Update: Lagging Sales Prompt Layoffs at Lillian Vernon

Share this content:
Lillian Vernon became the latest victim of a slowing economy as the cataloger slashed its work force by 12 percent last week, laying off 40 people companywide.

The announcement comes after decreased consumer spending and a slowing economy resulted in a sales shortfall. The layoffs are part of the company's restructuring plan to streamline operations, control costs and reduce operating expenses, said David Hochberg, vice president of public affairs at Lillian Vernon, Rye, NY.

Lillian Vernon will consolidate its Las Vegas call center into its primary call center, located at its national distribution center in Virginia Beach, VA. In addition, other operating expenses and discretionary spending will be reduced in response to the downturn in consumer confidence, Hochberg said.

The cataloger made the announcement two weeks after women's apparel cataloger Coldwater Creek, Sandpoint, ID, announced an 8 percent staff reduction in response to lackluster early spring sales.

Coldwater Creek's decision followed the downturn in consumer spending, which caused the cataloger to revise its expectations.

"Following our robust sales performance over the last 12 months, we entered the important January-February spring selling season with anticipation of continued strong sales activity and staffed our call centers and distribution centers accordingly," said Georgia Shonk-Simmons, Coldwater Creek's CEO. "Quite simply, those early spring sales did not happen this year, and we are adjusting our staff size to a more efficient base to reflect the change in full-price sales."

The staff reductions affected 45 to 55 people at facilities in Sandpoint, ID; and Coeur d'Alene, ID; and Parkersburg, WV, bringing the staff to 1,930 people.


Next Article in Multichannel Marketing

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above