David’s Bridal has exploited a new CEO to lead the company while seeking to transform a retailer inherited into a power of the nuptial media almost two years after emerging from his second bankruptcy.
Kelly Cook, the current president of the brand, technology and finance, will take over as David CEO on April 1 and only become the second woman of the 75th anniversary of the company history to occupy her job.
As part of the appointment of Cook as Director General, the current CEO Jim Marcum will become executive president of David, in addition to his current role as chairman of the board of directors.
In an interview with CNBC, Cook described her business vision and the work she does to bring David’s to the future. At the heart of the new strategy, positions David’s as a media company that uses content to bring customers, then uses this data to generate advertising revenues for its new Pearl Media network. As for retailing the company, David plans to develop an online market and become an asset-book company that relies on a network of suppliers to create products and execute orders.
“So we already sell about a third of the wedding dresses in the United States … The nuptial dress is what we are doing, that’s what we are, but we are broadening the side of shopping to include more categories than it requires, men’s combinations, men’s clothing, rentals, swimsuits, used dresses, the party dresses”, said Cook. “All of this is added via a drop -down shipping market model and this allows us to add sellers very, very quickly, this allows us to set up very, very quickly … compared to the past, where we should build more stores and add more area.”
David’s efforts to transform come from two years after leaving a bankruptcy induced by the pandemic which almost ended his business. He managed to keep around 200 stores opened after receiving an offer probably from the Asset Manager Cion Investment Corp. – The only company willing to acquire David stores and stocks, not just its brand and intellectual property, reported reports previously.
Now David’s attracts a new list of investors and said on Tuesday that it had received capital commitments from a number of companies, including investment capital platforms and those that offer debt. He refused to appoint companies, but said that new capital will be used to feed the business transformation.
Cook said that the company was able to court investors by praising its new interpretation of the retail sale of the bride. Currently, David manufactures approximately 90% to 95% of its inventory, but it aims to bring the business to a 50/50 distribution between its own manufacturing and exterior sellers, said Cook.
This transition to an asset -Lite model will help protect the business from existential risks that have bankrupt it twice before – stocks and store leases – which can be among the biggest burden on the balance sheet of a business.
In addition, he follows behind Walmart In its expansion in advertising, or the so-called retail media, which is a means for relevant brands to advertise consumers directly on the website of a retailer or in its stores, among others.
The retail media are a new way for companies to generate new income flows at a time when the retail of specialties has never been more difficult to do well. The increase in competition, the uncertain demand and the vertiginous speed that trends move these days have forced the inherited players to become more creative if they want to survive in the long term.
The company affirms that it serves 90% of the global bride market, but only sells about a third of all wedding dresses in the United States, showing that it still has a wide gap to fill and many changes to be implemented before starting to grow. He will also have to manage his debt carefully and guarantee that these new strategies are paid to avoid being in front of the bankruptcy court for the third time.
David’s is a private company and does not disclose its income or profits, but Cook said that the company planned to develop “in a way that stimulates profitability as quickly as possible”.
“This is definitely a new era of David, that’s for sure,” said Cook. “The brides are evolving and we are playing with her.”