Monday, March 20, 2017

Disruption is Inevitable, Essential & Painful


America has too many stores, too much inventory, and too few shoppers.

Macy’sJC PenneySearsJ. Crew and other major retailers have already announced that they will be closing stores because in the new retail landscape they cannot justify the return on these expensive fixed assets – and because customers no longer choose to spend their money in old-model retail stores.
The market capitalization of American department stores dropped nearly $80 Billion since 1999, according to Census data.
The cost of disruption is more than store closings and diminished market caps, it's people and jobs. Macy's and JC Penney, alone, will be closing over 200 stores and eliminating over 12,000 jobs.
You can not shrink your way to success. However, you can buy yourself more runway.

Tuesday, March 7, 2017

What I Should Have Said, But Didn't

Last week in Las Vegas, during the largest fashion industry trade show, MAGIC/PROJECT, I delivered the keynote presentation for the YMA Fashion Scholarship Fund and UBM Advanstar. It was entitled, “Disruption is the Mother of Invention.” 
At the end of my presentation a woman stood up to ask a question. Actually, she made a statement.
“I own a fashion retail store,” she exclaimed. 
“I’m a good merchant, it’s a good store. It’s been in business a long time. Customers shop my store with their smartphone in their hand… and then they buy the item on Amazon Prime.” 
She cried out, 
“it’s not right. It’s not fair.” 
And then she said,
“What do I do?” 
My answer was “textbook,” when the last thing needed was a textbook.