Clarks announces strategic overhaul after challenging 2024

C&J Clark Limited, the parent company of the iconic footwear brand Clarks, navigated a challenging and transitional year in 2024, marked by leadership changes and a complex global economic environment.

The company reported a statutory turnover of 901.3 million pounds, a 9.4 percent decrease from the previous year, and a loss after tax of 39.3 million pounds. Despite these financial setbacks, the company initiated a comprehensive strategic overhaul aimed at stabilizing its foundations for sustainable profitable growth in 2025.

The year saw an internal shift with the departure of CEO Jon Ram in April, leading to the formation of an interim executive committee to ensure continuity. Externally, Clarks faced widespread uncertainty amid challenging global market conditions, which contributed to reduced consumer demand. In response, the company focused heavily on cost rationalisation, including headcount reductions, consolidation of teams, and relocation of transactional functions to lower-cost regions like Malaysia.

Operations were streamlined through the outsourcing of IT development and the consolidation of European warehouse activities. Furthermore, Clarks repositioned its product assortment with updated pricing strategies and introduced an "essentials range" in the UK to cater to price-conscious customers, while refocusing marketing efforts to drive traffic to stores and online.

Retail performance in both the US and UK fell below expectations, as consumers remained cautious and favored lower price points, leading to increased promotional activity and softer margins. However, retail momentum showed a gradual improvement in the latter half of the year due to targeted marketing and merchandising initiatives. Wholesale performance remained largely consistent with 2023, with the US continuing as the largest market, though UK sales were boosted by off-price deals that negatively affected margins.

In contrast, the APAC region demonstrated increasing consumer demand, particularly in direct-to-consumer channels. Clarks also expanded its premium Clarks Originals concept stores in China and Hong Kong, building on the success seen in Japan, and launched its "China for China" product line tailored for the Chinese market.

Looking ahead, Clarks' strategic ambition for 2025 is centered on three core pillars: driving profitable market share growth in mature markets while expanding aggressively in less established ones; enhancing profitability through rigorous cost control and operational excellence; and simplifying its organizational structure with clear accountabilities.