Chico's cuts $11M in marketing expenses

FORT MYERS — Women's retailer Chico's FAS says it plans to decentralize its marketing and digital commerce, a move the company says will save $11 million in marketing expenses this year.

“Disbanding these previously centralized functions will result in a leaner, more simplified structure that better supports the individual brand needs and places the functions closer to the customers, while at the same time, reducing costs and complexity within the company,” says Shelley Broader, president and CEO of Chico's FAS, in a statement.

In addition to the $11 million savings in marketing expenses this year, Chico's says the change will create annualized cost savings of $14 million. “By directly aligning these resources within the brands, we will enable better execution on our customer experience initiative, one of our four areas of focus that we outlined in February to drive results, enhance profitability and increase shareholder value,” Broader says in the statement.