Ann Taylor Swot
AN Ann Taylor was founded by Robert Liebeskind, son of a high-class dressmaker, and dates back to 1954. At the time Ann Taylor was a bestselling dress design that was gifted to Robert by his father for good luck. The design of this dress brought to life the “well-dressed woman” and the Ann Taylor legacy was born. Robert Liebeskind opened his first Ann Taylor store in New Haven, Connecticut where the first wave of new stores opened primarily in eastern college towns. Then in 1977, Liebeskind sold his stores to Garfinckle, Brooks Brothers, Miller Rhodes Corporation (http://nyjobsource.com/anntaylor.html, 2011). The Ann Taylor stores refrained from carrying a large variety of name brands, like most department stores, which gave them an advantage, less competition and more pricing flexibility (http://www.fundingguniverse.com).
In the 1980’s, Ann Taylor changed hands three times, once by Allied Stores Corporation then by Canadian financier Robert Campeau who sold it to Joseph Brooks, the founder of Lord and Taylor. Brooks’ focus to become successful with Ann Taylor was rapid expansion and cost cutting tactics. By 1991, Ann Taylor consisted of 176 retail stores and 53 outlet stores but, the stores were still carrying a heavy debt load. The industry was slowing, so it seemed like a good idea to offer stock options. The offering went well and seven million shares were sold at $26 per share, providing the cash flow necessary to continue planned expansions (Furman, 1995). The offering also increased Ann Taylor’s burden to perform well in sales and earnings growth however, it was in the face of such pressures that some decisions were made that would eventually prove detrimental to the company. New management decided that the typical Ann Taylor customer of the 90’s was not as wealthy as its earlier clientele had been, so in an effort to broaden its appeal and cut expenses, the company began using fabrics of lesser quality for the first time. Another poor
In the 1980’s, Ann Taylor changed hands three times, once by Allied Stores Corporation then by Canadian financier Robert Campeau who sold it to Joseph Brooks, the founder of Lord and Taylor. Brooks’ focus to become successful with Ann Taylor was rapid expansion and cost cutting tactics. By 1991, Ann Taylor consisted of 176 retail stores and 53 outlet stores but, the stores were still carrying a heavy debt load. The industry was slowing, so it seemed like a good idea to offer stock options. The offering went well and seven million shares were sold at $26 per share, providing the cash flow necessary to continue planned expansions (Furman, 1995). The offering also increased Ann Taylor’s burden to perform well in sales and earnings growth however, it was in the face of such pressures that some decisions were made that would eventually prove detrimental to the company. New management decided that the typical Ann Taylor customer of the 90’s was not as wealthy as its earlier clientele had been, so in an effort to broaden its appeal and cut expenses, the company began using fabrics of lesser quality for the first time. Another poor
Cited: http://nyjobsource.com/anntaylor.html. (2011, May 20). Retrieved May 24, 2011 Furman, P McNally, P. (1994). The AnnTaylor Footwear Formula. Footwears News, 56. Steinhauer, J. (1995). Can Ann Taylor Dust Itself Off? New York Times, 35. Elizabeth Howe June 7, 2011