Editorial
Happy New Year from Alvanon! We're here with our 2010 outlook for the retail and fashion industry from our unique perspective in the industry.
1. Cold weather affects sales: consumers aren't going out to shop...
Tough for brick and mortar businesses.
Good for direct sellers and catalogs .
Good for cold weather gear companies.
2. Current economic forecast:
The stock market hit rock bottom last March, but has been rebounding ever since.
Unemployment peaked last October, but Moody's is predicting that 250,000 to 300,000 new jobs will be created this year.
3. What the retail experts are saying from the NRF Big Show:
Burt Tansky, CEO of Neiman Marcus - Consumers will come back and start spending.
Millard "Mickey" Drexler, CEO of J. Crew - Very cautious, systemic changes are happening with the way consumers spend money on fashion and retail in general, so they will not come back in the same way.
Myron "Mike" Ullman, CEO of JC Penney - Expects 2010 will be flat.
4. So, what do we see? It is interesting that the industry we look at from a business’ stand point is different than the one you see behind the scenes.
People are upbeat And optimistic about investing in the future.
The goals are more realistic.
Venturing into new channels such as outlet stores.
We are very optimistic about 2010! Our fashion and retail clients are visionaries.
They are investing to learn more about their customer.
They are learning how to serve their customers better.
They are studying their business matrix, full price sell-throughs, conversion rates, mark downs, and returns.
Thankfully we can continue to have a positive impact on their businesses to help drive revenue at the top line and reduce cost at the bottom line in 2010.
