Crocs to Close 75 to 100 Stores, Eliminate Some Shoe Styles
Crocs announced store closings and layoffs today as part of a new restructuring plan. The company's revenue increased slightly in the second quarter of 2014 compared to the prior year, but its profits grew by less than 1%. Crocs plans to close 75 to 100 of its approximately 600 stores worldwide. They laid off 183 employees.The company has many more products today than when it first arrived on the footwear scene in 2002. The Crocs Original Classic Clogs in black are pictured above. Many fashionistas were horrified by the product when it arrived (and remain horrified today) - but the comfy plastic shoes attracted plenty of regular customers. Some of Croc's many shoe styles today include flip flops, sandals, flats, boots, loafers, sandals and more. They have special collections for kids, including Hello Kitty and Star Wars footwear. Crocs even expanded into accessories including totes, sunglasses and socks. They still have jibbitz which can be inserted into your Crocs to decorate them. Crocs acquired Jibbitz in late 2006.
Crocs' president Andrew Reed admits the company has too many different shoe style options today. Crocs opened too many stores and added too many categories in its expansion phase and now it needs to contract. He told the Wall Street Journal in an interview that some of the shoe styles were "too big a reach for the brand." Crocs has not yet said specifically which styles they plan to discontinue, but the WSJ says some of the categories Crocs will be exiting include its Elite leather boots and dress shoes.
Crocs plans to reduce its shoe styles by as much as 40% so some customers are going to watch their favorite Croc styles disappear. Mario Batali snatched up 200 pairs of orange Crocs as they were being discontinued last year. Hopefully, the company will give a heads up to customers about when it plans to stop producing a specific style or color.
Posted on July 22, 2014