I thought I was done with my recent assessment of Authentic Brands Group licensing model as well as their SPARC deal with Simon Properties. I have already commented on the idiocy of placing dying ABG brands into dying malls (Simon Properties) to try to prop up a dying JC Penney brand as the anchor in many of their shopping center locations. In fact, I summed up my predicted outcome: “Here is what failure looks like: Acquire a bunch of once-cool brands on the cheap, license third parties to run them, further license them out to a mall developer …
Victoria’s Secret: Too Little Too Late
In 2018 after three years of a steady decline in Victoria’s Secret’s share of market (from 32 percent in 2015 to 21 percent in 2020, according to Euromonitor International), a great awakening occurred among the brand’s leadership. Modern young women had zero interest in trying to emulate the brand’s sexy Angels or wearing soft-porn lingerie to appeal to a male fantasy. Comfortable in their own bodies, whatever their shape may be, they seek natural, authentic and honest products. While a consistent decline in share of market alone should have …
Mirror, Mirror on The Wall, Who’s the Fairest of Us All?
“Who’s the fairest of us all” was made famous by the evil queen in Snow White and the Seven Dwarfs, as she stood in front of her magic mirror. I certainly don’t view Lululemon as the evil queen. Quite the opposite. However, it gives me the provocative metaphor for emphasizing my belief that Lululemon is, and has been, the poster child brand in building a completely holistic retail ecosystem. It is so powerful and engaging with its range of customer experiences that no other retailer in its space even comes close. And now with its acquisition …
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ABG, SPARC and JCP Fading Into The Sunset
Great brands don’t die, they just fade away. And where do they go to expire? Authentic Brands Group, of course. Talk about rolling up a bunch of losers in fading-away mode: ABG partnered with another fade-away, Simon Properties (creating SPARC – Simon Properties Authentic Brands Retail Concepts). Now CEO David Simon is talking about putting ABG’s dying brands into an even more impressive fadeout: JC Penney. That deal with the ABG brands may indeed be an anchor (but of the reverse kind from what it used to mean) that will take the entire …
Amazon/MGM – Not What You Think
Over the past decade I’ve been blathering on about this being the distribution century, meaning that consumers and retailers, both armed with technology, would drive multitudes of different avenues of distribution. These new distribution channels are more convenient and faster for consumers; and more efficient, effective, and competitively advantageous for retailers and brands. Shared Platforms So, in trying to explain the distribution thesis more pragmatically, and with clarity, I describe how all retailers and brands could achieve targeted …
Macy’s Beyond the Numbers
Wow Macy’s...at least for now. Q1 results surprised and exceeded Wall Street’s expectations. Furthermore, as CEO Jeff Gennette boldly stated about Macy’s Q1 financial results, “We don’t see this as a short-term pop.” Full of optimism, he said, “There will be a gigantic gift holiday. We are approaching it that way.” In fact, his ebullience over Q1 and outlook through back-to-school and the Holidays, prompted Macy’s to raise its full-year guidance for 2021. Behind the Numbers I’m going to skip past the actual numbers. You have probably already …
SPARC: A Losing Combo
SPARC: Maybe this acronym for the Simon Property Authentic Brands Retail Concepts was purposely crafted to send a message that many of the withering Simon Properties’ malls, co-owning and leasing spaces to many of the stale and losing brands in the Authentic Brands portfolio, would spark new life into both. I wrote about Simon and Brookfield’s acquisition of the dying JC Penney, Too Big to Fail stating that it was a short-term move to save Simon’s and Brookfield’s butts from a massive exit of not just JCP but also the hundreds of other …
Eat Your Credit Card
What would it take to get you to eat a credit card every week for an indeterminate amount of time? Answer: You’re already doing this voluntarily. When I first heard that there was a massive chunk of plastic in the Pacific Ocean twice the size of Texas and three times the size of France called the Great Pacific Garbage Patch, (GPGP), it blew my mind. But that concept is so abstract I just can’t get an in-my-face, personal feeling or tactile sensation. So, it eventually ends up in a part of my brain where I compartmentalize all the horrible …