Justin Bieber Doll to Save Retail?

Well its that time of the year to look at what presents will be the hottest to buy. With the crazy advertising going on this year because of the push to save the industry through holiday sales, the turnout for Black Friday is going to be crazier than ever. This yea, there are so many great deals that it would be crazy not to be able to find the cheapest price.

What is absolutely crazy about this year is that a Justin Bieber doll is suppose to raise the retail industry by a quarter this season. Now, I am not to judge what people like to listen to music wise, but a Justin Bieber doll is really that popular? Apparently books and other dolls just do not match up. I must say it is brilliant marketing done by the 16 year old's publicist. He already has completely taken over Itunes so why not the economy. At a young age he learning this market very well.

By: Ariel Levin

http://voices.washingtonpost.com/blog-post/2010/11/black_friday_shopping_tips_for.html

Time to "Twist and Shout": Beatles Now on iTunes

Steve Jobs and Apple announced on Tuesday that the Beatles would finally appear on iTunes. Terms of the deal between Apple and the record lable EMI Group, Ltd. have still not been released, but the talks have happened. Apple now has the right to digitalize the Fab Four and sell their music online.

The Beatles' entrance into the realm of iTunes could be "Hello" for some and "Goodbye" for others in the industry of music retail. For one, it completely solidifies the prominence of online music. The fact that the Beatles had been missing from iTunes before meant that there was a great gap in the digital music system. Now that iTunes has said "goodbye" to that gap, it can really start to take a hold of the music business.

Over the past few years, online music selling has very quickly become the primary form of music retail, and the fact that that retail now includes the Beatles only makes the online market stronger. It may even represent a step in the direction toward the death of the CD, and, therefore, physical music retail stores. As more and more artists finally go digital, there are fewer and fewer reasons to go out and buy CDs. Any retailers that sell CDs, from Best Buy to small record stores, will suffer from this digitalization.

This transition could also mean big things for Apple in general. The Beatles are an older group and draw from an older population of fans. The fact that they are now available online may encourage those of an older generation to jump on the iPod bandwagon. Incorporating such a groundbreaking band will open awareness and spread Apple products across more generations.

Apple is likely to see a large boom in sales when the Beatles finally go on the market. Everyone has been waiting for this for a long time and they will be eager to begin buying every song imaginable. There will suddenly be so many popular songs available at once, and sales will rise accordingly. Some may even buy their first iPods because of the fact that the Beatles are now available.

As for music retail, the online trend is becoming more and more common, and it is becoming more and more difficult for anyone to compete with Apple in that category.


Sources: http://online.wsj.com/article/SB10001424052748703326204575617004052395816.html

http://www.appolicious.com/finance/articles/3991-with-the-beatles-now-on-itunes-the-album-format-is-no-longer-yesterday

Catherine Reeves

Game over… Continue?

U.S retail sales of video game hardware (consoles like Xbox), software (actual titles) and accessories summed $1.07 billion in October compared to $1.11 last year. Year to date sales stood at $11.07 billion, an 8% decrease from last year.

Moreover, hardware sales went down 26% to $280 million from $381 million last year. Both Nintendo and Sony were unable to sell as many consoles in the past two years, while Microsoft has actually increased unit sales of its console, Xbox, by 30% to 325,000 units.

Meanwhile, game software sales increased by 6% to $605 million. This figure does not include the latest record shattering release of Call of Duty: Black Ops, which holds the record of the highest release day sales with a shocking figure of $360 million.

Video games have always seemed a small niche market to many people, yet such figures clearly make this industry a lot more significant than the image of teenagers passing time in the basement. At a time where many people have little to spend on leisure, video games actually seem to hold strong sales. Perhaps with the advancement of technology multiplayer gaming is replacing other social activities.
Although quite expensive at first, video games offer a higher bang for the buck than many other pastime activities such as going to the movies when a ticket costs $12.

Obviously the slump in overall sales can be attributed to the lack of new products along with the ongoing affects of the recession, which continue to prevent people from spending money on unnecessary goods.

Video games will continue to revenue enormous sums of money in these troubled times in the retail industry as even the worried consumer can’t say a to a determined kid with the latest & greatest video game on his Christmas list…

Article source: http://www.google.com/hostednews/ap/article/ALeqM5gHaDv9mvelX2WsRRERcGrlQcsgBQ?docId=9c5894761e3442c79954705ad7ea46e1

Written by Michael Milner

Free Shipping...YES!

Electronic retailer, Best Buy Co., plans to offer costumers free online shipping for certain items until December. 21. Wal-Mart made a similar decision earlier in the month. Best Buy will offer free shipping for hundreds of thousands of items “including all CDs, Blu-Ray and DVD movies and gaming software and accessories”. However, products with heavy demand and values like iPads, laptop computers and major appliances will not be included in this deal. In fact, many retailers are starting to present consumers with free shipping as the holidays approach. Wal-Mart plans to have 60,000 online items with free shipping while Target this season will have the same deal for over 800,000 products on orders of at least $50.

In recent months, Best Buy has faced a steady stream of competition from Wal-Mart and other discounters. However, the company has still managed to posts growth for the year. In September, “the company reported a fiscal third-quarter profit that topped analysts' estimates and raised its forecast for the year”. As the approach, Best Buy will look to continue this growth.

_{http://online.wsj.com/article/SB10001424052748704648604575620482439021728.html?mod=WSJ_Retailing_leftHeadlines}

A lady can NEVER have too many bags

The hand bag and leather goods luxury store, Coach, reported a 34% increase in their net profits for it's first fiscal quarter. The company reported that it's adoption of lower price points, increased profit margins, along with expansion into developing markets have all contributed to the success. Currently Coach is hoping to expand into chinese market, recognizing the great opportunities in the booming chinese economy.

I believe that Coach is doing well not only because of it's adoption of lower price points, but due to the luxury trend in the market. Households with an income of over $100K have been spending at almost pre recession levels where as households with a lower income are still cautious when it comes to luxury spending.

Or perhaps the reason is as simple as: Some consumers are still willing to sacrifice other necessary expenses such as rent, for the latest, "cutest" bag.

Written by Michael Milner

Article source:
http://online.wsj.com/article/SB10001424052702303390704575575881503013638.html

Cheers to That

Trailing 52% to 48%, a Washington state ballot initiative wants to privatize liquor sales and change the beer and wine distribution rules. Large food retailers like Costco, Safeway, and Wal-Mart contributed financial support to the ballot. In fact, out of the campaign’s six million dollars in funding, Costco is attributed to nearly 4.8 million dollars of that fund. Brewers like MillerCoors and Anheuser-Bush gave funds to the opposition, “Protect Our Communities” as well. Together, the opponents of the ballot collected 9 million dollars. 

