If even a slightly credible rumor is true, that Amazon is eyeing an acquisition of JC Penney, Jeff Bezos would be making another huge strategic mistake. As I pointed out last March, the fact that Amazon chose to acquire Whole Foods (grocery being one of Bezos' early declarations that Amazon needed to get grocery and apparel "right") was the first, huge strategic mistake. Not only is Whole Foods an upscale grocer, not quite compatible with Amazon's more mainstream brand, the business was not in good shape when they acquired it, and they're still …
The Great Reopening?
The great American closing was straightforward. Stores, restaurants, and the bulk of the economy switched to sleep mode; waking up will be a different matter. The shape of this phase of post-Covid retail is now unfolding. Other countries are well into the reopening and offer us models to consider. Additionally, innovators, driven by opportunity and a problem-solving culture have been rushing potential solutions to market. And finally, for VR, an existing technology that has been awaiting wide-spread adoption, the moment may have …
Farmers Markets During the Time of Coronavirus
In the sea of the coronavirus, I've made my bi-weekly pilgrimage to the Union Square farmers market in New York for fresh food. Whatever the many other negative aspects to the pandemic lockdown - I'm am the lightest weight I've been in 30 years. Yes, it's the stress, but eating only at home, the fresh foods at the farmer's market and daily exercise have made a difference. In various other parts of the country farmers markets have been closed responding to the government requirements for social distancing. In LA the mayor shut down his city's …
What Will Retail Real Estate Be Without Department Stores?
The possibility of losing one or more major department stores is looking more and more like a reality as Covid-19 wreaks havoc on these already financially ravaged institutions. Due to changing shopping behaviors and brands going direct to consumer, the result is that a lot of premium real estate will be available. Down and Out Just in the time it took to write this article there's been a stream of daily announcements. Macy's, J.C Penny, Lord & Taylor, J. Crew, Nordstrom, and Neiman Marcus are all on the edge of bankruptcy. In the …
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The New Normal for Retail: Is It Time to Lean Toward Online?
Most people are wondering what life after this recent pandemic will look like. Will we commute back to work, or will working from home and meeting in virtual space become the new norm? Better yet, will we ever vacation away from home - even internationally? Similar questions are also being asked as communities begin to entertain the idea of reopening retail stores. A recent survey by Progressive Grocer already revealed a dramatic shift in the grocery sector, where 31 percent of U.S. households used e-commerce in the past month versus 13 …
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J.Crew and Neiman Marcus: A “Not What You Think” Lesson
The retail and general business media are jammed with news, insights and perspectives around the bankruptcies of J.Crew and Neiman Marcus. And unfortunately, too many readers could finish these articles believing that a heavy debt load combined with the shutdown due to Covid-19, were the major culprits in bringing these brands down. There are many other major factors that pushed them onto a declining curve beginning in the early to mid-2000s. So, in my opinion, they were heading to a cliff's edge long before the virus. It just accelerated their …
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When Did the Gap Turn into Old Navy?
Gap is struggling. CNBC reported that Gap’s stock had fallen by more than 25% over the past year before the coronavirus outbreak. Gap’s former CEO, Art Peck, was fired in November of 2019 after a series of missteps led the brand away from the resurrection the retailer needed. Gap recently furloughed the majority of its employees without pay, but extending health benefits throughout shutdowns. So, what’s the problem with Gap? The standout issue is that its offerings have, for some time now, been undifferentiated from those of Old Navy, its …
We Have Seen the Consumer and It is Us
The most pressing question facing our consumer society and economy is the one we keep asking each other: What's going to happen? David Ogilvy famously told his clients, "The consumer is your wife," and, while editing it a bit for changes in the workplace and culture, his dictum still holds: "The consumer is you. The consumer is me. The consumer is the person down the street. The consumer is us." And we, the consumers, are unsure of what will happen next and how we're going to react to THAT next worrisome thing that heads our way. Take …