MBS Inspiration

  • The MBS Group
    is one of the world’s leading executive search firms operating exclusively in Retail, Consumer and relevant technologies, and the most successful sector-specialist firm in the UK

Retail in America

Posted: 27 August 2010

I have just returned to the UK after nearly three weeks in the USA and, I must say, the trip was extremely enlightening. My sense is that the world’s largest eceonomy is not yet out of recession and that business is tough for many, if not most, retailers. There seems to be a low level of consumer confidence, very little job growth and, depressingly, very little that was new and innovative – except, of course, for some amazing restaurants!

Stores like Walmart and Target, at the value end, are performing comparatively well and one-off, very up-market stores at the other end of the spectrum are also meeting budgets. It is those stores in the middle that are having a tough time.

I visited many retail parks and found them bland, samey, soulless and hard to differentiate, even from one city to another. Every store sells exactly the same merchandise and chains seldom, if ever, differentiate locally. Interestingly, Macy’s has begun to reap the rewards of tailoring their merchandise to local markets, an initiative they started in 20 markets in 2008 and which last year they rolled out nationally. They have also targeted the teen market and their mothers with a new line called ‘Material Girl’, inspired by Madonna and her daughter. Macy’s profits are up from $7m to $147m. Predictably, however, just as in the UK, there was a queue around the block outside the Apple store! They had just received a delivery of iPhone 4s which, by the afternoon, were completely sold out. Does it mean that consumers are happier indulging in consumer electronics than apparel?

Thanks to all of you for the emails with recommendations on restaurants in the USA. For me, the winner has to be The Spotted Pig in New York. Have a great week-end and do let me know what you think about buying locally, moira@thembsgroup.co.uk



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