The ballot, if passed, would cause a revamp and overhaul of Washington’s trade regulation concerning alcohol. Brewers, distributors, and small businesses fear that if passed, the ballot would give large retailers an unfair advantage. These companies would gain leverage to lower prices and therefore, weaken the role of independent distributors in the supply chain. Unable to lower their own prices, small time businesses would not be able to compete with large retailers. However, supporters claim that consumers would benefit from paying lower prices.

While supporters are right that lower prices would benefit the consumer, at what cost to other retailers. Is fair to contribute funds to a campaign where other businesses have the potential to suffer severe losses? Costco and Wal-Mart at this time have already seen gains in profit over the last quarter while many small businesses have experienced losses. If anything, at most, large discount retailers should wait for full economic recovery before supporting a ballot like this.

http://online.wsj.com/article/SB10001424052748703506904575592430139576138.html

RadioShack Back on Track?

RadioShack has posted promising 3rd quarter returns, with net income rising 23%. Part of this comes from RadioShack's effort to liven itself up and move away from the recent reputation it has gained for being a "has been" in the era of technology. RadioShack is focusing more on smartphones and e-readers and it has begun calling itself "The Shack" so that it can connect more with a younger generation. Despite revenue changes, RadioShack's current stock price is still around where it had been. Some analysts expect it to rise as much as 40 percent, however. Hopefully RadioShack, or "The Shack" for short, can continue to hold on in this competitive technology era.

In a world that is continually advancing technologically, one would think that a company that deals with technology would not have any problems surviving. However, as technology grows, old products become obsolete very quickly. This can also happen to a company name as well. RadioShack fell a bit behind the times and then became associated with only the geeky crowd. "Radio" is also outdated, because people rarely listen to the radio as their main source of auditory or technological recreation. RadioShack is now moving in the right direction, though, by informally dropping the "Radio" from its name and moving its focus to more demanded products. That is what companies must do to stay in the game, especially in such a quickly moving field.

Catherine Reeves

Source: http://online.wsj.com/article/SB128907583106554497.html?mod=WSJ_Retailing_leftHeadlines

Halloween Saved The Month!

The October numbers are and they turned out good, but that was only after a very weak start to the month. With the warm weather starting at the beginning of the month, many consumers did not find their ways over to the stores to pick up the fall merchandise. It looked like sales were going to be much lower than anticipated, and that the sales of October of 2009 would be higher than the sales of October of 2010.

But halloween saved the month. Traffic found its way back to the stores as people began to purchase costumes, candy, and other halloween festive decorations. If we compare October 2010's numbers to October 2009's numbers, it is easy to easy that the economic depression is lifting. Macy's Department stores sales rose 2.5% compared to the sales of October 2009. And they are not the only store. Limited Brand, which owns Victoria Secret, were 9% higher than they were this time last year.

While we are a long ways away from completely recovering from the economic crisis of 2008, these numbers show a positive outlook on future. It shows that there is hope for a strong fourth quarter and holiday season. While it is too soon to see if this will happen yet, there are signs that having a holiday increases sales for stores, and can sometimes even save a month.

By: Ariel Levin

Article used: http://voices.washingtonpost.com/political-economy/2010/11/october_retail_sales_start_wea.html

Ahh what to do when even the basics become expensive

Rising inflation threatens to end nearly two decades of food price stability.  Prices for staples like milk, beef, cocoa and sugar have retailers like McDonalds, Kellogg, and Kroger signaling that consumers may bear the brunt of these rising costs. Demand for meat in China and grain in India and emerging economies are key factors in rising costs and therefore prices. Grain prices have risen in particular because of drought in Russia, speculative trade, and overall planting difficulty. Furthermore, food prices are rising faster than the rate of inflation.

Now, it is up to food executives to determine the speed at which they pass costs off to consumers; many Americans still fear unemployment and are looking for any ways to save. In 2008, when producers had to push costs over to consumers, shoppers “switched to private label products”. Therefore, some companies like Weis Market have implemented a price freeze on over 1500 staple items. “There’s a ceiling people are willing to pay for a meal” Greg Horon Gibson, director of operation for Gibsons Bar and Steakhouse states plainly. Companies will indeed have to choose whether to raise prices at the costs of consumer loyalty or place price freezes to attract frugal consumers.

Wall Street Journal  

Growing Monster

In an article published by the Wall Street Journal, it has been reported that Simon Property Group Inc. has done exceptionally well in 2010. The company, which owns 343 malls in the US, is the largest mall owner in the country. Despite accusations of antitrust actions by the Federal Trade Commission following Simon’s attempt to purchase Prime outlet company and adding 21 outlet locations to the company’s long list of assets. In addition to Prime outlets, Simon was trying to purchase the bankrupt General Growth Company, the second larges mall owner in the US. The company has showed signs of recovery, as it’s third quarter earnings more than doubled to $230.6 million, or 79 cents per share. Revenue increased by 5.9% to $979.3 million in the quarter. Moreover, occupancy rose to 93.6% along with the company’s higher renewed leasing contracts, which rose by an average of 2.8%.

Simon’s success concerns many retailers as the company’s growth increases the growing fear that it might poses to much power. If the company is able to acquire its competitors many retailers will lose their bargaining powers and take an unnecessary hit due to lack of competition. Although I find it wonderful that a company is able to show signs of recovery, it is questionable if such growth is not on the behalf of the many retailing companies that lease spaces in its malls.
Perhaps healthier competition could lead to reduced costs for the struggling retailing businesses, resulting in their own ability to recover from the recession.

Written by Michael Milner

Article source: http://online.wsj.com/article/SB10001424052748704141104575588010926207920.html?mod=WSJ_Retailing_leftHeadlines

Cotton Prices Could Get out of Hand

Apparel sales could be taking a major hit soon due to the rising cost of raw materials. Cotton, for example, is up 80% since the beginning of the year. Apparel companies have tried to withstand the price increases for as long as possible because they don't want to deter the already delicate state of consumer spending. However, as the prices continue to increase, there is almost no other choice. Though they are reluctant to raise the prices, it must be done, and as a result, certain clothing prices could increase by up to 10% in the next year. In order to survive, these companies need to raise the prices. But, that same price increase could push some companies out of business. It really all depends on which companies are large enough and strong enough to handle that type of hit to the system.

