Realogy Announces Strategic Organizational Changes
September 5, 2019
Moves Designed to Accelerate Growth and Further Fuel Businesses of Affiliated Agents and Franchisees by:
- Unifying Coldwell Banker's Voice as Affiliate Network and Company-Owned Brokerage Integrate to Become One Global Business;
- Driving Faster Growth for Better Homes and Gardens Real Estate, ERA and Climb through Formation of Realogy's New 'Expansion Brands' Portfolio; and
- Speeding Delivery of Groundbreaking Tech and Products for Both Franchise and Realogy-Owned Businesses with Creation of New Product and Innovation Group
MADISON, N.J., Sept. 5, 2019 /PRNewswire/ -- Realogy Holdings Corp. (NYSE: RLGY), the largest full-service residential real estate services company in the United States, today announced strategic organizational changes designed to accelerate growth for all agents and franchisees affiliated with its seven well-known brands. Planned moves include the integration of the Coldwell Banker® affiliate network and company-owned brokerage, the formation of a new Expansion Brands portfolio comprised of the Better Homes and Gardens® Real Estate and ERA® brands as well as the Climb® brokerage operations and the creation of a new Product and Innovation Group to serve both franchise and Realogy-owned businesses.
"At Realogy, all of our efforts are focused on growth, and we continue to transform ourselves to deliver new products, services and technology that further fuel our powerful brands and the businesses of affiliated agents and owners," said Ryan Schneider, Realogy president and CEO. "These changes are designed to empower our teams to move faster and more nimbly take advantage of Realogy's scale and resources to benefit agents and franchisees across all of our brands."
A Powerful, Singular Voice for Coldwell Banker
The planned integration of Coldwell Banker will bring many benefits to affiliated agents and franchisees. Creating a unified voice in the market will further strengthen Coldwell Banker's legendary brand, while a unified leadership team is expected to allow for faster, more agile decision-making, including an aligned approach to growth. Combining as one global business will also give affiliates an opportunity to access a suite of innovative agent tools and services the company-owned operation has been investing in and delivering to agents. And finally, Coldwell Banker will see increased regional marketing collaboration, greater efficiency of ad spend, and markedly bolstered support from the unified marketing team.
Effective January 1, 2020, the integration will start with a unified Coldwell Banker leadership team to be helmed by Ryan Gorman, in addition to his current role as NRT president and CEO, where he is responsible for the Coldwell Banker company-owned business. As of January, current Coldwell Banker CEO, Charlie Young, will move into a senior advisor role supporting the integration, and over the next few months, Gorman, Young and the soon-to-be combined leadership team will listen to and work with agents and affiliates to design the most powerful suite of benefits, tools and services. Taking best practices from both the company-owned and franchise system businesses, as well new innovations, the actions will allow the entire Coldwell Banker network to further accelerate the growth of their businesses and achieve their goals.
"Coldwell Banker is an iconic brand, and great brands are continuously seeking new ways to grow even stronger," said Gorman. "In working closely with Charlie and his leaders to plan for the roll out of the recent rebrand, it became clear how powerful a unified Coldwell Banker brand team could be in serving our affiliated agents, franchisees and consumers."
"Since assuming the Coldwell Banker CEO position, I have been laser-focused on positioning the brand for the next chapter of its storied legacy, and this integration is a logical next move, enabling us to go to market with a single, unified voice," said Young. "I will be working closely with Ryan and the combined leadership team on the integration of Coldwell Banker as one global business."
Uniquely Positioned to Fuel Growth
Realogy's seven unique brands vary in geographic footprint, and certain brands have opportunities for accelerated growth into underdeveloped markets. The new Realogy Expansion Brands portfolio will further focus the company's investment as well as dedicate resources to fuel growth. The new grouping will build off the success of Better Homes and Gardens Real Estate (BHGRE®), one of Realogy's fastest growing brands, and apply its proven practices for growth, including effective agent recruiting, unique business models, and lifestyle marketing, across the segment. Like BHGRE, ERA offers a unique value proposition for agents and franchisees, such as a flexible business model and brand positioning, but shares common principles, including service driven culture, cutting-edge marketing and high-growth attitude. Industry brand builder Sherry Chris, who launched BHGRE and has thoughtfully guided its growth over the past 10 years, will lead Realogy's Expansion Brands.
"The individual spirit and collective strength of our brands is one of Realogy's core business advantages," said John Peyton, president and CEO of Realogy Franchise Group. "Organizing the brands most poised for accelerated growth into new markets under Sherry and her combined team's expert guidance is expected to bring increased productivity and brand expansion while preserving what makes each special and unique as they grow."
Leveraging the 'Collective Strength' to Benefit All
As part of its growth strategy, Realogy is focused on generating more high-quality leads, enhancing the consumer experience and delivering next generation technology for both franchise and company-owned brokerage businesses. To leverage the best of Realogy's resources to develop innovative products and services and enhance speed to market, the new Product and Innovation Group will bring together agent technology, partnerships, learning and recruiting as one team to be led by former ERA CEO Simon Chen.
"Simon is a widely respected entrepreneur, brokerage tech expert and real estate investor, and his new team will utilize industry-leading technology from Realogy, including an open architecture, cloud-based solutions and intelligent products that incorporate AI, predictive analytics and machine learning to drive continued broker and consumer innovation across brands," continued Peyton. "While our focus remains on delivering unique and differentiated brand experiences, we also recognize the benefits the collective can bring to affiliated agents and owners."
About Realogy Holdings Corp.
Realogy Holdings Corp. (NYSE: RLGY) is the leading and most integrated provider of residential real estate services in the U.S. that is focused on empowering independent sales agents to best serve today's consumers. Realogy delivers its services through its well-known industry brands including Better Homes and Gardens® Real Estate, CENTURY 21®, Climb Real Estate®, Coldwell Banker®, Coldwell Banker Commercial®, Corcoran®, ERA®, Sotheby's International Realty® as well as NRT, Cartus®, Title Resource Group and ZapLabs®, an in-house innovation and technology development lab. Realogy's fully integrated business model includes brokerage, franchising, relocation, mortgage, and title and settlement services. Realogy provides independent sales agents access to leading technology, best-in-class marketing and learning programs, and support services to help them become more productive and build stronger businesses. Realogy's affiliated brokerages operate around the world with approximately 188,600 independent sales agents in the United States and approximately 111,200 independent sales agents in 113 other countries and territories. Realogy is headquartered in Madison, New Jersey.
Certain statements in this press release constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Realogy to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, including statements related to Realogy's strategic organizational changes and the intended results of such changes. Statements preceded by, followed by or that otherwise include the words "believes", "expects", "forecasts", "anticipates", "intends", "projects", "estimates", "potential", "designed to", and "plans" and similar expressions or future or conditional verbs such as "will", "should", "would", "may" and "could" are generally forward-looking in nature and not historical facts. Any statements that refer to expectations or other characterizations of future events, circumstances or results are forward-looking statements.
Various factors that could cause actual future results and other future events to differ materially from those in the forward-looking statements, include, but are not limited to risks relating to Realogy's ability to execute its strategic organizational changes and whether, even if successfully executed, such changes produce the intended results, as well as those set forth under the headings "Forward-Looking Statements" and "Risk Factors" in Realogy's filings with the Securities and Exchange Commission, including its Quarterly Report on Form 10-Q for the quarters ended March 31, 2019 and June 30, 2019 and its Annual Report on Form 10-K for the year ended December 31, 2018, and its other filings made from time to time, in connection with considering any forward-looking statements that may be made by Realogy and its businesses generally. Realogy undertakes no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events except as required by law.