From the top down
Mason’s plan for success started at the top with the reorganization of the management team.
“We restructured organizationally,” Mason says. “We were able to take some of the people who had made the company great and get them in the right positions. We added, too. We brought in some new people and changed the organizational structure to reflect the best of both of the inside and outside.”
Shortly after Mason’s arrival, Tuesday Morning appointed as chief operating officer/executive vice president Mike Marchetti, who is responsible for distribution, computer and communication systems, and loss prevention. He also helped Mason address the company’s sticky distribution issues as they brought in new buyers to hunt down merchandise.
“I’ve learned that you hire good people you can trust,” Mason says. “You keep in touch, but stay out of the way.”
After reorganizing the management team, Mason tackled the distribution of merchandise.
“First of all, we closed 16 regional warehouses,” Mason says. “We had a lot of inventory sitting in warehouses waiting to go to different regions and stores. We really didn’t need those warehouses, and we lost control of those warehouses. We closed those distribution centers. We expanded our existing facility in Dallas, and that gave us much greater control over our inventory. We improved our systems, our information systems.”
Tuesday Morning purchased new computers and software for the distribution center to help track what was coming into and going out of the warehouse to keep better tabs on the merchandise. It also replaced warehouse distribution and sorting equipment.
“We got the inventory in line with reasonable levels,” Mason says.
Mason wanted to update Tuesday Morning’s image through television advertisements and hired a new agency to help it. The company hired Lauren Bacall to serve as its spokeswoman three years ago.
“I can’t think of a classier woman than Lauren Bacall,” Mason says. “She really speaks well for us and speaks to the brand. Sometimes celebrities can be iffy and have checkered backgrounds. Lauren Bacall fit our needs very well. She represented a fine taste level. Since she was a shopper, she loved Tuesday Morning. She loves our product.”
It’s hard to say if the ads have directly led to increases in sales, but Mason thinks they are at least partially responsible for the company’s growth.
“It has given us greater visibility as the value provider that we are,” Mason says. “It has reinforced our message of being a great place to find first quality brand names at fantastic prices.”
And it’s helped the company reach customers who perhaps had never heard of the stores or weren’t sure what they offered, says Mason.
Mason also uses technology to reach its customers more effectively. Tuesday Morning notifies most customers about upcoming sales via a mailed flyer, capturing addresses at the cash register for future mailings. Some 7.5 million shoppers have signed up.
“We don’t sell that list,” Mason says. “We hold it close to our heart. We take care of our customers by giving them notification of some of the more fantastic buys we find throughout the world.”
Mason says about 10 percent of those 7.5 million people receive e-mail notification of sales, called eTreasures, something she started for the company. Those customers access an online catalog that is essentially the mailed flyer posted on a Web site for their perusal, with daily new arrivals. The company doesn’t sell anything over the Internet.
