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I'm not an expert on retail, but it seems like an unbelievably tough business, I wonder why so many fail. Why so many have the same strategy, or similar strategies.
-Very few seem to last more than one business cycle. Look at all the companies that are recently bankrupt...mrs fields, sharper image, etc.
-In some industries, it seems like no one breaks out and makes money (i.e. toys, toys r us, kbtoys, fao schwartz).
-Tastes are very fickle (look at fashion). I go to the mall and look at gap, j crew, abercrombie, banana republic...what seperates them? It would make me nervous if I was an investor or shop owner.
-Seems like so many of them are all the same...same level of service, same selection, following the same trends. Same store layouts.
None of them really stand for anything. Remember Circuit City's, "Service is state of the art?"
-Then on the demand side. If consumer credit goes down, or wages go down. Or the loss of big employers in the city where you are.
-Or changes in how you shop...indoor malls vs outdoor, lifestyle malls.
Any successful retailers here? Or investors. Thoughts on the industry as a whole?
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