Turning Points

March 10, 2010 | Link This | Email this | Comments (0)

We’ve all felt the resurgence in specialty retail and now the results are showing. Leading Investment Bankers for our industry; Tully and Holland, report that many specialty retailers are getting more financing, higher valuations and investor backing like we haven’t seen in many years. 

As you might imagine, this does not hold true for every company. Investors are willing to put money where they see the brightest future.  In particular the following three retail segments are seeing the most interest:

     1. Discount / Value / Off-price

     2. Health & Wellness

     3. Internet Retailers

There has been a spike in merger and acquisition activity with many deep-pocketed retailers on the hunt for well positioned businesses.&...Read More

Industries: Business News, Financial

January 13, 2010 | Link This | Email this | Comments (0)

Lately I have been working with a US manufacturing company that has been crushed by another large Fortune 500 sized company.   This was a talented manufacturer with a specialty in high-end, high-margin products. 

The owner will tell you today that he knew they were courting trouble by letting one customer become such a huge part of his business.    And he’ll also admit that he got addicted to the revenue and didn’t manage the business properly.  

But the sales took off, every year was bigger and more exciting than the last and every year held the promise of a huge payday.  On and on they went until the music stopped.   And when it did they were left without a chair.    Sales to that #1 customer fell 90% in 10 months.   A severe cash crisis followed...Read More

November 25, 2009 | Link This | Email this | Comments (0)

There used to be six ways for a business to get out of trouble - and fixing it was only one.   

Think about that, you can get out of a major jam six different ways. That was very good for American businesses and the economy. 

These days there are only about 1½ways to get out of trouble in a distressed business.  And the one solid way is the worst; liquidation. 

Quickly; here are the six ways in order of preference (reverse order of woe):

1. Resurrection. Fixing the business and restoring financial health.

2. Refinancing.  Taking you loan/debt to another friendly neighborhood ...Read More

November 6, 2009 | Link This | Email this | Comments (0)

There is no longer any doubt in my mind that the American Consumer is coming back strong - and the Gift Business will do just fine.
 
I say this because I read a survey that might seem pessimistic on the surface;  According to Hart Research Associates; "63% of U.S. Consumers say the way they spend and save has changed permanately". 

My first thought is; What the heck are the other 37% thinking?

My second thought is; I know this is phoney. 

In 1990, during some transient Green movement (remember those global Earth Day celebrations?), 80% of Americans said they would dramatically alter their consumption to benefit the environment.  That year Ford introduced the first SUV, the Explorer.  The Hummer followed soon after, as did larger homes, higher fuel bills, bottle...Read More

October 22, 2009 | Link This | Email this | Comments (0)

Yesterday's New York Times has a column by Thomas Friedman discussing the widening gap between the Haves and Have-Nots of the new economic order.    Not the same old rich/poor divide but the future split of who will find work and opportunities in the future and who won’t.

I quote Friedman for two reasons; one he’s a lot smarter than me and also because he draws an interesting parallel to the Gift/Décor business. 

Remember the last 10 years when our economy was “normal”?     Well, actually it wasn’t.   The world had caught up to (or passed) us in education, training and skills.   And at the same time, technology eliminated many borders.  We all know about the Indian x-ray technician working for 5% of her American counterpart and doing it al...Read More