Avon has announced some ‘significant steps’ in its Open Up Avon strategy, which is designed to return the company to growth.
The company is pursuing a ‘structural reset’ of its inventory process, which involves a 15 percent reduction in inventory levels, a 25 percent drop in Stock Keeping Units and a 10 percent cut in its global headcount.
“Core to our ‘Open Up’ Avon strategy is to have simpler, leaner operations, and for our infrastructure and mindset to reflect Avon’s reality. The initiatives announced today all advance these objectives,” said Jan Zijderveld, CEO of Avon. “This reset is an opportunity for us to sharpen our portfolio and concentrate on products that are important and relevant to our customer. This represents an opportunity not just for Avon, but for Her to accelerate her earnings through a more focused portfolio, experience better service, and deliver high quality, modern products she can be proud of.”
The actions are expected to be substantially completed by the end of the year.