CEO of Tuesday Morning Company to Step Down
Tuesday Morning, the off-price retailer known for its home goods, decor, and toys, has undergone significant changes in recent times. In December, Anthony Crudele, Douglas Dossey, W. Paul Jones, and John Lewis joined the board of directors.
This move comes at a critical time for the company, as it grapples with the impact of the COVID-19 pandemic. Last spring's closures wiped out nearly all of Tuesday Morning's revenue, leaving the retailer lacking an online presence. Being largely brick-and-mortar based, the off-price sector was uniquely vulnerable to a pandemic.
Despite these challenges, Tuesday Morning's focus on home goods may provide a cushion against apparel's travails in the COVID-19 era. However, the retailer still lacks the scale and buying power of off-price giants like TJX Cos. and Ross Stores.
Tuesday Morning's CEO, Steven Becker, is leaving his post and board directorship this year. Becker, appointed CEO of Tuesday Morning in 2015, has successfully navigated the company through a challenging year. He has agreed to work as a consultant through Sept. 30 to help with the transition.
The retailer has shuttered roughly 200 stores and raised new capital since entering bankruptcy. Tuesday Morning's sales for the period ending September 30 were down nearly 28% compared to 2019 levels, and the operating losses nearly doubled for the same period.
The search results do not provide information about a new CEO of Tuesday Morning or when such a leadership change might occur. However, it is clear that whoever takes over will likely have to find ways to add more treasures to Tuesday Morning's treasure hunt to lure in customers.
GlobalData analysts have described Tuesday Morning stores as "a jumbled flea market" of available goods. This image, while perhaps colourful, suggests that the retailer may need to streamline its offerings to better compete in the off-price market.
Tuesday Morning could continue facing significant challenges until the wide distribution of a COVID-19 vaccine. Analysts still by and large like off-price's prospects despite the pandemic, but it remains to be seen how Tuesday Morning will fare in this competitive landscape.
Board chair Sherry Smith stated that Becker has successfully navigated the company through a challenging year. The board is now tasked with finding a new leader to guide Tuesday Morning through its next chapter.
