Fossil, the famous brand that makes watches, handbags, wallets, backpacks, sunglasses, and other fashion accessories, has decided to close 50 stores in the United States after recording a 19% drop in global sales during the last quarter. This move is not temporary and, of course, not a coincidence either. They plan to completely restructure the company to adapt to the new shopping habits of users: online shopping.
What is Fossil?
It was founded in 1984 and, although it started as a company focused on retro-style watches, it has evolved over the years by incorporating new technologies, such as smartwatches, and collaborations with well-known brands like Star Wars, Disney, or Minecraft. A fashion milestone that has designed watches for other famous brands like, for example, Michael Kors.
A strategic decision
We’re witnessing how more and more companies are deciding to end in-person retail to dedicate themselves fully to online commerce. Obviously, this decision is not improvised, nor is it a whim. It’s a logical response to a situation the entire retail sector is experiencing fewer sales in physical stores and more online. Maybe because after the COVID-19 pandemic we got used to the ultimate convenience of clicking once and having the purchase appear at home a few hours later.
That’s why Fossil, like other brands, has a clear goal: to reduce costs, simplify operations, and reconnect with the consumer who is no longer driven by the impulse of a shop window. That’s why the company’s plan is to strongly commit to its digital store, simplify operations, and make sure every move they make is meaningful.
What will happen with the catalogue?
Fossil doesn’t just want to sell online: it also wants to renew what it offers. In the coming months, the brand plans to invest more in design and functionality, launching watches and accessories with a more updated look, more focused on a younger audience. Already at the beginning of 2024, it began saying goodbye to its smartwatch line, opting for a much less risky path. That was the first step in its proposed change.
Goodbye smartwatches, hello Minecraft
One of the most surprising twists of this change is that the space once taken up by smartwatches at Fossil will be filled with a partnership with Minecraft, one of the most popular games in the world. With this, they want to reconnect with a younger audience. Instead, the company has chosen to connect again with young people through an alliance with Minecraft, one of the world’s most popular video games. The collection includes watches, wallets, and bracelets with designs inspired by the game’s famous Creepers. A move that aims to strike a nostalgic chord with those who grew up (and still live) in this universe and, along the way, attract new customers from the digital world. For example, they’ve also released a collection with Harry Potter. Who wouldn’t want one of those in their hands?
The future according to its new CEO
Fossil’s newly appointed CEO, Franco Fogliato, has said he fully trusts in the company’s recovery. According to him, the plan is designed to guarantee sustainable and profitable long-term growth. His team arrives with fresh energy and wants to revitalize the brand, but without ever giving up its roots.
Fogliato doesn’t just want to survive, he wants to make Fossil a relevant and competitive name again. And if that means saying goodbye to 50 physical stores to focus on the digital world, it’s clear the company is ready to make tough decisions to make it happen. One door closes, but a digital window opens. Will it be enough to survive in such a fierce market? Time will tell. For now, they don’t want to sit still and wait for time to pass.
— Fossil (@fossil) , 2022 Watch out for Nifflers, the Harry Potter x Fossil collection has finally arrived! #HarryPotterxFossil