mall

Retail Guru Walter Loeb Says JCPenney Is ‘Sliding Further Into Oblivion’ (JCP)

Source: http://www.businessinsider.com/walter-loeb-jcpenney-2012-10

black hole

Walter Loeb, a retail consultant and former senior retail analyst at Morgan Stanley, is very worried about JCPenney.

Loeb writes in a column at Forbes entitled “JCPenney slides Further into Oblivion” that he visited the JCPenney store in the Manhattan Mall to see things firsthand.

While he liked the aesthetic changes put in place by CEO Ron Johnson, he was depressed by the lack of customers.

He believes that there are “few reasons for customers to return unless they are given some unusual incentives.” After all, the construction of the new shops is going to take a while, and stores will remain disrupted throughout.

Here’s his bottom line. From Forbes:

My initial hope was that sales would level off in 2013; I now feel that at the end of fiscal 2013 the company may only have sales of $12 Billion, a loss of $5 Billion from the high point of fiscal 2011. It will however be a different store with good opportunity for growth once the whole transformation is completed. It should appeal to a more aspirational shopper.

My conclusion is that the company is becoming irrelevant to investors and a liability for manufacturers since they will have to justify discount prices to other customers unless J.C.Penney carries old styles or exclusive models. Right now the company has been driving away its core customers but has yet to capture a new one as the decline in revenues clearly demonstrates.

NOW SEE: www.businessinsider.com/huge-photos-of-jcpenneys-brand-new-concept-shops-2012-7“>Huge Photos Of JCPenney’s New Concept Shops >

Please follow Retail on Twitter and Facebook.

Join the conversation about this story »

Tags: , , , , , , , , , , , , , , , , , ,

Thursday, October 4th, 2012 news No Comments

The Pants You’re Buying At Big Retailers Are Actually WAY Larger Than The Size Advertised

Source: http://www.businessinsider.com/pants-size-advertised-2011-12


Your pant size is probably lying to you to make you feel better about yourself, reports Abram Sauer at Esquire.

It’s called “vanity sizing,” and it’s the reason why you find out your size is different at the various stores in the mall. It’s an infamous way marketers use to influence women buyers, but they do it for men as well.

The folks at Esquire’s Style blog put together this nifty graphic on the real size of pants, compared with what the brands advertise (for men’s pants):

esquire pants sizes

Apparently marketers think that the vanity factor outweighs the confusion the sizes create for customers.

One solution out there for consumers is a body scanner called MyBestFit, which can tell you your size in various brands. It’s kind of creepy and airport-like, but it works.

What do you think of this practice? Do you want brands to make you feel better about yourself, or do you think they’re just lying to you?

Please follow War Room on Twitter and Facebook.

Join the conversation about this story »

See Also:




drag2share – drag and drop RSS news items on your email contacts to share (click SEE DEMO)

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Wednesday, December 28th, 2011 news No Comments

What do I see? Utter, Unfathomable Inefficiency – that is retail as we know it

Have a look at the 2 pictures below taken at a mall-attached large chain retailer.  Not a SINGLE customer in the store.  Practically every rack had a red and white sale sign on it.  Look at the multiple sizes of each item that have to be made available.

Now consider this.

What is the probability of someone walking through the store to this location, finding an article of clothing that is subjectively pleasing and desirable enough for the person to pick it up and consider the price. Consider if this is a nice to have or need to have item. Further consider the price and whether it is higher or lower than the clearing price — the price at which the user (in that particular user’s mind) thinks it is a good deal and decides to buy it. What is known is the quantity of work needed to inventory, merchandise, display all the products. What is not known very well is the probability of a sale for any or all of the items in the store.

Further consider the redundant inventory of similar (or the same) generic products — redundant because multiple stores attached to the same mall carry pretty much the same generic stuff. Even brand names provide little differentiation or value add. And celebrity designers and endorsers such as Kimora, Cindy, Kathy, or even Jaclyn Smith don’t help. The entire Kimora section was just as deserted as the second photo in this bunch.

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Thursday, July 1st, 2010 integrated marketing 1 Comment

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

Augustine Fou portrait
http://twitter.com/acfou
Send Tips: tips@go-digital.net
Digital Strategy Consulting
Dr. Augustine Fou LinkedIn Bio
Digital Marketing Slideshares
The Grand Unified Theory of Marketing