Pure-play e-commerce’s scaling woes continue

Just a couple of years ago the conventional wisdom was that e-commerce was going to wreak havoc with every aspect of physical retail. This "e-commerce will eat the world" hypothesis continues to drive the "retail apocalypse" nonsense. It has even caused some normally level-headed analysts (and some maybe not so much) to suggest that brick & … Continue reading Pure-play e-commerce’s scaling woes continue

Wayfair, StitchFix And Pure-Play E-commerce’s Scaling Problem

Late last month, Wayfair, the leading online-only furniture brand, reported dramatic sales growth and yet year-over-year profits fell significantly. Unsurprisingly the stock took a steep hit. In its most recent earnings announcement, Stitch Fix, the online styling subscription service, reported sales up over 25%, yet profits were essentially flat. When they signaled that profits were expected to get worse as they … Continue reading Wayfair, StitchFix And Pure-Play E-commerce’s Scaling Problem

Discount Nation, Promiscuous Shoppers And The Sucker Price

Early in 2011, I first wrote about what I called "Discount Nation." Having worked at Sears earlier in my career I was quite familiar with highly promotional retail. But what I was noticing was the ever growing intensity of discounting. Among traditional retailers the degree and frequency of deals was escalating. More brands were layering on loyalty … Continue reading Discount Nation, Promiscuous Shoppers And The Sucker Price