This week, a look at how the fluctuations in the job market are affecting fashion executives’ hiring strategies. Also, inside Mark Cross’ next phase and highlights from Glossy’s fashion coverage.
The status of the labor market last month has floored many economists who expected fewer new jobs would be added to the market in March. More than 300,000 new jobs were added in March, far exceeding initial projections of 205,000 jobs and topping the 275,000 jobs added in February.
Companies across industries are taking advantage of the strong labor market and working to fill out their teams. But as Glossy spoke to fashion brand executives over the last week, it became clear that finding good talent is an increasingly difficult task. The executives agreed that we’re in an employer’s market, but they also said that sorting through the huge number of job applicants and picking out worthwhile candidates is more challenging than ever.
“The labor market has had some wild swings over the last year,” said Andie Swim founder Melanie Travis. “There was a period in 2022 where you had to aggressively poach someone if you wanted them and offer them all these exorbitant perks because they had so many options. The pendulum has swung completely. Probably by the end of this call, I will have three people reaching out asking about a job. The inbound is crazy.”
“It went from an employee’s market to an employer’s market,” Travis said. “The era of quiet quitting is over.”
Footwear designer Sarah Flint concurred, noting that 2021 was a particularly difficult time for hiring.
“It was horrible to hire then,” she said. “Employees were getting 20% more in salary every time they switched jobs. It was really expensive. But now, jobs are more scarce and the leverage is more on the employer’s side.”
But just because there are more job seekers for brands to pick from doesn’t necessarily mean the process is easier. The most coveted talent tends to have higher expectations, with many specifically seeking remote work. Flint said her team works entirely remotely, which has been the No. 1 thing potential recruits ask about. She said her team of 16 employees has toyed with the idea of going back into an office at least part-time but, so far, has not reached a consensus. The fact that she doesn’t have to pay rent for an office and remote work is in demand means that the company’s WFH setup is likely here to stay.
On the flip side, Carol Altieri, COO of Bob’s Watches, said her company’s five-day-a-week in-office requirement has made it tough to recruit good talent. In addition, Bob’s Watches recently relocated to Naples, Florida, from Newport Beach, California, and the new location has created the similar problem of finding good local talent willing to commute to Naples.
“The commute and work-from-home [expectations] are probably our biggest challenges,” Altieri said. “If we were a little further north, it might be easier. I managed hiring for the first 10 years of my 13 years at Bob’s Watches; thankfully, we have a new director of HR who handles that now.”
Aside from potential employees expecting perks like remote work options, Altieri said the biggest hiring problem is simply sorting through the vast number of barely relevant resumés she receives. Because people are desperate for jobs, they’re sending in applications even if they don’t have relevant experience, she said, adding to the complexity of finding good applicants among them.
“I don’t even really want someone with watch experience,” Altieri said about hiring sales associates to staff her stores. “I’d rather they have sales experience, and I’ll teach them watches, instead of having watch experience but needing to be taught sales.”
Some executives who are hiring are beginning to look for AI-powered solutions to the glut of resumés coming in. Skims has begun working with a company called Dweet that uses AI both to develop job postings and to sort through the 40,000 jobseekers using its site to serve them to fitting employers. But the technology is new and still subject to the implicit biases both of hiring practices and human-created algorithms, meaning it’s not yet a fix-all solution for brands just yet.
Until better recruiting and hiring technologies are in place, Altieri said there’s still one tried-and-true solution she’s found for finding good talent: “We steal good people from other companies,” she said.
Mark Cross relaunches
American luxury brand Mark Cross introduced its second big relaunch in three years this week. After former CEO Ulrik Garde Due left the brand in late 2022, new leaders Gayle Dizon, CEO, and Sean Spellman, chief creative officer, are seeking to revitalize the brand.
To do that, the company’s executives outlined a plan, announced on Tuesday, that involves simplifying the product catalog and bringing back a number of discontinued styles from Mark Cross’s more than 150 years of history. Another major focus will be a reimagined version of the brand’s men’s line. When men’s was first introduced in 2021, the goal was to grow it to 50% of Mark Cross’s business by 2024. It has not yet reached that level due to slow sales on that side of the business.
According to Dizon, another goal is to make Mark Cross into a luxury brand known for more than just leather goods. A flagship store opening is being planned, likely in New York or London, and through 2025 Mark Cross will roll out new versions of designs like the Grace Box – a handbag style famously used by Grace Kelley in the Alfred Hitchcock film “Rear Window.” Until the flagship opens, the retail plan will focus on gallery-style pop-ups in both the U.S. and international markets. Mark Cross’s previous flagship store in New York City closed early last year.
“We have long-term goals with strong intentions to navigate the intersection of heritage and innovation with this relaunch of Mark Cross,” Dizon said. “Our aim is to establish Mark Cross as … an aspirational lifestyle brand that defines American luxury.”
Stat of the week
According to data provided by e-commerce tech company Bloomreach, which works with brands like Pretty Little Thing, Boden and Revolve, luxury e-commerce revenue fell by 2.6% and conversion rates for luxury e-commerce fell by 4.4% in March 2024. This suggests that despite the gains made by major luxury conglomerates like LVMH and Kering in the last quarter, 2023’s luxury e-commerce slump remains.
Executive moves
Acne Studios brought in Hendrik Bitterschulte, former CFO of luxury pen and watch brand Montblanc, as its new CFO.
Nordstrom announced Lori Garten as its new evp and gmm for its Nordstrom Rack division, a growing and important part of the business.
John Lewis Partnership, parent company of the British department store John Lewis & Partners, hired a new chairman, Jason Tarry. Tarry worked at the British supermarket chain Tesco for over 30 years before taking the new role.
Inside Glossy’s coverage
Amid manufacturing innovations, these fashion brands are prioritizing traditional craftsmanship.
One-on-one clienteling is still a brand’s best friend.
For creators and former bloggers, Substack offers a renaissance — and a new revenue stream.
Other news to know
Allbirds’ continuously plummeting stock puts it at risk of delisting.
Corporate bankruptcies were way up last month.
Coach is suing Gap over a trademark dispute.