This is a difficult situation for retailers, and all businesses alike. The prices of raw materials are often out of anyone's control. They simply rise and fall according to the common supply and demand model. Natural disasters have eliminated cotton supplies. What can retailers do to prevent floods and heavy rains? They have no control over that type of disaster. What can they do but raise the price when the supplies are low? These increases come at an inconvenient time, too. The recessionary time period has seriously wounded the retail/high end apparel business. Consumers were reluctant to spend in tough economic times. In the past few months, however, numbers were showing healthy increases in consumer interest in those areas. Higher prices are only going to send that consumer interest reeling again. This is a critical point that could determine which business stay in the positive and which businesses struggle.

Catherine Reeves

Source: http://online.wsj.com/article/SB10001424052702304879604575582673135103404.html?mod=WSJ_Retailing_leftHeadlines

Saks' Italian Mogul

The article, “Italian Mogul Della Valle Boosts His Interest in Saks” came as a shock to me: 1) since I did not know that Saks Inc. was a U.S. retailer and not a foreign-retailer with a U.S. base and 2) that in this recession, there are investors trying to buy up shares of high end (and high risk!) companies. Della Valle comes as an angel investor to the company, since his now 19.05% share of Saks beats the now second largest shareholder Carlos Slim, who came as somewhat as a threat to the growth of Saks Inc.

Buying those shares come as a financial boost to the company as well as a great way to ensure product placement of the two brands Tod’s and Roger Viver, owned by Della Valle. To those with the capital, it may be wise to buy shares in these companies hit by the recession but with the potential to work through it all. Saks has not had a dramatic increase in profits, but has been seeing positive sales monthly for the past few months—a hopeful sign to profit-seeking investors in high end retail and really, any other industry.

By Leya Abebe

Article found at:

http://online.wsj.com/article/SB10001424052702304023804575566160904696050.html

Investing in India

“In a speech in New Delhi Tuesday, Mr. Duke [chief executive of Wal-Mart Stores Inc.] argued that permitting foreign ownership of retail stores like Wal-Mart in India would reduce prices, create jobs and modernize the country’s agricultural market and supply chain.” Many companies have expressed interest in opening international operations in India, but haven’t received that with the full support of the government of India, the CEO of Wal-Mart being the most recent representative. So far, the government only allows foreign companies to enter the market “through franchise agreements or as wholesalers or distributors, and usually only as part of joint ventures.” This does not allow for the ideal marketing and control brands want to portray at times.

India is a large market with an estimated potential value of $400 billion. However, I don’t believe it’s the market companies want to spend most of their energy breaking through. The culture is very strong there and mom-and-pop shops reign supreme. For companies to really want to expand in India, they would need to tailor their operations, stores, and selling practices to mimic closely the practices already in place by other native businesses. In the U.S., trends are much easier to introduce and find a following. In India, that is not the case. Trends popular elsewhere will need to be treated like grassroots political campaigns, expecting little but giving a lot until change is made.

By Leya Abebe

Article found at:

http://online.wsj.com/article/SB10001424052702303891804575576252700008116.html

Ebay on the rise?

The online retailer Ebay is going through major changes in order to increase sales during this upcoming holiday season. With much of the same properties as its competitor and online retail giant, Amazon.com, Ebay has changed its focus to developing its technological foundations. Some of the projects they’re working on is to provide a whole new home page that is more attractive to the online customer and building a product catalog. The homepage will provide recommendations based on previous searches and for a few technological devices, pages consisting of certain models of those products have begun to arise, “consolidating the sometimes thousands of different listings by sellers and highlighting the best deals at the top.”

Here is another online retailer trying to revamp their image and increase their sales. Looking at the homepage, I feel as if Ebay re-designed the page to look more like other online retailers: logo on the top left, horizontal menu bar, drop-down menu on the left, picture in the middle, a few links on the left, and other pertinent information below. The page looks much cleaner and easier to navigate, but I’m not impressed. I’m impressed with what this company is trying to do to make the site more user-friendly because already, there is a great customer following, and I feel like this will increase brand loyalty as well as attract more customers. I have often heard people selling their ideas on how to get rich quick with eBay. These new changes may add to the next volume of e-commerce trading secrets. 

By Leya Abebe

Article found at:

http://online.wsj.com/article/SB10001424052748703817604575585320835209814.html?mod=WSJ_Retailing_leftHeadlines#ixzz144pORk00

Black October

Everybody knows the day after Thanksgiving is called Black Friday because it is the biggest shopping day of the year. Stores open their doors as early as 4 in the morning and have amazing deals all day long. Well shoppers make your way over to the stores because the prices you would see for black friday arrived in late October this year. Sears, Wal-Mart, Amazon, and Target have already started their sales for the holiday season.

Sears had a "Black Friday Two-Day Doorbuster sale" this past weekend with amazing deals for the whole family. And don't think they are the only store! Amazon's entire electronics department is on sale. Kindles are selling for as little as $139 and yes, there is free shipping. Also, TVS, blue-ray dvd players, and much more are selling at very low prices. Toys R Us is making their entire 80 page holiday toy book on sale NOW. All 80 pages are on sale next weekend.

The retailers are making these big moves now because they know that consumer's money is tight. They want to have the best deals now to get the business and take the consumer's money before another store does. I have to admit this is very smart; however, its kind of like the idea of playing christmas songs before thanksgiving. It drags on the holiday season, and makes it seem like getting to Christmas is taking forever!

But for the discount shopper, these sales are making you sprint to your car and speed to the stores. But let me warn you, these deals will last and I would not be surprised if the prices went EVEN lower on Black Friday. Why? Because the stores want to attract as much attention as possible and because other stores will have low prices. I guess we will find out as the month goes on.

By: Ariel Levin

http://www.nytimes.com/2010/10/28/business/28friday.html?ref=retail_stores_and_trade

The Touch, the Feel, Cotton the Frabric of our Life

The price of cotton has fallen the most it has in 15 years. Though originally predicted to rise by Texas cotton watchers because of unfavorable weather plaguing the state, the crop remained unaffected and the price fell 4.6%. Furthermore, instead of loosing 50,000-150,000 bales of cotton, the USDA believes that Texas alone will produce 8.9 bales of the fiber. With the US being the world’s largest exporter of cotton, prices rely heavily on how much the US can grow. Even now, there is not enough cotton production as economies is developing countries continue to expand and mature.

