Any professional observer of retail trends and every shopper in the U.S. would tell you that retailing, and retailers changed dramatically during the pandemic. But many of those changes were already in the works before the pandemic even started. One of the interesting things that happened during the pandemic is that Amazon announced the closure of almost all their test stores that were in the works. On the surface, one might think that online retailing charged ahead so rapidly during the pandemic that Amazon decided to withdraw from stores …
Spinning Around
Remember when we (along with me and every other financial exec in department store land) all sold our receivables portfolios? I studied that every year for about 20 years (literally) when I was an executive at the May Department Stores Company (May Co.) before we finally made the move. We knew it would never actually improve the operating company to get rid of the receivables portfolio, but we were finally offered deals so good on the valuation of the portfolio and finally negotiated to the point that the operating disadvantage was manageable. …
The Current State of Retail
Hudson Yards I wrote this shortly after visiting Hudson Yards a couple of weeks ago. I have been back again (and again) since, and I have not seen anything that has changed my views. Yes, it's new. Yes, it's pretty cool. And yes, it is just another shopping mall. Will it do well? Maybe. It's building its own community to draw from. It is in one of most visited tourist cities on earth, and it is near one of the most visited attractions in the city, which is the most visited retail site in the city, the Miracle on 34th Street…Macy's. Yes, …
Here Comes Alibaba
I recently attended Shoptalk Europe in Copenhagen with 350 retail and retail tech CEOs and another 2,050 retail practitioners and investors who were interested in hearing what those CEOs had to say. Here are a few aha moments I had that are shaping the future of retailing. The Brave March Forward One staggering conclusion I reached after hearing those discussions is that Alibaba is taking over the world, not Amazon. Currently Alibaba has more online sales than any other company, excluding Amazon, and is becoming one of the world's …
Amazon is the New Walmart…Or Is It?
Hey, if orange is the new black, then anything is possible. Given the impact of Amazon.com and online on traditional retailers, maybe bankruptcy is the new black. Will it help or hurt Amazon to drop reference pricing from their website? A Brief History When Walmart was 20 years old in the early 1980s, it represented about 3 percent of non-restaurant, non-bar retail sales and took about half of all new growth in retail sales. Amazon is about 20 years old, is about 3 percent of non-restaurant, non-bar sales and takes about half of all new …
The Demise of Athleisure
I think athleisure is rolling over for fall and its growth rate will dramatically slow, and then stall out. Let’s take a look at current market darling Lululemon. Admittedly, Lulu has great technical product for yoga. And, it makes pretty good product for other serious athletes. It tries to make great products for male athletes as well. And, actually, it does, but most guys don't care. The label does not say manly Under Armour, Nike or even Champion. Lulu also makes ABC casual pants for men, and they are also a pretty good product, if you …
Online Contrarian
The Boston Consulting Group, which I think is pretty good, is not on my wavelength when it comes to online sales. Here’s an excerpt from comments in the study they recently conducted regarding consumers' intentions about future online purchasing: "A vast majority of U.S. residents between the ages of 15 and 85 years old has purchased an item online in the last year. With so many consumers already comfortable online, ecommerce is expected to plateau over the next three years. Depending on the category, a minimum of 78 percent and as much as 92 …
The Past as Prologue
I recently spent some time looking 25 years into the future of retailing. Coincidentally, I played this game almost 25 years ago, exactly. I think it was July of 1989 when I was an executive at the May Department Stores Company. We were operating 19 department store names, two discounters (Caldor and Venture), 26 shopping centers, and a couple of specialty stores, including Payless ShoeSource, 25 years ago. As we looked at the future then, we certainly missed the rise of online sales and mobile devices. We correctly guessed that there would …