NEW YORK — Peter Boneparth, chief executive officer of Jones Apparel Group, is ready for a challenging year.
In an effort to improve its overall performance, Jones realigned some key management positions last week. It promoted Lynne Cote to the newly created post of ceo, wholesale sportswear, suits and dresses. Boneparth also promoted Mark Mendelson to chief merchandising officer, better apparel; Susan Metzger to president, sales and marketing, better sportswear, and Gregg Marks to ceo of Jones’ suit divisions.
Here, Boneparth gives WWD a preview of what he expects will happen in the coming months:
WWD: What can we expect to see from Jones in the first half?
Peter Boneparth: The first half of ’06 is going to be marked by a good deal of uncertainty. There’s the consolidation of department stores and lots of closings on the horizon. I feel that we really have a great relationship with Federated and May, so I’m confident that we will do well. Also, we feel very good over the long term about the strength of our brands.
WWD: How do you expect to deal with the Federated-May merger?
P.B.: The increasing competitiveness at retail, especially with this merger, will only make us faster and more fashion-right. We are working on offering more exclusive product, and coming out of 2006, I see us having a tremendous growth opportunity with Federated. They are looking to do business with those companies that have the kind of back-end support that Jones has, they are getting rid of the unproductive real estate and trying to sell more goods at regular price. I think we are much aligned with them in that regard.
WWD: How is the growth of Barneys New York going?
P.B.: We are on course with Barneys and very pleased with its performance so far. Now we are executing our plan for more store openings. We really see the Barneys brand as a growth engine. Customers shopping at Barneys are looking for luxury, and I believe that customer isn’t as affected by the economy the way other shoppers are. They are not focused on price and have high levels of disposable income as well as net worth. Our biggest challenge here is how do we stay cool while becoming more commercial? With that said, we are not looking to make Barneys the size of Neimans or Saks, but we do want to grow the brand and continue to open more stores.
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WWD: How about Jones New York Signature? Is it performing as planned?
P.B.: Jones New York Signature was the single largest introduction of a sportswear brand ever and has become a mainstay with our department store customers. It’s been a year of learning, and we’ve learned a great deal. We see the brand continuing to evolve, and I have no doubts that it will develop into a complete lifestyle label. We feel really good about where it sits with our department stores.
WWD: Will you be launching any new brands in the coming months?
P.B.: There are a number of things in the laboratory. This is a business of constant change and we just cannot stay still. You will surely be hearing some things soon in that department.
WWD: It’s been quite a while since Jones made an acquisition. Can we expect any soon?
P.B.: We continue to believe in the need to change and to evolve this company. With that said, I think there is a great deal of opportunity within our core portfolio. We remain very disciplined when it comes to acquisitions.
WWD: How do you see the industry changing?
P.B.: The fashion industry is changing in hyperspeed. Those who recognize that and are able to accommodate that change need the capital and business model to get through it. But, while consolidation is speeding up, I believe there will always be a place for niche brands. It’s just becoming increasingly challenging for these small brands to keep up with the very large companies.
WWD: What would be your advice to a new ceo in the industry today?
P.B.: No matter what you hear, make sure you understand that this business is about the product. We remain a product-focused organization and that all starts with understanding the consumer. It’s so important to invest in consumer research. Without the customers’ approval, you will not stay in business.