Indoor gardening firm AeroGrow has made a number of changes to its leadership, with the resulting executive lineup geared toward focusing on the company’s direct-to-consumer channels.
Jack J. Walker was named CEO, replacing Jervis (Jerry) Perkins, who has served AeroGrow's CEO since March 2008. Walker has been a director of AeroGrow since February 2006 and chairman of the board since July 2008. He is AeroGrow's largest beneficial shareholder
In addition to concentrating on the company’s direct operations, Walker will also take an active role in raising investment capital for the company’s short-term liquidity requirements, according to a company statement.
Perkins will continue to serve on the AeroGrow's board of directors.
In line with the company’s new focus on direct channels, J. Michael Wolfe has been promoted from VP of operations to COO. Wolfe has also served as the general manager of AeroGrow's direct response division since August 2008.
While at AeroGrow, Wolfe launched the company's first direct response catalog, now mailed to millions of households annually, and took over its Internet division in December 2008. Prior to AeroGrow, Wolfe served as president and COO of Concepts Direct.
According to the company, AeroGrow’s direct response division was largely responsible for recent improvements to the company’s bottom line. During the past year, return on media dollars spent in the company's direct response business more than doubled and the company's database of active buyers surpassed 100,000 names (a growth rate of over 15%).
Additionally, AeroGrow customers have increased their spending in repeat purchases increased by over 20% to nearly $50, according to the company.
"The increased focus on our direct response channels comes as a result of the success we've had in that area, combined with the significant changes we've seen in the retail industry in the U.S.,” said Walker in a statement. “As retailers have struggled to respond to the global economic crisis, they have shifted inventory and sales risks to their suppliers. For smaller companies like AeroGrow, this means the capital base required to do business with large retailers has increased dramatically, as has the overall risk of being a supplier to the retail trade.”
Walker continued, “Conversely, in our direct response business, where we have more control over all aspects of our business model, we enjoy higher margins, a growing core of dedicated customers and recurring revenue streams, with significant growth opportunities for the future. Of course we'll continue to work with and support our existing retail customers.”
As part of the reorganization, the VP of sales position, which had been held by Jeffrey M. Brainard, has been eliminated.