As China, the World’s second largest cotton consumers, continues to buy cotton at a rapid rate, the price of cotton becomes more unpredictable and even now the government is having to auction additional bales of cotton. The USDA predicts that at this pace, stockpiles of this commodity in the year 2011 at a 15-year low. Some countries, like India, because this fear of future limited supply of cotton, have slowed down their exporting and have given priority to their own domestic companies who need cotton for their products. These low cotton prices, lower input prices for producers and lower output prices for consumers. Though, once cotton stockpiles are diminished, the price will surely increase. 

Countries with a limited supply of cotton will have increased supply inputs costs, while other countries with high cotton resources will gain a competitive advantage because their input costs will be less in comparison. So, for all you producers, buy cotton and lots of it now if you can. 

Wall Street Journal 

Franchises Going Mobile

Remember the good old days when the ice cream truck would roll down the street and all the children would chase after it? It seems that the ice cream truck concept has actually evolved into a profitable venture for some franchises. According to Robert Stidham, president of Franchise Dynamics, LLC, a number of franchises may be taking to the road next year. Their trucks will be equipped with sinks and ovens -- entire kitchens even -- and they will patrol the streets with their products. Stidham declined to name which national food franchises may be entering this venture, but smaller chains such as Cousins Submarines, Inc. and Toppers Pizza Inc. have already started. Sites like Twitter, Facebook, and FourSquare have easy-access tracking devices so that customers can track where the trucks may be. This will be like a traveling extension of the brick-and-mortar store. Franchisees can come to their customers sometimes, instead of their customers coming to them.

This is revolutionary in a few ways. First of all, it can be good for the franchises in that the truck is like a mobile billboard. It is great advertising, so even if they do not provide services to everyone who happens to be on the street, they are still getting their name out further. Also, these traveling trucks are still very unique, and there is something fun and cool and perhaps nostalgic about getting food out of a truck on the street. The franchisee must still pay the same royalties as they would in their store, but it is a nice addition to the business. It should be interesting to see if the traveling truck concept continues to grow or if only a few franchises will catch on to it.

Catherine Reeves

http://online.wsj.com/article/SB10001424052702303341904575576760919368160.html?mod=WSJ_Retailing_leftHeadlines

Consumer Confidence Barely Rising

With the economy in a gloomy state and the stock market at a slow increase, it is easy to understand why consumer confidence is not through the roof. Most people are still skeptical about the future and their job security. For that reason, they are choosing to save rather than spend. Predictions are showing that this holiday season will hopefully bring consumers out of their shell and spend. However, this will only happen this the retailers promote their products correctly. If retailers this holiday season give discounts, advertise, and have the most wanted products this holiday season, then they are bound to do well.

While the stock market is recovering from the economic crisis in 2008, this does not mean it is booming like it was before. It is growing at a slow steady rate. What is also showing this that Wall Street and Main Street are not connected. Main street, where the consumers are, still have fear for job loss. With the housing market decline, many house prices are still going down in today's economy.

Researchers are also hoping that this holiday season will give some consumers a bit more confidence and realize that the market is on a turn around. The Dow Jones Industrial Average is up 7.1% this year. This means that many people with money invested in the stock market are starting to make some of the money they lose back. Hopefully that is something to be confident about.

So it is really up to the retailers this holiday season if they want to get consumers spending. Good deals and having the best products are going to bring them into the stores so that is one place to begin. And hopefully with the future looking a little more positive, consumers will gain more confidence and begin spending again.

By: Ariel Levin

http://www.washingtonpost.com/wp-dyn/content/article/2010/10/26/AR2010102602234.html

Smaller Stores a Big Concept for Wal-Mart

Wal-Mart has always been known for its gigantic, suburban, 180,000 square foot supercenters. Given certain plans, however, that may not be the case forever. Now, the chain is about to make an about-face and try to set up a base in more urban areas, using much smaller stores. This is because Wal-Mart has essentially exhausted its suburban base, while it has not at all forayed into major cities such as New York, Chicago, or Los Angeles. Obviously, the city is no place for large, warehouse-sized stores. So, Wal-Mart is going to try to implement some changes. Wal-Mart plans to experiment with some smaller stores whose primary products are groceries. This way, they can target the blue-collar workers, because in their movements through the recession, they focused more on middle class workers who were "trading down." Soon, Wal-Mart's "every day low prices" may be found everywhere as well.

Obviously, this is a HUGE step for Wal-Mart. In order to remain successful, they need to extend their reach as far as they can. Right now, sales for Wal-Mart are stalling, and this may be exactly what they need to jump start their profits again.

However, there are still many obstacles as well. Many big cities still oppose Wal-Mart because it has had labor disputes and other ethical troubles in the past. Target and Best Buy have already made moves into the cities with no problems, but Wal-Mart is not approved by everyone. Other outlets like Dollar General or Aldi's are also great competitors that Wal-Mart has to look out for. Moving into the cities may not be the easiest road for Wal-Mart, even though it will have its pay out.

Wal-Mart, just like every retailer, will always have to face problems and obstacles, but if it can overcome these, it will find great success in the cities. Urbanization will be a change, but it will definitely be for the better.

Catherine Reeves

Sources: http://online.wsj.com/article/SB10001424052748703673604575550243762557882.html?mod=WSJ_Retailing_leftHeadlines

Nike: Just Do It

Aaah Fall: changing colors, dried leaves, hot apple cider, pumpkin carving, and one of America’s favorite past times, football. Now in the middle of its highly coveted season, the NFL has decided that beginning April 2012, seven different companies, minus current licensor, Reebok, will share the rights to the league’s apparel licensing. Nike will have the NFL’s on-field apparel rights. Nike will be responsible for game uniforms and base layers, sideline personal apparel and fan gear. And while the deal may not give Nike a huge financial boom, the company’s infamous check logo will be continuously visible to millions of viewers as the camera switches shots from players to coaching staff. Marketing wise, Nike will gain tremendously from their agreement with the NFL. As Nike’s Charlie Denson stated, "Nike's position in our largest market in the world will be stronger then ever. We believe our agreement with the NFL enhances the Nike brand, and provides significant opportunity to drive growth across the business."

In addition to Nike, this agreement will have advantages for the NFL and fans alike. Due to weak ticket sales, the NFL’s decision to split apparel rights will increase revenue. Reebok paid $300 million for its 10-year deal with the league, but some estimate that Nike will pay 1 billion for its on-field rights. Furthermore, fans will have a larger selection of merchandise and from different companies to choose from. Nike is the “just do it” company, what is Reebok? Nike is the gear of champions and the NFL wants its players and fans to feel that way.

http://online.wsj.com/article/SB10001424052748703440004575548144277455632.html?KEYWORDS=retail 

iPad everywhere!

