Amid the carnage on Europe’s high streets, Ian Cheshire, CEO of Debenhams department stores (UK) held the opinion that “It is still possible to make money out of clothes, but only in certain precise categories; at the high end, at the discount end and in specialist brands. The rest are getting hammered”. (The Economist 18/6/16)
This has always been the case but all of a sudden companies are starting to notice that the ‘middle market’ – so beloved of lazier organisations has become the 21st century’s killing ground. If you are searching for cash flow and profits, you won’t find it by reducing prices to increase sales, that just doesn’t work any more – the middle ground is empty.
Today the money goes to offers that are different for the rest and the best profits go to those who stand out