In a significant development within the world of retail, Tilly’s Inc., a well-known niche surf and skate apparel retailer, has appointed Hezy Shaked as its new CEO. Shaked, who co-founded the company over four decades ago, has a deep emotional investment in Tilly’s success. Having served as the company’s interim president and CEO since January, he effectively takes on the full-time leadership role, marking a new chapter in the retail giant’s journey.
Tilly’s ranks No. 513 on Digital Commerce 360’s Top 1000, a prestigious database that highlights North America’s largest online retailers. The company is categorized under Apparel & Accessories, reflecting its extensive product offerings. According to projections from Digital Commerce 360, Tilly’s online sales are expected to reach approximately $140 million in 2024. This figure showcases the retailer’s continued traction in the highly competitive e-commerce landscape.
Hezy Shaked’s connection with Tilly’s goes beyond mere numbers and charts. In a released statement, he emphasized, “As the co-founder of this 42-year-old company, there is no one who cares about it more deeply than I do.” This commitment is pivotal as Tilly’s faces challenges that many retailers encounter today. The willingness to innovate while preserving the core values of the brand can be seen as an edge in a fluctuating market.
Headquartered in Irvine, California, Tilly’s operates 247 stores across 33 states, alongside its comprehensive online presence. The brand has made a name for itself by providing immersive shopping experiences for its customers, fire-bolstered by a focus on mobile capabilities. In an age where smartphones dominate the shopping experience, Tilly’s early adaptation cultivates a loyal customer base.
Tilly’s diverse product range includes not just clothing but also shoes, backpacks, and accessories, highlighting the brand’s commitment to meeting a wide array of customer needs. Additionally, the company’s sustainability initiatives—including the use of recycled materials and the introduction of its Restored by Tilly’s label—illustrate its awareness of contemporary consumer concerns. Since its launch in 2021, this label has extended the life of over 8,000 garments, showcasing Tilly’s commitment to environmental responsibility.
Shaked takes the helm after the retirement of Ed Thomas, who led the brand since 2015. Under Thomas’s stewardship, Tilly’s expanded its footprint while adjusting to the changing retail landscape. Shaked’s background at Tilly’s also includes previous leadership roles, providing him with the experience necessary to guide the company through its current challenges.
In the most recent quarter ending on August 3, Tilly’s reported total net sales of $162.9 million, reflecting a 1.8% increase compared to the same period last year. However, the decline of 7.8% in total comparable net sales, including both e-commerce and brick-and-mortar stores, reveals the struggles faced by Tilly’s and the retail environment as a whole. Shaked projects confidence in Tilly’s strategic adjustments, particularly highlighting enhanced product margins and refocused marketing efforts. He stated, “While the macro environment remains challenging for our customer demographic, we believe that our new pricing strategies are gaining traction.”
The encouraging news of positive comparable sales in fiscal August 2023, marking the first month of growth since February 2022, demonstrates a potential turnaround in performance. This transition is crucial as Tilly’s aims to re-establish its digital footing and engage with customers who are increasingly discerning about where they spend their money.
With Shaked at the helm, Tilly’s is well-positioned to continue its legacy while adapting to new retail challenges. His strong emotional investment combined with previous experience offers a formidable leadership approach. For a retailer with such a significant presence in the niche market, these factors will play a crucial role in navigating the future.
As Tilly’s pursues growth through its extensive product line, innovative marketing strategies, and sustainability initiatives, it stands at an exciting crossroads. Shaked’s leadership reinforces the notion that a deep understanding of the brand can catalyze a positive shift toward recovery and growth.
With the evolving landscape of e-commerce and changing consumer preferences, Tilly’s commitment to quality, innovation, and sustainability will be essential as the brand writes its next chapter.