BoR Daily Digest | FashionGPS at NYFW, Mobile Payments, The Buckle’s Strong Sales Performance, Beyond Store Closings, Is Physical Retail Doomed?


Fashion GPS Breaks Into The Notoriously Tech-Averse Fashion Industry Just In Time For Fashion Week –

“[…]the fashion industry is ancient, and is thus quite averse to new technology of any kind. However, a company called FashionGPS has chipped its way into the world of fashion offering a one-stop destination for designers, editors, retailers, etc. to communicate during the most important week of the “We’ve been working on this for seven years,” said founder and CEO Eddie Mullon. “But only recently has the fashion industry become ready for this kind of tech.”

MOBILE PAYMENTS: What’s Taking So Long, And Who’s Going To Win? –

“[…] already five years into the smartphone era, mobile payments are not mainstream. In a recent report, BI Intelligence lays out the four kinds of mobile payment solutions. that currently matter, analyzes the two key problems that any mobile payment solution must solve to break into the mainstream, and maps out potential winners and losers in the mobile payments race.”

This Company Is Killing It In Retail –

“While many other fashion retail companies garner more attention, there is one clothing retailer quietly generating fantastic returns for its investors. The Buckle (BKE) has, for over eight years, been driving consistent, respectable revenue and income growth-even through the recession. The key to its success ultimately is in focusing on a less flashy but very large and profitable niche market combined with a management team that has built an incredibly streamlined company.”

Digging Deeper Into Retail Store Closings –

“The year 2012 appears to have been difficult for the retail industry because 3,288 retail stores closed their doors. Blockbuster LLC closed 500 stores, Abercrombie & Fitch would close 180 stores “over the next few years,” Sears Roebuck & Co. closed 172 stores, and Gap Inc. closed 100 stores, according to a list of 2012 retail store closings published on the website on Jan. 27. “Most of those store closings come as a result of retail companies right-sizing their portfolios and are complemented by a healthy amount of new openings, analysts and excess space specialists say,” an Aug. 9, 2012, article on the Retail Traffic website suggests.”

Will Software Eliminate Physical Retail? Not Quite –

“Retail suffers from a heavy real estate cost structure, inventory management challenges, and a high cost of acquiring physical customers. This high cost-structure makes retailers vulnerable even to small decreases in revenue. E-commerce companies, meanwhile, boast broad inventory from warehouses, low prices, home deliverability, and amazing, fun customer experiences. […] So it’s easy to see why my friend Marc [Andreessen](among others) augur the eventual annihilation of physical retail. But it’s a mistake to think that the offline retail industry–which currently represents 95% of retail buying versus e-commerce’s 5%–will shrink to next to nothing.”


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