Over the past few years, Eastern Mountain Sports has been described as “lacking oomph,” or “aimless” without a CEO or GMM, but the company still produced respectable results with an estimated $180 million in sales in 2003.
Late last year, Will Manzer came on-board as the companys new CEO with a single goal in mind add some excitement to EMS. To do this Manzer organized a select group of the EMS management team, found a private equity partner in J.H. Whitney, and decided to buy the company from American Retail Group.
“In fact I came on board with this very goal in mind this was spelled out with ARG prior to my coming on board. Actually we had the intention to do this a year prior to my joining the company,” Manzer told SEWs sister publication, The B.O.S.S. Report.
Details of the transaction were not made public, but Manzer said that management now owns a “significant” percentage of the company while Whitney has the majority interest. Representatives from American Retail Group were not available for comment.
Manzer has a very different vision for EMS than the current companys image portrays. Scott Barrett, EMS Chief Marketing Officer, told BOSS that the new EMS stores will all be in the 7500 square foot range and offer a much more interactive experience. Flat Screen TVs and sound systems will offer a “seamless integration” between the brick and mortar stores, the on-line store and the planned 188 page “cata-zine.” EMS will also be focusing on expanding its Web presence. Management sees Internet sales representing 12% to 13% of total sales in the next two to three years.
The number of brands sold at EMS will also be reduced. Pete Gilmore, VP and GMM at EMS told BOSS that the company will keep many of the “core outdoor brands”. Filling much of the floor space opened up by the reduced brand count will be the EMS brand, and Manzer is making a strong point of separating the EMS brand from private label. “We are not doing private label anymore,” he said. “Now, its called the EMS Brand. No one at the company is allowed to say private label.”
Manzer plans on taking the EMS brand up-market and position it as a premium brand to complement the national brands on the floor. He also sees significant potential in licensing opportunities and possible wholesale distribution down the road.
EMS will also be moving away from the promotional pricing that has plagued them in the past. “There was a running joke that EMS stood for Every Months a Sale,” said Manzer. “We are abandoning that image.”