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Coldwater Creek slashes advertising, heads back to heritage

MediaPost Publications, 3/12/08

Abstract:

Coldwater Creek, the clothing company aimed at free-spirited baby boomer women, is having something of a midlife crisis.

Of course, the Sandpoint, Idaho-based retailer has other problems. First, it's confronting the same ugly set of economic realties that is giving all retailers trouble. Second, its category is in a bit of a meltdown, with double-digit sales declines. Still, admits the CEO, the company's real problem is that the brand has lost its way, "and it's become part of the circle of sameness."

As a result, Daniel Griesemer, president/CEO, told investors at the Bank of American 2008 Consumer Conference, the company will reduce its advertising for the year by 70 percent, and will drastically scale back other marketing efforts, including cutting its catalog circulation by 20 percent and ending the use of $25-off coupons that it has come to rely on in its ads.

Instead, he says, the company will focus on its clothes. "We need to connect our product back to our brand essence, and restore the emotional connection. We have lost some of that in the last year," he says. "The spirit of the brand — and what sets it apart from such competitors as Chico's and Talbot's — is its Western spirit.

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