Consumer-Centric Journey
The move is part of a multi-year, customer-focused growth plan, Erdrey said on the conference call. As part of its refreshed brand vision, Vera Bradley will focus new marketing investments to acquire new customers with the right media mix, supported by upgrades it has made to its customer data platform over the past few years.
“Our efforts include more creative campaigns, enhanced digital reach, increased public relations efforts and innovative in-store activity to drive interest and acquire new customers,” said Erdrey. “We continue to shift our focus from channel-specific customer acquisition to a multi-channel perspective to drive media effectiveness.”
Related: See how Vera Bradley accelerates merchandising decisions.
Additionally, promotions will pivot from a discount emphasis to brand strengthening with targeted customer-level acquisition offers, strategic incentives and inventory management initiatives to help launch slow-selling SKUs.
Chief Marketing Officer Alison Hyatt said every element of the rebranding was carefully discussed, and the company's goal was to give consumers a new perspective on the brand while also winning back customers who once owned Vera Bradley bags.
“We are strategically marketing our distinctive and unique position as a beloved brand that connects with our core customers on a deep emotional level,” Hyatt said.
Facing consumer reluctance to spend
The company's first quarter results indicate it needs to pique interest from cautious consumers. The company is seeing declines in store visits and spending across all household incomes and channels, especially among households earning less than $75,000, which has higher penetration of its outlet business. Net revenue for fiscal year 2024 is $470.8 million, down from $500 million in fiscal year 2023.
“Given the macroeconomic environment, consumers continue to be more selective with their discretionary spending,” according to Erdrey. Building on a foundation of strong business discipline, a robust technology platform, a strong balance sheet and a dedicated team, Project Restoration's focus on addressing consumer, brand, product and channel elements should drive long-term profitable growth, she says.
Read also: Vera Bradley's responsible sourcing is driven by AI
Vera Bradley, Inc. operates two lifestyle brands: Vera Bradley and Pura Vida. The company was founded in 1982 and acquired a 75% stake in La Jolla, California-based Pura Vida in 2019.
