Why does one group of retailers outperform the S&P 500 by 23% over the last 22 months, while a second group lags behind, beating the S&P by only 9% during a period of rapid escalation of retail stock prices? Jeff Bailey of Y-charts says that the critical difference is that the former group has relatively low exposure to Amazon. Jeff quotes work by William Blair & Co. analysts. Now that it has been positively quantified, what do you do if you are a retailer with a substantial overlap with what Amazon sells?
Thursday, May 16, 2013
That would be 289.77 billion dollars, 1500 suppliers and 84 launches in 2011! These are the estimates from a cool info-graphic produced by the Florida Institute of Technology on the subject of Space Supply Chain. Interestingly, it also notes that “logistician” employment is projected to grow by 26% and that is a full 14% faster than the average for all occupations from 2010 to 2020.
Tuesday, May 14, 2013
It is amazing how businesses forget the very basics, like who their customers are. But DEE GILL on Y-Charts makes that case for J.C. Penney and it is rather convincing. In 2010, J.C. Penney fired their longtime CEO Myron Ullman to bring in Ron Johnson, then the head of Apple's retailing operations. Ron Johnson did what had made him successful at Apple: Crisper ads, bright stores, and fresh merchandise. But after a short 17 months on the job J.C. Penney board decided to fire Ron. Reason: Lack of results, retail sales were down by 25 percent and the stock had lost half of its value. What went wrong?