As more customer shopping shifts from traditional phone ordering to a multi-channel model, phone center contact at Lands’ End has declined, sparking the retailer’s decision to close its Cross Plains, WI, call center this June, Lands’ End has announced. As the result of a combination of reduced phone center demand, and a decision to streamline business operations and restructure product development functions, Lands’ End will reduce its workforce by 200 full-time and 175 part-time positions.
Merchandising, design, inventory, quality and sourcing resources will be restructured into specialized functions, while Internet operations will be integrated into each functional area, the company said. The changes will help Lands’ End “ensure consistency across multiple channels and respond more quickly to the business,” the company says.
“This is a difficult business decision because of the employees involved, but it is necessary to position the company for the future,” says Mindy Meads, CEO of Lands’ End. The company says it will offer a severance package that includes outplacement and educational assistance.
Last year, Lands’ End web-based sales were estimated at $511 million, roughly one third of overall Lands’ End sales that were estimated at $1.6 billion. Lands’ End web and catalog sales are reported under the direct-to-consumer segment of parent company Sears, Roebuck & Co.
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