This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Death and Life of Great American Retailers

To attract shoppers to physical stores, you need something other than a front door, smiling sales clerks, good customer service and a speedy checkout counter. In the Best Buy investor presentation I reference in the above-linked article from Monday (see Page 1, Paragraph 2), that's the type of thing the company's CEO Hubert Joly focuses on.

That's why he's not fit to lead the retailer.

His message and, to be fair, the message of most executives "leading" retail these days is inherently flawed: We need to the do the things that have helped us to fail better.

No. You need to create experiences that do not exist or re-imagine existing experiences the way Steve Jobs transformed the Sony Walkman.

Outside of the Apples and Lululemons (LULU - Get Report) of the world, a small number of retailers provide atmospheres that draw shoppers - people with increasingly hectic lives and an increasing number of more convenient choices - in to their stores.

The urban environment maintains timeless elements of an experience that drives retail traffic. Shopping streets in cities - generally in urban or not-quite-suburban locales - still draws an enthusiastic crowd. These spaces provide atmospheres that make people want to live in the city and prompt suburbanites to vacation in them.

You don't see people dropping $400 a night on a hotel room next to most strip malls or suburban shopping centers. But, quite often, the sport of shopping is the reason for an urban vacation.

Retailers need to step away from Joly's mindset. It's a losing proposition any way you slice it. We'll do great customer service, make sure our lines move fast and improve our digital platforms and then, bam, things will turn around.

That's a one-way ticket to bankruptcy and a tomb beside Circuit City in the mausoleum next to the one that houses Nortel Networks with space set aside for Research in Motion (RIMM).

It's not only about doing what somebody else perfected better. Or catching up in areas you missed. Of course, that's part of the equation, but it's not the equation. If only it were that simple.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AMZN $437.71 0.00%
AAPL $126.44 0.00%
BBY $33.50 0.00%
LULU $65.18 0.00%
FB $87.28 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs