CEO who led expansion at Eddie Bauer is retiring

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Rick Fersch, who as Eddie Bauer's president and chief executive led the retail chain as it expanded internationally and diversified beyond its Northwest-inspired outerwear, announced yesterday that he is retiring effective immediately.

Fersch, 52, had been president of the Redmond-based apparel and home-furnishings retailer since 1993, and CEO since 1997. Under his watch, Eddie Bauer grew into a worldwide brand with $1.6 billion in annual sales.

But the company has been struggling, with sales down 20 percent throughout the fall months at stores open longer than a year. Eddie Bauer's parent company, the Downers Grove, Ill.-based Spiegel Group, warned last month that fourth-quarter profit will be lower than expected, citing declining business at its Eddie Bauer, Newport News and Spiegel divisions.

Fersch was unavailable for comment yesterday, but Spiegel spokeswoman Debbie Koopman said his retirement "was a personal decision made by Rick. The performance of the company was one of many factors that entered into Rick's decision."

Spiegel will conduct a national search to find a replacement for Fersch, who will continue to help run day-to-day operations on an interim basis. Martin Zaepfel, Spiegel's president, vice chairman and CEO, will oversee all planning and strategic decisions.

In an announcement issued by Spiegel, Fersch said he'll pursue consulting and community endeavors. Fersch and his wife, Patti, ran the United Way of King County fund-raising drive in 1999-2000.

His retirement comes during a rocky period for the company and the retail industry. Apparel retailers and department stores are losing business to discount chains as price-conscious shoppers look for bargains during the recession. Warmer-than-usual fall weather across the United States also brought down demand for jackets and sweaters.

Against this already challenging backdrop, Eddie Bauer launched an overhaul of its fashion mix in September, emphasizing a "classic casual" look for adults between age 35 and 55. While Eddie Bauer has long been known for its outerwear, the "classic casual" approach is aimed at the work week and a night on the town, as well as weekend activities.

Customers have been slow to respond to the new offerings. Same-store sales fell 21 percent in September, 19 percent in October and 21 percent in November. Spiegel will release December sales figures on Thursday.

Eric Beder, retail analyst for Ladenburg Thalmann & Co. in New York, said Eddie Bauer has made strides with its new look. About a dozen stores have been renovated with a cleaner, easier-to-navigate feel, and Fersch has said those stores are running double-digit sales increases over last year.

"There have been some good positives coming out of the new turnaround," Beder said. "I think we're kind of at the point where it's time to get some fresh eyes on it. The key will be who they can bring in."

Robert Spector, a Seattle-based author and retail expert who wrote the book "The Legend of Eddie Bauer," said Fersch's upbeat and enthusiastic persona seemed to resonate with Eddie Bauer's employees.

"Rick had this wonderful energy, and I think people responded to that," Spector said. "What has affected Eddie Bauer's performance has affected a lot of retailers today who are trying to differentiate themselves from the competition without giving huge discounts."

Fersch, who joined Eddie Bauer in 1988 as vice president of retail stores, said last fall that he was confident the company would rebound despite its recent struggles.

"You name any major retail company, you can go for a ride for a certain window of time, and then it doesn't work," Fersch said during a November interview. "We've had a lot of great growth, we've had our up years and our down years.

"We have a lot of hard work still. This is a building process. We're building a brand. And we've got a great brand; we've got a lot to hold on to."

Zaepfel credited Fersch with helping raise annual sales from $900 million to $1.6 billion and said he was instrumental in helping Eddie Bauer go international. While Fersch was president, the company branched out into Japan and Germany. The company now runs 575 stores and outlets in the United States and Canada, with another 47 joint-venture stores in Japan and Germany.

Several other management changes accompanied Fersch's retirement. Steve Newman, president of the apparel division, will now oversee creative services and sourcing. The company also named two new vice presidents: Mark Staudinger in marketing, and Paul Keur in sourcing and production.

Jake Batsell can be reached at 206-464-2718 or jbatsell@seattletimes.com.