Before I start on what I intended to, I just noticed that Northwest Airlines (NWA) is taking another beating and plans to lay off another 2,500 jobs. More bad news ahead…read on.
Cheap is Good
When it comes the retail business, Steve and Barry’s got it nailed years ago by offering what appeared to be fair quality clothing under $10.00. Walk into any Steve and Barry’s and you will see a wide display of denim jeans, t-shirts, sweaters, shoes, and much more. What’s not to love about this store? Nothing. It’s as cheap as they come without walking into less appealing discount stores like T.J. Maxx or Marshalls.
With exclusive rights to brands by celebrities like Amanda Bynes, tennis superstar Venus Williams, SATC star Sarah Jessica Parker - you would think the stores’ merchandise would be flying off the shelves. They could be, but not enough to keep Steve and Barry’s flying above the the dark clouds of economic destruction.
BUT…Cheap Don’t Sell
Would you believe me if I told you Steve and Barry’s would file for chapter 11 bankruptcy protection? Heck, even I wouldn’t believe myself! But the sad truth is that even the celebrities and popularity can’t save this retailer from a suffering economy where hundreds of thousands of jobs disappeared and soaring gas prices. CEO and co-CEO Steve Shore and Barry Prevor had a good thing going with the concept of the store - but alas, the cascading effect of the economy on vendors and supplies have taken its toll on Shore and Prevor. And it is clear in their statement…
“As a result of all of this, our loans have gone into default, and we have had no alternative but to file Chapter 11 to enable continued operations.”
The store may not disappear overnight, but there are definitely signs of weakness and opportunity for competitors to capture some market share in the discount clothing and apparel business.
Online Expansion Opportunities
While Steve and Barry’s is trying to sort out their mess, online shopping sites have the added advantage to capture a large percentage of customers who are still looking for deals. Considering the lower overheads of online shopping outlets, these companies have cash reserves to weather the storm and with enough strategic planning and tactical savvy, have a considerable chance to increase revenue from shoppers who turn to the Internet for bargains. For every Steve and Barry store there are about 100 online websites offering similar products at equal or lower prices.
Message to online shopping sites: This is your time to shine. Plan ahead. Brainstorm next-gen ideas and figure out creative strategies to seduce traditional shoppers to use your websites to make purchases. Strike while the iron is hot…
Of course, Steve and Barry’s could put more attention into their online marketing efforts as well to retain mind share and market visibility, but that’s going to take work and a shiznit load of commitment. Something to consider guys…
Final Words
Go check out their line - maybe you might end up purchasing something from their online store and help the Steve and Barry business generate some revenue.
p/s: I’ll try my best to help you guys out Steve and Barry - with whatever visitors that I have 
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