David’s Bridal tries to get its groove back
A year after Chapter 11, retailer reinvents itself
USA’s largest wedding retailer gives some love to social media
Nearly a year after David’s Bridal filed for bankruptcy protection, the wedding retailer is still waiting for its honeymoon.
Although the chain survived Chapter 11 – a process that has felled many struggling retailers in recent years – the company’s performance in the succeeding months was disappointing partly because of declining foot traffic and negative cash flow.
Now, with a new CEO on board, the nation’s largest wedding retailer is trying to reinvent itself as it heads into its most important period of the year: the months immediately after the traditional rush of engagements during the holidays.
Facing increased digital competition, David’s Bridal is now allowing store-bought returns on wedding dresses for the first time, selling larger sizes, overhauling its marketing and harmonizing its online and store promotions.
The strategy is based on eliminating “friction points” with consumers, including “confusing and conflicting” pricing and ordering policies, said James Marcum, who was appointed CEO in June, in an interview with USA TODAY.
“I do think David’s for a while lost its North Star,” said Marcum, a retail veteran who most recently served as senior operating partner of privateequity firm Apollo Global Management.
For example, he said, the company’s website was shipping wedding dresses immediately after they were purchased, while in-store purchases took much longer to arrive. The website would offer sales that weren’t offered in stores. Store purchases were
“I do think David’s for a while lost its North Star.”
James Marcum David’s Bridal CEO
considered final, but online sales could be returned.
“We’ve moved very quickly to change those policies,” Marcum said. Deliveries of dresses bought in stores will be sped up, and online and offline prices will be matched.
Speed is of the essence. The company’s operating performance in the four months after emerging from bankruptcy in January was “significantly weaker than anticipated,” S&P Global Ratings said in a report in May.
The ratings agency downgraded David’s credit rating in the same report from B- to CCC+ with a negative outlook.
“The negative outlook reflects our view that David’s Bridal is at elevated risk of failure to service its debt obligations in the long term as we expect poor customer traffic will pressure operating performance and lead to added volatility,” S&P reported at the time.
Marcum declined to discuss David’s Bridal’s financial position since the company is privately held, but he said he’s comfortable with its current mix of about 300 stores. While “continual refinements and relocations” are possible since most of the leases are up for renewal within five years, he said the “majority” of David’s Bridal stores are profitable.
Digital competition ramps up
Digital competition is among the key obstacles David’s Bridal is facing.
Brides and wedding parties are increasingly buying wedding gowns and bridesmaid dresses online, particularly from nimble start-ups that tailor their focus to niche audiences.
At start-up Birdy Grey, for instance, every bridesmaid dress is $99, and customers choose from a curated mix. Cofounded by best friends and former bridesmaids Grace Lee and Monica Ashauer, Birdy Grey offers free returns and appeals to customers through digital marketing on social media such as Instagram.
What David’s Bridal lacks, they said, is the perception of authenticity.
“What’s helped us grow in a big way in the last few years is the authenticity of our story,” said Lee, who serves as CEO of Birdy Grey. “Our customers know us and that authenticity leads to brand loyalty.” Lee said that as former bridesmaids themselves, the founders have a special connection with their customers and understand what they’re looking for.
Ashauer said that winning over millennial brides, who are the No. 1 customer for the industry, requires understanding that they “actually prefer to shop online.”
“To the extent that we’re digitally native, we’re the anti-David’s Bridal in that sense,” she said. “I feel like David’s Bridal has been glacially in decline for the last 20 years.”
The preference to shop online includes brides such as Gabby Bowling, a Morehead State University student in Kentucky, who got married in August. She bought her dress for $157 in the spring from David’s Bridal’s website.
“I didn’t really have time to go shopping for one,” she said. “I was like, if it doesn’t fit and I don’t really like it ... I can definitely send it back.”
Ultimately, she was thrilled with the outcome.
Turning to social media
To appeal to youthful buyers such as Bowling, who did wedding research on Pinterest, David’s Bridal is reworking its marketing to emphasize social media.
David’s Bridal used to spend about half of its marketing budget on traditional marketing initiatives, including TV and radio. Now, it has moved all of it into digital platforms, Marcum said.
For Bridal Fashion Week in New York this month, the retailer didn’t use traditional models in its events or promotional materials. Instead, it featured real brides who double as online influencers.
“We used real brides who were all either getting married or were about to get married, who are going through or have gone through the process, who have different looks to them – different race, ethnicity, sizes – because that’s what resonates with our customer, instead of employing models who all look the same and do not feel relatable,” said Callie Canfield Worthington, senior director of communications for David’s Bridal.
Marcum said a similarly “scrappy” and authentic feel will permeate all of the company’s marketing going forward.
“We want to become relevant to today’s generation, and that’s where she’s getting inspiration,” Marcum said.
That mentality needs to permeate the company’s physical presence, as well, said Michael Brown, a partner at A.T. Kearney, who has studied the future of shopping centers.
“Consumers don’t just want to come into a special location like that and shop. They want to have an experience,” he said. “They want to have an Instagrammable moment that they can post online for their wedding party and friends and family to see.”
As a result, the company needs to tailor its store experience to emphasize the “emotional and celebrated experience,” of making customers feel comfortable and welcome, Brown said.
To appeal to everyone, David’s Bridal has added more larger dresses. The company now carries additional options in dresses up to size 30. Prices typically range from $300 to $800 but some range up to $2,000.
Bowling, the Kentucky bride, said it’s smart for David’s Bridal to widen its scope.
“Not everybody is shaped like a tall, thin model,” she said.