Levi’s Realigning Around Direct-to-consumer Business

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Levi Strauss & Co. is reorienting around the direct-to-consumer business to make a broader lifestyle play.

Chip Bergh and Levi Strauss & Co. are breaking with the past, transcending the denim giant’s wholesale roots and reorienting around the direct-to-consumer business to make a broader lifestyle play.

• Jen Sey will be elevated to Levi’s brand president, up from chief marketing officer, and will oversee marketing, design, merchandising and brand experience. They all report directly to Bergh, who has led a renaissance at Levi’s and took the company public again only to find himself at the helm in the midst of a pandemic. Levi’s moved quickly, cutting about 700 jobs in the second quarter and managing to return to profitability in the third because of the cost cuts.

“Today, d-to-c is approaching 40 percent and we have an ambition to grow it well beyond 50 percent and see a clear path there,” Bergh said. “We’re going to double down on digital transition.” Levi’s, for instance, is bringing its Red Tab product to 500 Target stores by next fall — a move that would have years ago been seen as a shift downmarket, although it has more of an air of expansion today and was painted as a move up by Bergh.

 

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