On October 12th the Wall Street Journal reported that Apple’s iPad would soon be sold in Wal-Mart. The giant retailer was slow to negotiate selling rights from Apple, falling behind Best Buy, which began selling the iPad ever since it was launched in April, and Target, which began carrying the iPad last month.
Wal-Mart announced that although it is late to carry the product, it would make up for time lost with sales.

Wal-Mart is expected to sell the iPad in more than 2300 locations by mid November in time for the holiday season, showcasing the iPad in special interactive displays. Despite the company’s reputation to “roll back” prices, the retailer will be selling the iPad with no discounts. The cheapest iPad, a 16-gig wifi model with no 3g capabilities has a hefty MSRP of $499.

Despite the competition and inability to increase profit margins due to Apple’s strict pricing, I recognize Wal-Mart’s interest in the iPad and believe the retailer will generate great profits. The profits won’t necessarily be the low margins of selling the actual iPad but rather the accessories that compliment it.

Furthermore, it is becoming increasingly obvious that the iPad has become the holiday’s hottest product. Analysts now believe that Apple will sell between 11 to 12 million iPads this year, which is double than what Apple expected to sell.
Wal-Mart slow response to consumers demand for the iPad must of resulted in lost profits, but as mentioned above, it’s hard to compete with over 2300 locations.

Finally, I just have to mention that it is very interesting to watch such a craze for a product that costs over $500 during one of the worst economic times this country has ever seen. Could this be another sign of hope?

Written by Michael Milner
Article source: http://online.wsj.com/article/SB10001424052748704518104575546570833654304.html?mod=WSJ_Retailing_leftHeadlines

Say Goodbye To Blockbuster?

It was announced this past week that the movie store Blockbuster may be closing down even more of their locations. After filing for bankruptcy, these movie stores are trying to find a way back into the market to compete with the new competition. Between Netflix, movies on demand through certain cable providers, and Red Box, Blockbuster has taken a hit. What makes Netflix, movies on demand, and Red Box more likable to the consumer is that they are more convenient. Netflix delivers movies right to your mailbox, on demand allows you to select and watch a movie from the comfort of your home, and red box is located at convenient neighborhood retailers, like gas stations or food stores, and it only costs a dollar per night to rent a movie. At Blockbuster, not only do you have to be a member to rent movies, but they cost about $4, and there are late fees.

Right now, there are about 30 blockbusters in Washington Metro area. Blockbuster headquarters are saying that they are going to keep these locations open while working their way out of debt. However, this seems unlikely. Blockbuster spokesperson Patty Sullivan says the company's goal is to "enhance the overall profitability of operations". With having already 148 stores close, this seems to be the best way to increase money.

Blockbuster needs to find a way to reestablish themselves. Going out to a video store and renting a movie is obsolete. They need to find a new way to rent movies to consumers conveniently and inexpensively. Maybe if they took their business online, like netflix, they could compete better. Or what if they created packages where a consumer can have the whole video store on their TV for a low price each month? Either way, there needs to be some sort of change in their sales strategies, and they need to make them fast if they wish to remain in the movie selling business. What other ideas do you guys have for Blockbuster in terms of reinventing themselves.

Written By: Ariel Levin

Article Used: http://www.washingtonpost.com/wp-dyn/content/article/2010/10/10/AR2010101003147.html

ho ho hope?

According to an article published October 7th 2010 in the Los Angeles Times by Andrea Chang:

There is some hope for retailers this coming holiday season. The retail trade group released a report this Wednesday projecting a 2.3% increase of retail sales reaching $447.1 compared to last years holiday season. The increase is considered modest since it falls under the 10 year average of increase of 2.5%. However, although the fore casted increase may be lower than 2.5%, it is still better than last year’s holiday sales increase of 0.4% and the 3.9% decrease experienced in the holiday season 2008.

It’s not surprising that analysts are only projecting a modest increase of sales. Consumers are still concerned about the unknown path of the economy leading to their hesitance to spend money.

In addition, the raise of unemployment in a turbulent economy means that people are forced to adapt to a life of careful spending. These days many consumers will choose between the seasons latest hot item and paying the bills. It’s not easy to completely remove the shopping habits set in American society and retailers are hopeful to gain on that.

I believe that as last year, retailers will do anything they can to seduce the consumer to their stores. Record high competition will prove that the coming holiday season will exceed analysts expectations, and perhaps generate further hope in the troubled retail industry. The competition is rough, but the gains are still high.

Written by Michael Milner

Article source:

http://www.latimes.com/business/la-fi-holiday-forecast-20101007,0,2818101.story

What If?

As the holiday slowly approaches, Neiman Marcus unveiled its 84^th Christmas Book on Tuesday. The luxury retailer displayed some of its extreme items in its downtown Dallas store. Some products available are a $250,000 houseboat for two, a $15,000 edible gingerbread playhouse and a $125,000 private party organized by celebrity event planner Colin Cowie for its wealthier, and quite possibly crazier buyers. However Neiman also “respects” costumers with smaller budgets, as half its products, including scented candles and tweezers incrusted with crystal, are under $250. 

Cleary, the average consumer will not be able to afford many of the products in Neiman’s catalog. The products are over priced and even though it’s the holidays, it’s too outrageous and unnecessary for most people. However, in my opinion, Neiman realizes that its catalog will not meet the demands or needs of many buyers. Instead, the catalog is supposed to trigger people’s what ifs. What if I could buy a special edition Camaro or a personalized glass sculpture by Dale Chihuly? The holiday season is the only time when it’s the norm to fantasize and maybe, even make your dreams into realities.

Furthermore, while Neiman’s catalog won’t be a hit with a large number of buyers, the high cost of its items will way out this fact. It’s not just about the number of buyers, but how much you can sell your products for. Neiman’s catalog is excited and has products in there that not many retailers would offer. Even though not many people will buy, they’ll enjoy looking at crazy gifts and be amazed at how ridiculous some of them are. So even with out buying any of the products inside, Neiman Marcus still leaves its costumers happy.

http://www.msnbc.msn.com/id/39525453/ns/business-retail/ 

Target Begins To Sell Ipads

A popular topic on our blog is following the success of Apple's new product the Ipad. This mini computer device has been making shockwaves since its release onto the market this past April and has sold almost 3.3 million products. Before, if you wished to purchase an Ipad, you would have to go to your nearest Apple store or Best Buy. Now, Target will be selling the Ipad, and they are hoping that by having this new hot product it will bring in sales this holiday season.

