Faced with global retail market-by-market fluidity due to impacts from the COVID-19 pandemic, Skechers has sharpened its focus on three new initiatives: An online shopping platform, an improved mobile application and a customer loyalty program.
Plans for the trio of improvements were revealed to Wall Street last week when the company reported second-quarter results that include a 42 percent drop in period sales to $729.5 million, but 428 percent growth in company-owned e-commerce sales. Topline was most impacted by retail closures around the globe during the period ended June 30. Skechers suffered a nearly 36 percent decline in U.S. comparable same-store sales due to store closures prompted by the pandemic.
The company’s revamped website will be extended to additional countries later this year and more in 2021. CFO John Vandemore says platform improvements range from better navigation and merchandise photos to “improved back-of-house systems” to support orders, and stronger integration that will enable Buy Online; Buy Online, Pick Up In-Store (BOPIS) and Buy Online, Pick Up at Curb. An improved Skechers’ mobile application and customer loyalty program are expected to follow the new website.
On the distribution center front, a new DC in China will now begin limited operations in the third quarter before becoming fully operational in H1/2021. And the cost of an expanded U.S. DC, which is currently handling all wholesale orders, owned stores and online purchases, is projected to be in the $90 to $110 million range.