Source: PacSun
Will One CEO Work Better Than Two For PacSun?
PacSun last week said it was ending its successful co-CEO strategy and that it would go the traditional route of having one chief executive lead the company starting on June 15.
Brie Olson, named co-CEO in March, will take the helm at PacSun. Mike Relich, her co-CEO, will retire and transition to a new role as vice chairman of the retailer’s board of directors.
“I am excited to continue this adventure as the CEO of PacSun, which is a cultural force on the forefront of fashion, music and sports. It is a privilege to work beside our talented team to bring the best brands, curated products and most innovative collaborations to our community of passionate young people around the world. I would like to thank Mike for his partnership and look forward to continuing to collaborate with him on the board,” said Ms. Olson in a statement.
Ms. Olson, in her co-CEO role, paired her design and marketing expertise with Mr. Relich’s operations, supply chain and technology acumen.
PacSun has credited her with the launch of the curated PS Reserve online platform and store-within-a-store concept, opening new stores and “establishing a new feedback channel” between frontline staff and the chain’s buying and design teams.
Ms. Olson began her PacSun career in 2006 as senior design director (women’s) and worked her way up the ladder to roles including chief brand officer, chief merchandising officer and senior vice president of merchandising and design.
She was promoted to president in May 2021 and joined the company’s board.
She has overseen “the design and execution of multiple partnerships” at PacSun, including Emma Chamberlain, Formula 1, The Metropolitan Museum of Art and Storm Reid. Ms. Olson was behind the debut of the chain’s first gender-neutral collection, Collection Theory, and led the company’s move into children’s clothing with PacSun Kids.
She has also driven PacSun’s metaverse marketing efforts on Roblox and its relationship with virtual influencer Miquela. Ms. Olson gained outside recognition for her brand and marketing efforts in 2022, being named to “top” lists by AdAge and Glossy.
Russell Bower will continue to serve as chief financial officer at PacSun. He will also become the retailer’s chief operations officer, putting him in an expanded role in charge of finance, information technology and operations.
Discussion Questions
DISCUSSION QUESTIONS: Do you expect PacSun to transition smoothly from its co-CEO framework to a single leader? Is the chain taking the proper steps to ensure its information technology and operational strengths remain strengths going forward?
Poll
Loading …BrainTrust
Gary Sankary
Retail Industry Strategy, Esri
Michael Zakkour
Founder - 5 New Digital &International Marketing Lead at UNILEVER
Ms. Olson hs the opportunity to surround herself with executives capable of filling whatever voids Mr. Relich may leave behind. This is done everyday in retail and other industries, therefore, there is little reason it would not work for PacSun.
Co- Ceo’s is a tough act to pull off, but when it works, it works really well, typically blending a merchant with an operationally focused partner. That said Retail (or any organization frankly) works best with an empowered team, with a great team leader at the helm. So moving to a single CEO framework shouldn’t pose issues, if the team is gels working with the leader.
Brie Olson going solo makes sense. The co-CEO team was complementary, with Olson coming up via a design and marketing path and Relich through operations and tech. I believe their co-CEO strategy is a model for others. It allowed for a smooth transition to power and profitability instead of a state of home office turmoil and turnover. PacSun has done a lot of things well, and they are poised to continue their growth via technology, partnerships, and innovative branding.
This sounds to this outsider like a solid transition plan. Assuming that Co-CEOs share a vision for the company and agree on the company’s direction. Given Ms. Olson’s pedigree coming up the company’s ranks under Mr. Relich’s watch, I suspect she’s well-prepped for her CEO role, and this was all part of the process.
This sounds to this outsider like a solid transition plan. Assuming that Co-CEOs share a vision for the company and agree on the company’s direction. Given Ms. Olson’s pedigree coming up the company’s ranks under Mr. Relich’s watch, I suspect she’s well-prepped for her CEO role, and this was all part of the process.
I never got the Co-CEO thing, with Pac Sun or anyone else for that matter. So, where does the buck stop? Oh, it’s complicated. Anyway, good luck to Brie and all the other “Co’s” out there. Now we know where the buck stops.