While Target has not taken a huge hit during this economic recession, having this product will definitely draw new attention to their stores. Also, having the product sold at more places is good for Apple. Because it will be easier to access, more people will spend $500 for this new product. Not only will sales increase for Apple, but it attracts more people to target's stores in the hopes that they will buy other products while there.

The only person who lose with this new deal is Best Buy Co. Best Buy has been carrying the Ipad since its launch. Because it was the only other place other than the Apple Store to be carrying this product, they were making huge sales off this. Now, they have Target, a store that carries more than just electronics at low prices, competing with them. It is easy to say that Best Buy may be feeling a bit of a sales drop due to this new deal.

All in all, by selling the Ipad this holiday season, Target will have the opportunity to increase their sales on this hit product. And even though Best Buy will have some more competition, by still being one of three carriers of the product means that they will still have plenty of business.

Ariel Levin

Article Used: http://www.washingtonpost.com/wp-dyn/content/article/2010/10/03/AR2010100302269.html

New Competition for Amazon.com

Amazon's consistent success has caused many retailers to band together to try to mimic one of Amazon's greatest strategies. The name of this new endeavor is ShopRunner, and the service will offer many of the same benefits as Amazon's Amazon Prime, except also with free returns. ShopRunner will have its own website but will also be available through all participating retailers' sites as well. Like Amazon Prime, membership costs $79 but includes unlimited two-day shipping. Toys "R" Us, Dick's Sporting Goods, PetSmart, and Barnes and Noble are just a few of the retailers teaming up to join ShopRunner.

This new development could be revolutionary in many different ways. First of all, the new site is likely to cause problems for Amazon. For the longest time, Amazon was the premiere outlet for online shopping, and the deal with Amazon Prime drew in a great numbers of customers. Its increasing support base is likely to drop off now that there is another option that also offers free returns. Additionally, ShopRunner will probably work miracles for some of its participating retailers. Since buyers are paying a 79 dollar membership, they will be much more inclined to visit the site more frequently in order to get the most out of that investment. These "repeat customers" are sure to up the profits for a lot of retailers who might not have even seen those consumers in the first place.

Luckily for some companies, ShopRunner does not operate exclusively, meaning that retailers that already participate with Amazon can still participate with ShopRunner. This should also be helpful to companies such as Barnes and Noble.

Of course, there is also the risk that too many people will sign up for membership all at once. This has actually shown to be harmful in the past. When Amazon Prime first opened, profits dropped significantly, probably because the expense of operating was so high. This could always happen to ShopRunner as well. All in all, though, ShopRunner looks like a pretty good idea that will not only put Amazon to the test, but create better competition in the online-retail outlet and open up more opportunities for shoppers.

Catherine Reeves

Source: http://online.wsj.com/article/SB10001424052748703843804575534062509989530.html?mod=WSJ_Retailing_leftHeadlines

Advertising that's Effective...or Not?

Small businesses like online retailers such as Mountain News Corporation and physical stores such as Birds Barbershop have found a new way to minimize advertising and marketing expenses. By partnering with larger firms in ad campaigns, smaller companies are paying nothing to greatly less than they expected when trying to spread the word about their businesses. Mountain News Corp. manages a site called OnTheSnow.com that “tracks snow conditions for ski mountains...got a burst of national exposure without spending a penny last winter when Apple Inc. chose to feature Mountain News’ mobile-phone app on an iPhone television commercial.” Birds Barbershop “launched an advertising campaign with Lone Star Beer, which is owned by Pabst Brewing Co.” The owner of Birds would not have been able to run one of their ads that cost $900 without a partner. “‘I wouldn’t make that leap alone,’ he says.” More examples of small businesses, including entrepreneurs, taking advantage of nearly free advertising are mentioned in “Marketing Strategy: Buddy Up” by Emily Maltby.

Similar to Emily Maltby’s article on business-to-business based advertising, Jessica Vascellaro’s article focuses on the expanded advertising of businesses through the use of social networking sites. Apparently, news organizations are researching the benefits and trade-offs of investing in campaigns on social networking sites such as facebook and twitter. Is non-traditional advertising such as this really generating revenue or are companies unknowingly soliciting information about their companies that could be used elsewhere to generate profit? Newspapers are already struggling with managing sales in print and with the switch to online, more content is becoming available for free or less than what they would normally have sold for in print. To place more excerpts on different sites might only be diverting attention from the main websites of these companies.

Written by
Leya Abebe

Supporting Articles:
“Marketing Strategy: Buddy Up
Small Companies Ride Coattails of Larger Firms to Reduce Advertising Expenses”
By Emily Maltby
http://online.wsj.com/article/SB10001424052748703743504575493930863118638.html?mod=djemSB_t“News Sites Study Social Media
Publishers Seek Insight on User Behavior; The Best Time to Send Out a Tweet”
By Jessica E. Vascellaro
http://online.wsj.com/article/SB10001424052748704394704575495960178903180.html?mod=loomia&loomia_si=t0:a16:g2:r1:c0.111237:b37368508

Where do they want to go?

Switching gears from analyzing moves made by companies to garner profits now to the perspectives of their future employees themselves. I was surprised by an article posted on BusinessWeek called “Google Tops Grad Pick for Top Employers.” The ranking is based on "the responses of more than 130,000 business and engineering students in 12 major global markets who told Universum where they dream of working." Of the businesses they could work for, 120 were named and they could pencil in any company which was not on the list. Google leads the Universum ranking for  the second time in a row followed by four accounting firms: KPMG, Ernst & Young, PricewaterhouseCoopers, and Deloitte, and five other companies which rounded out the top ten: Procter & Gamble, Microsoft, Coca-Cola, J.P. Morgan, and Goldman Sachs.

While recovering from a recession, I could not believe that Goldman Sachs would come out so high on this list. Sachs played a dramatic role in the housing crisis, but to those questioned for the purpose of this survey, is still an attractive place to work. Considering that there are barely any companies on the list who are less than a decade old, I conjecture that holding a position in these companies contributes to growth in that field.

Google considerably and the rest of these companies on this list have a "unique corporate culture." Google specifically gives "free food and haircuts and lets employees bring their dogs to work" among other things. We all seek a feeling of leisure from doing the work we do. Companies are winning over college graduates and slowly everyone by providing that feeling directly to us.

