In the middle of the barrage of acquisitors for Kohl’s, I wrote Two Real Estate Moguls. Note to Kohl’s: Repel, Repel, Repel. At the time, it was based on my belief that either of the two suitors -- Simon Properties and HBC -- would ultimately turn Kohl’s into a real estate move. David Simon, CEO of Simon Properties, and Richard Baker, CEO of the Hudson Bay Company, both became billionaires, not because of their retail acumen. They were, and still are mega-wealthy based on their brilliant abilities to unlock the value of retail real estate under …
Will Gap Inc. Need a Fifth “Hail Mary?”
I wrote in November 2021, Is Sonia Syngal Gap’s Fourth “Hail Mary?”, largely based on the three “Hail Marys” that preceded her, of whom failed to turn the declining brand around. I attributed a big part of their failure with the fact that none of the three had apparel retail experience. Go figure, when all four of Gap Inc’s brands are apparel. Perhaps the Board or certain members of it, did not want another “rock star merchant prince” to overshadow them, and who would come to personify the brand. Mickey Drexler left the helm of Gap in …
Walmart and Target: Canaries in the Coal Mine?
If Walmart and Target are canaries in the retail coal mine, maybe there’s a third canary in the economic coal mine named Elon Musk who recently said we are already in a recession. Think what you will about Mr. Musk and his eccentric and stratospheric imagination … maybe he’s right. My friend Richard Baum, Managing Partner of Consumer Growth Partners, reminded me that “It's pretty common knowledge that by the time the government officially declares that we are in a recession, the country is usually on its way out of it. Not real genius on Elon …
lululemon: Power of Three x2
“The success of our Power of Three formula in delivering on our 2023 growth strategy supports our goal to double (x2) the business over the next five years,” said CEO Calvin McDonald to analysts recently, referring to lululemon achieving its 2023 revenue projections in 2021 (two years ahead of schedule and a 40 percent increase over 2020). Accordingly, he’s projecting lululemon will double its 2021 results by 2026, (from $6.25 billion to $12.5). They anticipate total net revenues will increase 15 percent, at an annual compound growth rate by …
Two Real Estate Moguls. Note to Kohl’s: Repel, Repel, Repel
Let’s take a look at the situation Kohl’s is up against, and it isn’t pretty. Mr. Richard Baker I have already expressed my opinion of HBC’s intent to acquire Kohl’s, under the leadership of the now high-profile Richard Baker. My advice was that Kohl’s must do whatever they can to repel such a deal. Why? Because however many billions of dollars Baker has amassed during his career, they were not the result of his retail acumen. They were, and still are, the result of his brilliant ability to unlock the value of retail real estate under the …
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As Amazon Closes Bookstores, B&N Bounces Back: A Sweet Irony
What did I tell you a couple of weeks ago? I’ll remind you. I said the reason Amazon was closing most of their physical retail properties, including its bookstores, after years of fiddling around (testing is what they would call it) was because they simply don’t understand the “art” of retailing. And it seems that Amazon believes the “science” of retailing is superior with all the tech stuff they’ve been testing in some of their stores plus their masterful analytic skills identifying local consumer preferences. Wait! Did I say superior …
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Macy’s Solid Plan…on Agile Footing
At last week’s JP Morgan Chase Annual Retail Roundup, Macy’s CFO Adrian Mitchell laid out a very clear-eyed path forward, recognizing the obstacles and issues. He also identified numerous opportunities Macy’s is preparing to capitalize on, expressing the need for agility in uncertain times. I heard personalization, localization, off-mall smaller formats, (including Market by Macy’s, Bloomie’s and Backstage), reimagining real estate assets, an expanded and curated digital third-party marketplace, decentralized decision making, inventory …
Unexpected Unkowns
So, if you think what is swirling around the world is just more complicated and painful than normal times, and that we will once again overcome and go on our merry way, you’d better read this. Forget about experiencing one “unknown” after another over the past two years. I’m talking about horrific, unexpected, and never-before shocks that threw the world into unknown places where solutions are still unknown. We “warp-sped” a Covid vaccine after millions of people died from it, only to face more communicable variants with the new B.2 now …