Avon Products Inc. announced that Sheri McCoy, CEO of the U.S. cosmetics company, will step down. McCoy's exit caps a turbulent five years for the company, which shrunk to half its size after selling most of its U.S. business, was hit by a bribery scandal in China, and has seen its stock lose about 85 percent of its value. The 130-year-old company has been struggling to reverse slumping sales. In 2012, annual sales crossed $10 billion, however, sales are now at half those levels and are expected to decline further.
Total Retail's Take: Avon has been struggling for a while now to right itself in a very competitive (but thriving) market. Aside from leadership changes, the cosmetics company has faced increased competition. Other beauty companies, such as L'Oreal and Estee Lauder, are embracing an omnichannel approach and looking to influencers and hands-on technologies to help get traffic in stores and online. Avon's current direct sales model isn't measuring up to its competitors’ multiple touchpoints with consumers, leaving the company in a tough spot to both acquire new customers as well as retain existing ones.