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Facing sinking sales, many retail and consumer brands turned to new leaders this year in the hopes of righting the ship. We’re breaking down five of the most notable CEO appointments, the challenges they inherited, and the efforts they’re enacting to turn things around.
Nike
This summer, speculation swirled that Nike CEO John Donahoe was on the chopping block amid slumping sales for the sneaker maker, with efforts like its DTC push and lackluster marketing to blame. Donahoe then announced his retirement in September. He was replaced by Elliot Hill, a 32-year Nike exec who began as an intern in 1988 and stepped away from the company in 2020. Hill has largely been quiet since taking over, but on its Q3 earnings call this week, he shed some light on its turnaround plan: doubling down on Nike’s commitment to partnerships and curtailing discounts and promotions. “We’ve become far too promotional,” he said during the call. “The level of markdowns not only impacts our brand but disrupts the overall marketplace and the profits of our partners.”
Starbucks
In August, Starbucks named Chipotle CEO Brian Niccol as its new CEO, replacing CEO Laxman Narasimhan. Since taking over, Niccol has eliminated the nondairy milk upcharge, and said he’s bringing back both its coffee condiment bar and the Sharpies used to write consumers’ names on the cup, and is working to improve its mobile ordering.
Victoria’s Secret
Savage X Fenty CEO Hillary Super left the brand to lead Victoria’s Secret as CEO in August, replacing three-year CEO Martin Waters as the lingerie retailer faced slipping sales. Since she’s joined, the Victoria’s Secret Fashion Show returned, signaling younger consumers’ desire for “more glamour,” Super said on the call for her first earnings as CEO earlier this month, which showed positive signs as losses narrowed.
Under Armour
Under Armour, facing dipping sales, announced in March its founder Kevin Plank was returning to the CEO role after exiting in 2019, taking over from Stephanie Linnartz, who’d held the role for about a year. While several former executives believed he caused many of the issues that led to stagnant sales growth, per the Wall Street Journal, the company is betting on Plank’s return to right ship. This week, the brand held its first investor day in six years, outlining its turnaround plan.
Estée Lauder
The Estée Lauder Companies ended months of drama over its successor in October when it named company vet Stéphane de La Faverie as its new president and CEO, effective January 1. Fabrizio Freda, its CEO since 2009, announced his retirement in August. De La Faverie will inherit challenges as the company faces weak travel retail and restricted spending in the US.