Reformation's CEO Hali Borenstein discusses the brand's pivot towards rebuilding trust with both customers and employees after a turbulent period. The episode highlights Reformation's renewed commitment to transparency and sustainability, emphasizing physical retail expansion and innovation in brick-and-mortar experiences while maintaining a strong DTC presence. This is a crucial listen for brands navigating crisis, fostering internal culture, and strategizing omnichannel growth.
It’s been a turbulent few years for Reformation, but the women’s clothing and accessory brand is forging ahead. According to CEO Hali Borenstein, the focus now is on building trust both with customers and employees. “It is all about walking the walk,” she said on the Modern Retail Podcast. Borenstein became Reformation’s chief executive in 2020 when its founder and then-CEO Yael Aflalo stepped down after a former employee’s social media post went viral that alleged unfair treatment of non-white employees and micro-aggressions such as being passed over for promotions in favor of white counterparts. (An external review of the allegations by a law firm published five months later asserted Reformation’s workplace to be “not racist”.) At the time, Borenstein was president and vp of merchandizing. “I think that the summer of 2020 really shined light on the fact that we did not have enough focus on our internal people,” said Borenstein. Now, she said, she’s looking toward the future. “My focus has really been not just on the growth of the business, but making sure that our team everyday feels like they are heard and valued,” she said. Reformation focuses a great deal on transparency and sustainability. According to Borenstein, one of her most important moves as CEO was being open and honest about all parts of the business. “Not every decision is an easy decision,” she said. “But I will share with you why I made a decision and why the leadership team is thinking about something in a certain way.” Growth is another a big focus for the brand. The company currently has about 25 locations globally -- and has plans to open more over the next year. “We really believe in having more stores,” Borenstein said. “And then, within our store experience, we also want to continue to innovate on it so that we’re really building the best experience possible.” While 93% of Reformation’s business is direct-to-consumer, the brand does have a few wholesale partnerships with retailers like Nords