Shareholders in uproar over Clarks’ new global strategy

Clarks is facing a shareholder revolt after merging its UK and international businesses.

Clarks family members and shareholders are understood to have serious reservations about the switch towards a global strategy, which will create a unified brand vision with the same storefit, marketing campaign and a core product range across all its markets.

Shareholders are understood to have called an emergency meeting with the board, to be held at the end of this month.

One Clarks shareholder told Retail Week that shareholders had challenged the board to come up with a new strategy after sales slipped significantly at the company. Profits for the year to January 31 were down 10 per cent and trading is understood to be difficult at present.

The shareholder said: ‘We wanted something done about under-investment in product - not this. The UK and International are different animals. The UK business is reactive and price conscious, whereas international relies on long-term product developments.

‘We’re not convinced a new, merged management team will be able to manage such a large and diverse business effectively. No other brand has managed to implement a global strategy effectively.’ A second shareholder added: ‘There is serious unrest and dissatisfaction with this.’

Under the merger, UK operations director Melissa Potter has been promoted to the board as managing director of Clarks International. Her remit includes all markets excluding North America. Sources told Retail Week that chief executive Peter Bolliger was lining up Potter to take over his role when he retires. One shareholder said: ‘The jury’s out on whether she will really revitalise the product. There has been no real investment in product under her in the UK market over the past two years.’

A new global management team has also been created under Potter. Former marketing director Rosemary Carr has become global brand director and Jane Wilson has been promoted to product and merchandising director from children’s director. Meanwhile, Steve Smith has moved from finance to the new position of supply chain director. Sourcing director Dermot Smowton, IT director Tim Fleming, sales director Ken Dobinson, retail director Chris Jewell and HR director Sarah Kavanagh have taken on global responsibilities.

No comment was available from Clarks about the revolt.