Big Changes Going on in Retail: Koplovitz

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Jan. 9 (Bloomberg) –- Koplovitz & Co. Chairman & CEO Kay Koplovitz discusses retail’s winners and losers and the future of the industry with Pimm Fox on Bloomberg Television’s “Taking Stock.” (Source: Bloomberg)


What are some of the big changes?

Retail is changing dramatically in a way that, yes, we still have our shopper stores, retail business that is brick-and-mortar.

Still the majority of sales are there, but sales are moving rapidly to online and mobile.

Retailers have to integrate, both in-store mobile -- in-store and mobile and online.

They have to reject the customers in any way to keep them connected -- reach out to the customers in any way to keep them connected to their brand.

They have to figure out how much they will do in-store and online and have available on mobile inventory.

And how they will compete with someone like

And of course that is always another issue.

There is ebay out in the market place trying to support local retailers by being there on time delivery system for them.

There are lots of changes in the marketplace for retail.

And one of the things that i think is really challenging in retail today is that we are training the customer to wait for massive sales, to take it vantage of highly promotional sales that are diminishing the margins of the business.

We saw that today.

We heard from bed bath and beyond today.

A very highly promotional season.

Retailers are really struggling with that.

Of course, gap had its problems in last few years, so you would expect them to have stabilized and starting to gain sales against last year's numbers.

But still, it is very hard in this environment with the highly promotional nature of sales.

And we are training the customer not to buy at full price.

That is something that is challenging for retailers.

You get a telephone call -- who knows, in the middle of the night.

And it says, jcpenney would like to talk to kay.

What would be the two or three things that you would want to get into the ear of those in charge at daisy penny?

I think they are returning to a traditional expectation of the jcpenney customer.

The jcpenney customer is a loyal customer.

Half of america shops at jcpenney.

But they were offended by the change of policy, taking away their promotional coupons.

Click that was part of the brand.

It was, and part of the customer expectation.

You could tell the customer that the prices will be lower, but if you take away the promotional coupons, people like to think they get a good sale price.

It emotionally takes away their interest in buying other things because promotional coupons are to bring people into the store so they use the coupon, but they buy other things while they are there.

I think they are returning to their core brands that they have available in the store.

Mike coleman, who has returned as interim ceo, he has been bringing back his old team that knows how to deal with the customer.

I think they are lowering their customers back into the store.

-- i think they are luring their customers back and the store.

That is pretty good in this environment.

Does that say to the challenge of transitioning a brand to a consumer group?

I look at abercrombie & fitch, they managed to do it, but it also in a sense has narrowed their demographic.

Right, and they are struggling now.

These things have their cycles, i think.

A 100-year-old brand or something like that is really in the market and can be lost.

And can be revised as well, right?

Yes, as abercrombie was, but it is rare and hard to do.

Sears holding, for example.


They were losing market share, and it was stable.

Consumers are so much more aware of how to come prater -- compare prices today.

They are more sophisticated.

They are.

They have more tools than they used to.

We will continue the conversation with k koplovitz

This text has been automatically generated. It may not be 100% accurate.


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