Dive Brief:
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PacSun on Wednesday said that Alfred Chang has been promoted to president, overseeing the brand's design, merchandising, marketing, retail and e-commerce functions. He reports to Mike Egeck, chief executive officer of PSEB, the new operating company running Eddie Bauer and PacSun.
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Chang joined PacSun in 2006 as senior buyer for men's and has served in other senior roles there. He has been "critical" in expanding brand partnerships and establishing exclusive collections of in-demand brands and styles, according to a company press release.
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The company also said that Brie Olson has been named chief merchandising officer for the men's and women's divisions, and Joel Quill has been named vice president of stores. Both will report to Chang.
Dive Insight:
PacSun launched in 1980 as a Newport Beach, California surf shop and has since morphed into a mostly mall-based national apparel chain with 422 stores in all 50 states plus Puerto Rico. That's after a shrinking of its footprint since a rather smooth bankruptcy process two years ago.
Before that filing, PacSun had struggled for years and was posting losses since 2008, due in part to a failure to compete with inexpensive, on trend fast fashion rivals like Forever 21 and H&M, which have more sophisticated logistics that keep up with trends as they emerge. Teen retailers like PacSun have also found that customers, especially younger millennials, are holding on to their discretionary funds, choosing to spend on experiences rather than new clothes.
Many have bounced back, however, amid merchandising pivots and store upgrades, and thanks to a robust economy. American Eagle (in part thanks to its successful Aerie lingerie brand) and Abercrombie & Fitch (whose more successful, lower-priced Hollister brand in particular challenges PacSun with its own California vibe), both posted healthy sales gains in their recent quarters.
The combination of Eddie Bauer and PacSun, which occurred earlier this month, is an efficiency play by private equity owner Golden Gate Capital, though Golden Gate Managing Director Josh Olshansky assured customers and fans that they won't see any change in their store or online experience. The firm acquired both companies during Chapter 11 proceedings, PacSun in 2016 and Eddie Bauer in 2009.
At the beginning of the year, PacSun said that it worked with Columbus Consulting to develop a roadmap and identify unified commerce goals and to provide an enhanced, more seamless customer experience across channels, according to a press release.
