzling many a customer with diamond jewelries. Songs and movies have been created that positioned this specialty retailer as the epitome of elegance and lavish life. However, last year wasn’t so generous with Tiffany’s. In wake of disappointing revenue and financial struggles, the CEO Frederic Cumenal decided to hand in his resignation.
The management will be going through a radical reorganization. The board Chairman Michael Kowalski will return for the moment as the chief executive of the luxury company. The new position will be only an interim as the management will start looking for the best fit for them for a permanent replacement. The company delegated Kowalski to keep his old responsibilities as a chairman as well.
While Frederic Cumenal managed several major successes, his leadership wasn’t enough to avoid disappointing revenue. While he upgraded the management group of the organization and also stroke a long term position for Tiffany’s, the company didn’t rise to the lowest expectations during the most popular shopping time of the year, the winter holidays. Kowalski officially stated that the company was not content with the economic results, but it will preserve the present business form in the future.
The next direction of the company will be based on speed. Tiffany’s will proceed to improve its customer service, introducing new products more frequently, upgrading the store network, and enhancing business processes. This is the recipe the board wants to use in order to obtain a maximum of productivity and efficiency.
Frederic Cumenal gave his own personal statement regarding his sudden decision. While he is leaving the post to give a chance for another leader to install a more firm growth strategy, Cumenal still believes in Tiffany’s brand. His impeccable expertise that he nourished as a senior leader in the LVMH Group and as the CEO of Moët & Chandon recommended him for Tiffany’s back in 2011.
The main reason the company didn’t perform well during winter holidays was the struggles the American nation went through. The post-election effects contributed to traffic disruptions that affected the New York headquarters of Tiffany’s. This happened because the building is in the proximity of the Trump Tower. Moreover, as the dollar depreciated during the cold season, there were many tourists who chose not to proceed with their shopping sessions due to financial reasons. All these conditions and a lack of firm leadership led to disappointing revenue.
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