Can footwear specialist Clarks get back into its stride or is the brand dead on its feet?

Clarks has hit headlines for many reasons of late, including sliding sales, a conveyor belt of senior team departures and the return of a former executive, who sources say is back running the day-to-day business of the famous footwear brand. 

Over the past five years, Clarks has undergone an ownership change and seen three chief executives at the helm, so it’s fair to assume that it has been far from smooth sailing.

The brand was rescued by private equity firm LionRock Capital in November 2020, following a company voluntary arrangement (CVA) that saw the Clarks family lose its majority share of the company. In January 2021, Viva Holdings group acquired 51% of LionRock’s share in the Clarks brand in a £51m deal.

So what’s gone wrong at the British heritage brand in the period since? And can Clarks turn its fortunes once and for all?

Top team turbulence

To date, the turbulence at Clarks has been majorly driven by the instability within its top team, an essential part of the direction of any business.

Retail Week reported the latest swathe of senior management departures last week, including chief marketing officer Tara McRae, head of retail Nick Hayward and global kids and accessories category director Rosie McKissock, among others. 

The latest departures also follow those of chief executive Jonathan Ram, managing director Bob Neville and chief product officer Victoria Jones – despite Ram and his top team being brought on board to lead the redirection of Clarks and kickstart a “new phase” of the brand.

The departures have also come alongside the return of former boss Victor Herrero, in his capacity as a board member of the brand’s majority shareholder Viva Goods, which sources say has also caused confusion within the business as a new CEO is yet to be named.

A Clarks insider said without the brand redirection and refresh that Ram was drafted in to lead, Clarks is unlikely to have longevity as its main route to market will remain via promotional activity for “discount-hungry” shoppers. 

Retail Navigator senior retail analyst Beth Bloomfield said that the lack of direction from the top combined with external market challenges have caused Clarks a raft of problems.

“A slew of leadership departures is not helping Clarks regain momentum, with group sales still sitting well below pre-pandemic levels,” she added. 

“While it remains the UK’s largest specialist footwear retailer, it has faced competition from discounters and non-specialist fashion retailers over the years as customers grapple with rising costs. Supply chain is a key area the retailer plans to focus on, looking to significantly shorten lead times so it can adapt more quickly to the latest trends.”

Until a new CEO takes the lead at Clarks it remains to be seen if the strategic direction of the business can return to the straight and narrow.

Bringing back heritage

Aside from the lack of direction, Clarks has had to battle more than ever to remain relevant in an increasingly competitive market.

As a British heritage brand known for its practical and traditional classics, the footwear retailer has recently ramped up its efforts to keep up with trends, releasing collaborations with TV show Stranger Things, New York-based streetwear brand Supreme and a partnership with footballer Raheem Stirling, among others.

GlobalData apparel analyst Louise Déglise-Favre said that despite the collaborations sparking more of an interest in the brand and products such as the Wallabees trending again, it still has more to do to bounce back.

She added: “I think it’s about striking that line in the same way Birkenstock and Crocs have. Birkenstock’s shoes [clogs] that were once called ‘ugly’ have become fashionable again and Crocs have especially become massively popular in recent years.

“Those shoes that are chunky and a bit more rugged are doing really well again. I think [Clarks] has the potential to enter that segment more heavily than it already has. In the UK specifically, I think it’s still a brand that’s really popular for school and kids shoes in general.”

While Déglise-Favre thinks the Clarks brand still has potential to be revitalised, she adds that it needs to keep an eye on prices.

“They do need to be careful with their pricing as it has got quite expensive which might be putting people off.

“We’re still in a situation where people’s incomes are squeezed and financial levels are not as good as they used to be so pricing is something the brand needs to keep an eye on moving forward to avoid deterring people in general but especially parents.”

Despite there still being hope for the Clarks brand, the overall feeling is that until a new team is drafted in to steady the ship and it strikes the balance between practicality, trends and price points – the damage to the business and brand perception is only increasing.