Written by

Leya Abebe

Article:

http://www.businessweek.com/bschools/content/sep2010/bs20100928_433243.htm

Toys R Jobs!

According to a recent article published in CNNMoney.com by Aaron Smith and Ben Rooney:

Toys R Us and Best Buy announced Tuesday; that they are about to hire tens of thousands of new employees for the upcoming 2010 holiday season. Toys R Us announced it would hire 45,000 seasonal employees; Best Buy will hire 29,000 seasonal employees.

Toys R Us will divide its 45,000 new recruits between its 587 current locations and the 600 temporary locations about to open across America in various shopping centers. During the non-holiday season Toys R Us employs 45,000 and so the company is seeking to double its workforce ahead of the holiday season.

The United States is a huge retail market due to the size of the population. However the shopping habits of American consumers make the retail industry in the United States even more valuable. Americans love to shop, and what better time to shop than Christmas and Hanukkah: two major holidays with the retail enhancing traditions of giving gifts. The holiday season in the United States isn’t matched in any other country on Earth.

Furthermore, most retail companies in the United States rely on the holiday season, as it’s by far the greatest source of income. The month of December can generate as much as six months during the non-holiday periods. The significance of the holiday season is clearly seen in Toys R Us and Best Buy’s hiring announcements. Toys R Us will double it’s entire workforce as well as the company’s locations, all in the effort to sell as much toys as they can while the demand is at it’s highest point.

Moreover, Toys R Us will give many of its employees an opportunity to work extended hours and during the weekend. Therefore, many of the company’s employees will be able to save furthermore enabling them to spend money on gifts and so stimulating the economy even more.

If Toys R Us are lucky enough, a new toy may become the holiday must have leading to an even higher demand for toys.

Although I am no longer a child, this recent publication did in fact find it’s way to my heart. The combination of new job opportunities at a time where unemployment in America is nearly 10% and toys was just too irresistible.  

 Written by Michael Milner

Article source: http://money.cnn.com/2010/09/28/news/companies/toys_r_us_jobs/index.htm

CNNMoney.com 

Producing Domestically, Expanding Internationally

Inditex, a Spanish based retailer, has experienced a 68% increase in profit this year as in plans to expand its business to five more countries and tap into the e-commerce market. Growing its store base anywhere between 8-10% annually, Inditex Chief Executive Pablo Isla expects to “see big potential” fulfilled as the company expands. Inditex’s rapid growth can be attributed to its cheap supply inputs and its ability to respond quickly to consumer demands. Nearly half of all Inditex’s products are made in Spain, thus cutting down on transportation costs and production time while also allowing the company to adapt to new fashion trends. Furthermore, Inditex is in a prime location to receive information on trends occurring in the fashion world.

Early in the blog, we mentioned that many American based stores were suffering from slow growth do to the recession and therefore frugal consumers. However, Spain’s economy as a whole has experienced a slower growth rate than the United States. Spain lacks the capital and technology that the US has, so why is it that Inditex is citing greater profits than American companies? First, I attribute Inditex success to, unlike many US companies that use offshore production, Inditex manufactures half of all its goods in is base country of Spain. Thus not only does Inditex save time and money, but is also facilitating its country’s economy. Secondly, Inditex utilizes a fast-fashion model where it, constantly updates its stores to sell the lasted fashion trends where as US retailers wait to see if that fashion has any longevity. Therefore, I conclude, that while offshore production may seem cheaper, producing goods domestically is not only beneficial to one’s company, but also its country’s economy. Secondly, adapting to rapidly changing consumer demands is a necessity for any company to survive in today’s ultra competitive markets.

Wall Street Journal, Print Issue, 23 September 2010, Coporate News Section, pg b3 

Missing the Holidays Never a Good Thing

One of Nintendo's most recently anticipated products will not be sitting under the Christmas tree this year. The release date for the Nintendo 3DS, a revolutionary handheld gaming device that uses 3-dimensional graphics, has been changed to sometime in March 2011. This means that the device will not be available during the holiday season, the prime consumer buying time. According to the Wall Street Journal, Nintendo's expected profits for the fiscal year ending in March will fall severely. The projected profit is now around 90 billion yen, down from nearly 200 billion yen. This is of course partially due to the weakness of the yen, but also mainly due to the fact that their key item will not be placed into a hot market. It wouldn't be practical for Nintendo to try to speed up the release though - there would not be enough items in stock for them to pull off such a stunt for the holidays. This is certainly a case of bad timing for Nintendo.

This case of bad timing will most definitely transfer to electronics retailers such as Best Buy. Any retailer who would have been able to carry the Nintendo 3DS is going to lose out on a significant profit. There is no doubt that retailers depend upon the holiday season, new hot products, and willing buyers to get through the year with a substantial profit. The 3DS's original release projection meant that a hot new product would be arriving during the holiday season - the time when everyone is buying. Consumers will still be enthusiastic about the product in March, but not nearly as much as they would have been during the holiday season. This could end up being detrimental to some retailers.

As the 3DS misses out on the holiday, Nintendo and many retailers will miss out on the profits.

Catherine Reeves

Source: http://online.wsj.com/article/SB10001424052748704116004575521143661439792.html?mod=WSJ_hps_MIDDLETopStories

Cuteness All The Way

For retailers, this holiday season is crucial for their survival in this economy. With consumers buying minimum amounts of toys, the toy industry has taken a hit with the recession. Many companies, who already make most of their profits off the holiday season, are trying to find the right balance of toys for children of all ages. However, there is one thing that is definite this holiday season, and that is that the cute toys are most likely going to "rule the holiday toy roost".

Toys R Us, a huge toy store, came out with their 2010 Hot Toy List a few weeks back, and most of the toys on the list were under $25. Because parents are on tight budgets, toy makers are producing cheaper toys that way they sell more products. From pillows that turn into pet stuffed animals to Mattel Inc producing singing dolls, these toys are under $25 and will make children very happy.

The predicted popular toy of the season is the Zhu Zhu Pets. Cute and adorable, Zhu Zhu pets are, "toy hamsters that squeak, zoom around on wheels and sell for just $10". Their cheap prices and cuteness make them popular with the parents, and every kid wants one. Because every kid wants their very own Zhu Zhu Pet, retailers are all carrying them. So where are the parents going to shop this year. Simple: the will shop with the store who has the product in stock. This holiday season, "the difference between being in stock or out of the year's must-have playthings" will make or break the toy stores.

