Brie Olson and Mike Relich, Co-CEOs of Pacsun – Photos: Pacsun
Pacsun to stick with its co-CEO model as one leader prepares to depart
Pacsun last week announced that Brie Olson, president and a member of the retailer’s board of directors, will be appointed co-CEO, effective March 9, replacing Alfred Chang, who is stepping down after 17 years with the company to join one of the company’s brand partners.
Ms. Olson, who was promoted to president in May 2021, has over two decades of retailing experience. She began her career at Pacsun 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.
During her tenure. Ms. Olson has been responsible for overseeing “the design and execution of multiple partnerships” at Pacsun including Emma Chamberlain, Formula 1, The Metropolitan Museum of Art and Storm Reid. She 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 as well as 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.
“Pacsun aims to position our brand right alongside our customers — the cultural pioneers of the future. This means we live at the intersection of all things culture: art, fashion, music and sports,” said Ms. Olson in a statement. “Culture is dynamic, and so Pacsun must be as well — and that is what I love most about being part of this organization. Every day I get to work with the most talented team in the industry as we innovate, break barriers and grow.”
Ms. Olson will pair her design and marketing expertise with the operations, supply chain and technology acumen of co-CEO Mike Relich. Mr. Relish was named co-CEO of Pacsun in May 2021. His experience involved acting as chief operating officer at companies such as PSEB (Pacsun Eddie Bauer) Lucky Brand, Crate & Barrel and Guess?, where he also served as CIO.
Pacun operates about 350 stores and three distribution centers. The chain’s stores, which account for about two-thirds of its total sales, also fulfill about one quarter of online orders, reports Modern Materials Handling.
Discussion Questions
DISCUSSION QUESTIONS: Do you see the Pacsun co-CEO leadership model as something that has uniquely worked for the company or an example for other retailers looking to improve their performance? How does Pacsun compare to its peers in the specialty apparel vertical?
Poll
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I’m not a fan of the co-CEO model as it can create confusion and conflicting visions. That said, it has been done in other organizations and been successful. Every organization is different with unique culture and operating models. In the case of Pacsun, if it works, I’d say stick with it. For them, two-heads are better than one.
Wow. I read this article three times and still haven’t caught my breath. This article sounds like a super star line-up of wonderful retail insights of top of the top players, who apparently are creating new roads and strategies for success. Example for other retailers looking to improve their performance? My advice to retailers: read their book. I know I’m gonna.
My friend Michael Relich is an outstanding leader who is happy with the current arrangement, so it must be working. Two heads are better than one.
A co-CEO model probably has more potential landmines than it does upsides. But it all boils down to the working relationship between the players. I’m sure Ms. Olson and Mr. Relish already have a deep and complementary working relationship, so in this case it doesn’t look problematic. You could even say that the leadership office has simplified as it narrowed from three people down to two.
More importantly, the proof is in the execution. I was in a PacSun yesterday as part of a two day, end-of-the-year mall tour. PacSun looked great. They have managed to stake out an aesthetic and attitude distinctly different from both AEO and Abercrombie & Fitch. The teen customer is well served with a great breadth of product and personalities. They had fresh product nicely presented at the front of the store and minimal prior season inventory at the back of the store. Looked like sound execution to me.
It used to be simple to suggest that a merchant should sit in a retail CEO office. But these days the operational aspects of the business are at least as important as the product development aspects. Sometimes more so. And if that’s best addressed with co-CEOs, so be it.
It’s not a usual model but when the co’s work well together, it’s a powerful one. It allows a so called left brain/right brain work together to create great and efficient customer experiences. I’ve seen it work really well in the past, right down to a shared office for the co’s.
No, a co-CEO model is not a good template for any company to follow. Whenever you divide responsibilities at the top of a leadership team, you expose the team to all of the issues with poor communication, fragmented decision-making, friction-laden perspectives that 2 leaders bring to the team. Historically, it is the key reason that we still embrace a single leadership solution for corporate decision making.