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Eddie Bauer's sales are in free fall. its parent company has been tossed off the Nasdaq, and it's been without a CEO for six months. But the Seattle retailer has yet another reinvention in the works, and industry watchers say there may yet be life in the 82-year-old brand.
The 530-store chain is returning to its outdoorsy roots and trimming back its dress-casual lines, while scaling back its frequent deep discounts, said Martin Zaepfel, president and CEO of Bauer parent company The Spiegel Group Inc., in an interview.
Portland-based Columbia Sportswear, which seems to be thriving in the market Bauer plans to reemphasize, would not comment on the potential for increased competition. A company spokesperson said Columbia is not aware of Eddie Bauer's plans.
The changes now under way follow a three-month brand study of Eddie Bauer conducted by international management consulting firm McKinsey & Co., which has a Seattle office. The study charts Eddie Bauer's return to what a company position paper calls "an authentic, original American lifestyle brand, known for our innovative spirit and a passion for creating a first-rate customer experience."
In stores, this will translate into a return to the company's traditional outerwear offerings, which have all but disappeared in recent years. De-emphasized, Zaepfel said, will be dress-casual clothing for work, which had grown to about half of Eddie Bauer's merchandise. By September, when new apparel lines reach the stores, dress-casual will shrink to 15 percent of the mix.
In its place, washable suede, leather, rainwear...