Say What? Eyebrow-Raising Quotables From Retail CEOs

Barbara Thau

Contributor

Let’s face it, platitudes, boastful dictums and mind numbing, public-relations-fed talking points often tumble from the mouths of retail CEOs.

And it’s not just retail CEOs — clichéd lingo that says little or nothing is the plague of corporate-speak.

By contrast, nuanced insight, frank admissions of failure and straight talk on the challenges of doing business as a retailer these days are harder to come by.

But recently, CEOs have offered up some refreshing moments of candor that have shed light on the leader and the culture of leadership behind a retail chain.

What They Said: Millard ‘Mickey’ Drexler, CEO of J. Crew  

Mickey Drexler can always be counted on for his unfiltered take on things. In his signature Bronx accent, Drexler’s no-holds-barred banter at Financo’sannual seminar, for one, has become an eagerly anticipated highlight of the evening.

J. Crew CEO Millard “Mickey” Drexler.

Every year, the J.C. Crew CEO lets it rip at the boutique investment firm’s January event, which draws a who’s-who of the retail industry. (In 2009, in the thick of the Great Recession, he told Burt Tanksy, then CEO of tony Neiman Marcus, “The world is not about overpriced designer goods anymore.”)

But what’s notable about Drexler is that he’s just as brash about himself and his own business. Take his remarks to Bloomberg Television at the Robin Hood Investors Conference in New York recently about the current state of retail.

When asked about companies like Louis Vuitton who never have to go on sale, Drexler said, “I am so jealous of Louis Vuitton, okay? And that’s a 100, 200-year-old brand that has had high integrity for a couple of hundred years. You might add Chanel into that as the only perhaps other one out there and a few others.”

Drexler also said J. Crew considered expanding into the now-hot athletic apparel market but opted against it. ”Where we thought about being in, was the active professional kind of business, the yoga or the Under Armour kind of business, but we’re not getting in because we don’t have the expertise to do that.”

Why It Matters: Although Drexler dispenses with retail CEO-speak, his frankness is really not about shock value. It’s expressed as exasperation, a call for meaningful talk, which often opens a window into how the business of retailing actually works — or doesn’t work, in many instances. His envy of the no-sale strategy of luxury players such as Louis Vuitton (and how many CEOs would be secure enough to publicly admit to envying a competitor?) is a reminder of the often profit-margin crushing sales and markdown game that most retailers have become beholden to — and have trained shoppers to expect.

And his comment about J.C. Crew opting to forgo the athletic wear category because it’s not a business it knows is an important lesson that retailers often miss: Stick to your core competency and what you do best. Business lore is packed with examples of companies that should have stayed in their lane. RememberMcDonald’s pizza? Probably not.

What They Said: Kevin Mansell, CEO of Kohl’s

Kohl’s has been limping along, posting five consecutive quarters of sales declines that reflect, in part, an overreliance on house brands, too few national brands and excess merchandise cluttering the sales floors.

And while CEOs often admit when their companies underperform, they rarely do so with the kind of candor expressed by CEO Kevin Mansell on Oct. 31, at the company’s first analysts’ meeting in seven years.

After saying Kohl’s can reverse its sales declines and grow revenues by $2 billion by 2017, Mansell also added: “Given that we haven’t produced [positive] comps in the last years, why is this realistic?” said Mansell, reported Women’s Wear Daily. “We feel we have a really good plan to get there. You have a right to be skeptical. We don’t have the results. We can’t turn to last year’s or this spring’s results and say, ‘Believe us.’ We’re taking a more pragmatic and practical approach. We put the leadership team out front. You can hear what [we] have to say and see if it makes sense and see if the financial guy can tie metrics and sales to those plans.”

Why It Matters: Mansell essentially told investors outright, “We totally get it if you don’t believe us until we deliver some tangible results.” It’s a frankness from a CEO of a public company that offers a measure of transparency, manages expectations and ultimately fosters good will in a way that nebulous platitudes about missteps don’t.

Apple CEO Tim Cook. (AP Photo/Jeff Chiu)

What They Said: Tim Cook, CEO of Apple

Tim Cook made headlines for coming out as gay in an essay published in Bloomberg.

“I’m proud to be gay, and I consider being gay among the greatest gifts God has given me,” he said. “Being gay has given me a deeper understanding of what it means to be in the minority and provided a window into the challenges that people in other minority groups deal with every day. It’s made me more empathetic, which has led to a richer life. It’s been tough and uncomfortable at times, but it has given me the confidence to be myself, to follow my own path, and to rise above adversity and bigotry.”

Why It Matters: Rarely does a corporate CEO have an opportunity to elevate the public discourse on important social matters, and serve the greater good. By proudly proclaiming to be a gay man, Tim Cook did just that.

With the statement, he instantly became the first publically gay CEO of a Fortune 500 company, and while the notion that Cook’s sexuality is still even an issue these days is disappointing, his announcement goes a long way in chipping away at bigoted, retrograde notions of LGBT people while affirming their everydayness.

Cook also used the opportunity to champion equality for all minorities who routinely face discrimination, his words imparting an unvarnished humanity.

“At the same time, I believe deeply in the words of Dr. Martin Luther King, who said: ‘Life’s most persistent and urgent question is, ‘What are you doing for others?’ ”I often challenge myself with that question, and I’ve come to realize that my desire for personal privacy has been holding me back from doing something more important. That’s what has led me to today,” Cook said.

From a business perspective, Cooks’ candor only furthers the authenticity of the Apple brand, which implicitly stands for embracing diversity and celebrating individuality.

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