Recently, most of the top retail brands have seen drastic reversals to their top line and marketshare. Nike has been depressed over the past 6 months, SportsAuthority entered a chapter 11, now even the beloved Polo RL is up for drastic changes, including a new CEO, after losing half of its valuation from three years ago.
"WSJ"Mr. Larsson, 41, is expected to unveil a new corporate strategy on Tuesday at a meeting for analysts. By his reckoning, the company has too many brands and retail stores. It is reliant on department stores, where shoppers are hooked on discounts. Its costs are bloated and its inventory system inefficient.
Are these structural changes or is this just cyclical due to macro factors? The changes may be coming too late in the game, as alternatives to the aforementioned will pop up (Under Armour and Dick's come to mind) especially as RL looks to reverse this slide.
This is structural, just like Walmart killed the five and dime and the regional department stores, Amazon and Jet are going after the brick and mortar. I'm not sure the value proposition of a Macy's or Sears. I buy most of my books either at small independent book stores or at Amazon. I either want service or low price. That's why I think it is structural. I think that there will be a great split. Either high end competing on quality and service and low end competing on price.
Yup. Brick and mortar retail has been dying for a while now. We're in the middle of a huge industry shift.
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