So remember when buying toys this holiday season, go cute!

By: Ariel Levin

Article Used: http://www.washingtonpost.com/wp-dyn/content/article/2010/09/21/AR2010092100995.html

Social Impacts

The Green Earth Market is an online retailer of environmentally friendly goods which entered the retail industry officially in 2006. This retailer sells products for babies/toddlers, books, candles, fragrances, diffusers, clothing, bags and accessories, home and office supplies, jewelry, and gifts and seasonal goods that are “high quality and better for the environment.” Those products must meet a criteria established by the company stating that those products be: produced in North America, of natural, organic or recycled materials, from Fair Trade sources, or benefiting disadvantaged groups, are energy efficient, encourage re-use and/or discourage use of disposables that create waste, and/or are closest to these criteria of the products available to the company.   

The Green Earth Market has not been highly publicized in the news, but it should. What this company offers touches on so many social issues that it may impact the industry with its growth.

As a society we are becoming more responsive to environmental issues and with the recession we are recovering from, issues of social responsibility and ethics within the business world. More and more, companies are revising or even creating policies that address the responsibilities a company must incur to manage or correct for externalities not only facing the consumer but the physical environment as well. For the Green Earth Market to emerge when it did, as possibly more have, represents a push from this social movement in order to influence more change in the lifestyles of the public.

I admire a few things about how the Green Earth Market runs its business. It provides lists of environmentally-friendly products but also the manufacturers that produce them on the website. Market is spreading the word that there are many companies in the business of improving the health of our environment. How this company deals with being socially responsible is also mentioned in its mission statement, but implicitly. Green Earth Market runs as a Christian based business. Just following the principles of the religion promotes honest service, a point it explicitly states. To expand upon this point, the owner is also reaching out to a specific community creating a closer relationship of the issue at hand, improving the environment, with already set ideals, another way to enhance the impact of the social movement.

To address how the competitive landscape of the retail industry has changed, marketing with making a social impact in mind has become a competitive advantage for most companies. To distinguish itself from others by offering a “higher” level of quality, quality that gives back, is in effect a tool to manipulate market demand now. This may mean going against the economic decision rule, making the decision that garners the most benefit, but this investment may in turn increase future profits, send the right message, while improve the quality of our lives so much more.

Written by

Leya Abebe

Contributing info found on:
www.greenearthmarket.com

Woot: Offering Something New, One Random Sale at a Time

One of the up-and-coming aspects of the industry of retail is the aspect of "social shopping." A new internet retailer called Woot.com is a one-deal-a-day website that sells excess inventory products for very discounted prices. The products can vary from kids' toys to digital cameras, to HDMI cables or t-shirts. Founded by Matt Rutledge, the company was recently bought by Amazon.com. Though the two are going to continue working independently, Woot may gain some more influence due to the connections it is forming with such a high-profile site.

Since the creation of the main site, Woot has also created a few subsites/spinoffs, such as Woot Shirt, Wine Woot, Sellout Woot, Kids Woot, Deals Woot, and Moofi Woot. These sites have gathered quite a cult following, as they offer a variety of very random products daily, at very good prices. Of course, the site follows its tagline, "One day, one deal," meaning that there is only one item per subsite per day. Products are never announced beforehand either, so it is up to faithful checkers of the site to take the initiative to buy the item.

This way of selling a product may not necessarily revolutionize the way that consumers shop, because of the fact that it is impossible to know what the product being sold is until it is posted on the site. Therefore, the site will likely not cause competition or interference with main online retailers. Still, it has the potential to compete with other similar deal sites, such as overstock.com and others.

As of right now, the site has no customer support service, and does not post sales figures until the item has sold out. It also limits purchases to 3 of the item per customer. It should be very interesting to see how these habits change as the site gains more recognition. The site is unique in its single deal per day sales model, and in its witty blog posts and close community following. Will Woot continue to grow and prosper? Will Woot cause other online retailers to implement a one-deal-a-day special to their sites? I think that Woot is still fairly obscure, but as long as it keeps gaining a tight group of followers, it will be able to continue to add a unique spin to the competition within the retail industry.

Sources: http://online.wsj.com/article/SB10001424052748703426004575339320497483414.html
and Time's Coolest Websites 2005: Shopping

Catherine Reeves

When Retail Makes You Real Money

       

According to an article released by the news agency Reuters September 20^th 2010 by Anna Ringstrom and John Acher:

Danish jewelry maker and retailer Pandora has recently offered $2.16 billion dollars in public offerings. Pandora announced that shares would begin trading October 5^th 2010 at the Danish Copenhagen bourse. The move towards becoming a public company will enable the company to continue its expansion while “also give a partial exit to its private equity and family owners” (Reuters, Ringstorm/ Archer).

In addition,

According to an article published Bloomberg Businessweek August 31st 2010 by By Zijing Wu and Nikolaj Gammeltoft:

PANDORA made a profit of $171 million and was considering the public offering in order to expand into the Eastern European and Brazilian markets.

In 2006 Pandora shifted from a jewelry manufacturer to an international jewelry retail chain, while maintaining its own jewelry-manufacturing factory in Thailand. According to the company’s website, the company sells it’s jewelry in 47 countries, offering over 1,800 unique jewelry designs. The company’s business model is consisted of selling the jewelry through its 260 concept stores as well as through other jewelry stores. Currently the company is most known for its silver and gold charm bracelets, which have become extremely popular in the US market.

The concept of letting the consumers choose and make their own product has now become a popular trend within many jewelry retailers in the United States and the entire world. These days most jewelry stores offer some sort of customizable jewelry product. Those who were quick to recognize Pandora’s success either chose to carry Pandora products or began marketing their own beaded customizable jewelry. Those who failed to recognize the new trend truly “opened Pandora’s box” and lost a great amount of customers and revenue resulting in many cases in the inability to compete, and at times bankruptcy.

I admire Pandora’s transition from a jewelry manufacturer to a jewelry retailer. Pandora was able to transform an entire industry in less than five years while greatly increasing the company overall profits and quickly became one of the most famous jewelry retailers in the world.

Written by Michael Milner

Sources:

http://www.reuters.com/article/idUSTRE68J0Y320100920

http://www.businessweek.com/news/2010-08-31/axcel-said-to-retain-jpmorgan-nordea-for-jeweler-pandora-s-ipo.html

http://www.pandora.net/en-US/pandora-company/about-pandora