Aldo Executive Jonathan Frankel Talks Changes at Sperry, Embracing Evolution at FN Summit
After the pandemic took a hit to Aldo’s core retail business, the company made bold moves to innovate and diversify its operating model.
“There’s an expression: never waste a good crisis,” Jonathan Frankel, president of Aldo Product Services at Aldo Group, said at Tuesday’s FN Summit in New York City. “So we made the decision to restructure our retail division in the company. This was probably one of the hardest moments for us, especially since as a retailer you tend to define yourself by how many doors you have or how many employees you have.”
“When you go through a moment of restructuring like this, it can be a challenge,” Frankel added. “But it was for all sorts of good reasons. It allowed us to double down on our e-commerce platform and our business. It allowed us to double down on our international expansion, really make sure that we invest in sourcing and wholesale.”
Now, the exec said that Aldo Group employees around 5,000 associates across over 100 countries and operates approximately 1,500 stores.
Along with this restructure came Aldo Group’s entrance into licensing through the division that Frankel leads – Aldo Product Services. “With this new division, we had to learn how to work better with other companies, support our retail partners and play the long game. If you want to go far, you have to do it together.”
Now, the company boasts a strong roster of brand’s it owns the footwear license for through deals with Authentic Brands Group. These include Brooks Brothers, Hunter, Roxy, Sperry and Ted Baker.
During Tuesday’s presentation, Frankel dived a bit deeper into what the company is working on at Sperry, Aldo Group’s newest licensing addition.
“It can be intimidating to work with a brand that has such tenure and such history in the market because you don’t want to screw it up,” the executive said. “So, what we did was go back to the basics, making sure that the foundational aspect of the business makes sense operationally.”
Frankel added that the company doubled down on product with a focus on core evergreen styles as well as partnering with the right collaborators.
“It’s about having the right product at the right price at the right place and at the right time. We also invested in a new direction that has more of a youthful feel, but also remains true to the brand’s history, as well as launching a new e-commerce site for the brand.”
But ultimately, Frankel credits Aldo’s success to embracing change. “At the end of the day, you just have to enjoy and embrace the chaos and change along the way,” he added.