At the recent inaugural ShopTalk Europe event in Copenhagen, Hudson's Bay Company CEO Gerald Storch posited that retailers risk hastening their demise by taking an axe to their store counts. Clearly there are many factors that contribute to a brand's march to the retail graveyard, yet there is mounting evidence that Storch's observation is on the money. As I've … Continue reading Are mass store closings the start of an inevitable downward spiral?
Tuesday morning the Neiman Marcus Group reported another quarter of disappointing financial results and announced that it was going to "explore strategic alternatives." To be sure, some of Neiman's problems are idiosyncratic, largely owing to a botched systems implementation and a now crushing debt load taken on in a 2013 private equity buyout. Yet the brand's continuing … Continue reading Should Hudson Bay Buy Neiman Marcus? The Case For And Against.
So-called "asset-light" business models, where a company has relatively few capital assets compared to the overall size of its operations, have drawn increasing attention (and investor dollars) in recent years. Think Airbnb, Uber, Snap and many other essentially digital-only brands. The concept isn't new. Brand licensing and many hotel management and franchise-based businesses have employed … Continue reading Relevance-light models are now retail’s big problem