Hallenstein Glasson boss to step down

We need to be equal to any international retailer to be able to compete. Graeme Popplewell, CEO Hallenstein Glasson

Hallenstein Glasson chief executive Graeme Popplewell will step down from the day- to- day running of the clothing retailer at the end of the year, after five years at the helm.

Popplewell will retire as CEO, while retaining a seat on the board, the Auckland- based company said.

Popplewell took over the top job in February 2011, having first joined Hallenstein Bros 45 years ago.

He has been on the board of Hallenstein since 1985, overseeing its merger with Glasson that year and has seen a trebling of its store footprint and expansion across the Tasman.

“The past five years have seen an unprecedented change in retail with the explosion of e- commerce and the globalisation of so many brands,” Popplewell said. “It’s been intense and we’ve had to reinvent the busi- ness to successfully meet the changing market.”

Retailers have borne the brunt of changing consumer behaviour as the rise of online shopping undermined traditional “bricks and mortar” stores, leading to several high- profile failures including Pumpkin Patch and Dick Smith Electronics.

Those in the rag trade have felt it acutely; consumer prices for clothing have shrunk 1.4 per cent since 2011 when Popplewell took over the reins of Hallenstein Glasson, while the value of annual sales was up 2.8 per cent, indicating margins have been squeezed through that period.

Hallenstein Glasson’s shares have fallen to $ 3.06, from $ 3.83 when Popplewell was appointed, having peaked at $ 5.85 in April 2013.

Popplewell expects the next five years to bring “major technological advances”, with changing customer demands.

“We need to be equal to any international retailer to be able to compete,” he said. “It’s not just about one element — it’s everything — product, marketing the stores and finding the right people to lead your brands.”

Hallenstein Glasson’s e- commerce offering was expanding at an annual 30 per cent pace, and “becoming a significant part of the business”.

The retailer reported a 21 per cent drop in profit to $ 13.7 million on a 0.9 per cent increase in sales for the 2016 financial year.