Dive Brief:
- Levi Strauss and Co. is investing in the customer experience, both in stores and online, to help the company differentiate itself and become primarily a retailer rather than a wholesaler, executives said Wednesday on a Q1 2024 earnings call.
- The company’s e-commerce sales rose 12% during the quarter, which was “a direct result of the investments we've made to enhance the consumer experience, including improved search, navigation and filtering capabilities,” President and CEO Michelle Gass said during the call.
- Levi’s is also aiming to create a standout in-store experience by encouraging associates to help customers find complementary products and adding unique services to its flagship stores, such as dedicated tailoring shops.
Dive Insight:
Levi’s is moving away from its history as a wholesaler to become a “DTC first” company to create a foundation for sustainable growth, according to Gass. Customer experience investments are a fundamental part of this transformation.
The CX push includes improving the basics of a satisfying store experience, like always ensuring the most popular items are in stock, Gass said. Levi’s has added new systems and tools to help workers ensure they always have enough of the most popular products to meet demand.
This strategy mirrors efforts being made by other major retailers, including Target and Walmart, to eliminate the frustration of visiting a store for a particular item and leaving empty handed.
Putting an emphasis on upselling and restocking is part of an overall push to generate “innovation and newness” in stores, according to Gass.
However, the changes require thoughtful staffing. Levi’s cut some store management positions to help manage costs earlier this year and is now working to ensure it has the right amount of staff throughout the day to assist customers, Gass said.
Levi’s direct-to-consumer push will also be supported by unique experiences at new headline stores. The company’s latest flagship location, which opened last month in Kyoto, Japan, features a dedicated tailoring shop with alteration, restoration and customization services.