I expect that anyone that can handle a co-CEO framework can certainly handle being a single CEO. Ms. Olso has certainly proven capable and knowledgeable. My only concern is Mr. Bower’s expanded role. I don’t believe Operations and Information Technology should report to the CFO. However, PacSun has made a co-CEO role work, so I have a feeling they’ll make this work too.
I expect a smooth transition to the more traditional single CEO approach. It worked for PacSun for awhile, and it can work for other brands who require a lot of dedicated focus in several different areas with leaders playing to their strengths. But ultimately, and now that they’re on more solid footing, an organization needs a sole decision maker to steer the ship in the right direction. Brie has demonstrated she has the skills and vision to maintain their growth and profitability, and her focus on Gen Z and the use of social media and technology will no doubt continue to drive revenue and customers.
Hats off to Ms. Olson and PacSun. There was always the possibility for the co-CEO thing to end badly, but what has emerged is a healthy retailer who looks to be ahead of the curve on many fronts. So hats off to Mr. Relich also. Retailing is a lot more complicated than great product and marketing today, and that elevated the whole operations side of the equation. I always thought the whole co-CEO thing was potentially problematic, but PacSun made it work. The important thing is that the business seems to be hitting on all cylinders and there is now every reason to believe that it will continue to do so.
The transition for PacSun should be seamless since Ms. Olson has been in the CEO role for a while now. I’m sure she learned a great deal from Mr. Relich’s strengths and certainly can still learn from him in his new role as Vice Chairman. She has the corner office now and I’d tell her to surround herself with accomplished executives.
I don’t know of any cases where co-CEOs worked. This may be an exception.
In retrospect, the purpose of this set-up was apparently to support Ms. Olson, an extraordinary merchant and fashion talent in the operation area, where she had little experience. I suspect the transition plan was laid out from the beginning of the co-CEO setup.
I see success in the transition to a normal management structure. Successful CEOs are never experts in everything but have a working knowledge across the functions of the company.
I love to watch companies with two CEO payers. It at times is like watching a dog and cat fight.
And the losers are the customers and the workers.
The short answer is, one head at the top is always better than two. This is probably better for the company.
PacSun has been blessed with great leadership, and I’ll trust Mike Relich’s move to vice chairman of the board. The brand continues to be in good hands.
Yes–assuming they picked the right leader!
If the strategy was so successful, why change the formula? Sorry, somebody had to ask. That asked, it seems that the transition should be a smooth one. It is, in fact, only a semi-transition since a new CEO isn’t being named just expanding her territory.
Two co-CEOs is usually a problematic strategy. Two co-leaders is another story. Way back in 2008, David Thomson wrote a brilliant book called “Blueprint to a Billion” in which he analyzed the similarities of all IPOs at the time that hit the billion dollar mark. There were seven common “essentials” to doing so. Number six was the idea of co-leadership – one focused on the ‘inside’ and one on the ‘outside’. The examples are endless: Yahoo!, Microsoft, Tractor Supply, eBay, Seibel Systems, Starbucks, etc. The key is the inside/outside differentiation, not the assigned title. The direction is based organically on the personality, preference, propensity and passion of each leader. Trying to be what one is not is usually fatal.
Still a good strategy today. Check for a current version of Thomson’s research.
Brie Olsen is a rock star. She is visionary who is embracing the new retail, making immersive and virtual commerce work and 100% gets who her customer is. A great move by a great company.
This should be a smooth transition at PacSun. Ms. Olsen’s strengths in design, branding, and merchandising are an excellent fit for the company’s growth strategy. By adding the duties of the COO to Mr. Bower’s existing CFO role, he will give proper attention to reliable operations. But make no mistake; this CEO move says PacSun’s focus is on growth.
Having worked with most leading retailers and their senior management, I have always been clear. There cannot be more than a single source of power and direction. Yes, you can define hierarchies that make this decision-making process more inclusive and democratic. If a CEO requires more brainstorming power, expertise or advice, close-knit advisory groups can always be formed. However, Co-CEOs would vary in multiple ways despite how much in sync they are. Thus, this looks like a step in the right direction by PacSun.