Never miss an opportunity that a crisis creates! That’s what the CEO of Levi Strauss & Co, Chip Bergh, believes.
In an interaction with media, Chip said that while American clothing giant too hasn’t been able to escape the wrath of COVID-19 pandemic, there are always opportunities to expand further.
The sales of the company have been hit and Levi Strauss & Co. does not expect it to grow further in 2020. After expecting revenue of US $ 6 billion in 2020, the company may now end up generating only US $ 4.1 billion for the year ending November – if analysts are to be believed.
But 2021 is just few months away, and thoughtful business strategies can help the company going into next year.
The company has, reportedly, started seeking to renegotiate leases with landlords. In fact much before the coronavirus crisis started, Levi’s was looking at getting new leases over the next 5 to 10 years, which has now been pushed up as retailers exit prime locations.
There are now plans to open more branded stores, which not many are even thinking of in these tough times.
Notably, 92 per cent of its stores, across the world, have been reopened; however, the company, which is known for its world-renowned denim Levi’s, plans to close stores again at places where cases have surged again.
The firm has also made it distinct that it intends to pick up more real estate as record number of bankruptcies continues to dominate the retail industry.
Renegotiation with landlords, launch of new stores, picking up more real estate and continual focus on maintaining profitable relations with its wholesale partners have at least made one thing clear that this company has decided to fight the pandemic hard and win the race.
Though some higher end and expensive jeans of Levi’s are made in the US, many are manufactured overseas in countries like India, Vietnam, Sri Lanka and Indonesia.