New Zealand apparel retailer Postie Plus Group Limited (PPLG) has lost another member of its executive team, following a tough trading period and the recent resignation of its CEO.
PPGL director Paul Smart has resigned from his position at the company citing his increasing workload on other boards as the reason for departure.
Smart has contributed to the PPGL board over the last ten years and will be replaced by a recently appointed director, Hamish Stevens.
Stevens is a chartered accountant and holds both B.Com and MBA degrees from the University of Auckland and has also had extensive experience in senior executive roles within the consumer goods sector including CFO positions with Tip Top Ice Cream and DB Breweries, according to PPLG.
The switch follows a period of upheaval at the New Zealand retail group since last year.
As previously reported on ragtrader.com.au, the company announced plans to restructure its executive leadership team in May 2012, and sell its childrenswear brand, Babycity, to focus on building the flagship Postie brand and business model.
However, in the midst of efforts to revamp the business, PPLG suffered a blow in August 2012 when it was revealed its CEO Ron Boskell would stand down in January 2013 to make way for further renewal in the management team.
Since then, PPLG has reported that its directors are “fully engaged” with management and external consultants in a profit improvement programme originally intended to commence last year.
According to PPLG, he plan to turn around the business includes “more frequent updates during this recovery phase”, in addition to a implementing a number of profit improvement opportunities in the following areas:
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Sourcing and Supply Chain
The new buying team is focused on margin improvement through price negotiation, range selection, shorter lead times on seasonal apparel and improved quality. -
Store Operations
Savings are being realised through a one off staff resource reduction initiative. A stronger well supported sales force will also become evident through the remainder of this calendar year. -
Marketing
A renewed focus on the effectiveness of our marketing is targeting greater sales per marketing dollar spent.
Commenting on the task ahead, PPLG chairman Richard Punter said the majority of the profit improvement programme benefits are forecast to be realised in financial year 2014 and financial year 2015.
Punter also confirmed that the search for a CEO has commenced, with a number of “strong candidates” identified.
He also said PPLG is considering a proposal from its bank for ongoing facilities.
“We are all committed to delivering the benefits of this programme and ensuring PPGL looks to an improved future financial performance,” Punter said.
PPLG year to date sales, as reported on June 10, 2013 are $62.719 million, a decrease of 5.4 per cent on last year’s $66.322 million.