Posts Tagged ‘Plummersearch’

WHY ARE RETAIL BONDS TRADING SO LOW?

Tuesday, January 26th, 2016

Retail bonds are trading at an all time low. This reflects on how the investment community looks at retail, especially as related to bricks and mortar operations.

In the WSJ (January 26, 2016) there is an excellent article on retail bonds and what this tells us about the state of the industry and those private equity firms who have invested heavily in retail. I recommend you click below to read the article.

http://www.wsj.com/article_email/how-bad-is-retail-look-at-the-bonds-1453752646-lMyQjAxMTE2NDIyNjMyOTY4Wj

The question is: How are retailers going to address the problems with bricks and mortar stores?

HOLIDAY GREETINGS…’TIS THE SEASON FOR RETAIL

Friday, December 11th, 2015

STORE SANTA

THE STORES ARE DECORATED AND STUFFED  WITH MERCHANDISE. EMPLOYEES ARE TRAINED  AND  READY TO SERVE. THIS IS THE TIME OF THE YEAR WHEN THE SUCCESS OF THE RETAIL YEAR IS DETERMINED.

WE THANK ALL FOR THE GRIT AND DETERMINATION TO MAKE THIS YEAR SUCCESSFUL!

THANKSGIVING GREETINGS

Tuesday, December 1st, 2015

tHANKSGIVING CARTOON
HAPPY THANKSGIVING GREETINGS FROM PLUMMER & ASSOCIATES!

WE UNDERSTAND THIS IS THE BEGINNING OF THE MOST IMPORTANT SELLING SEASON IN RETAIL. WE WISH ALL THE BEST OF SUCCESS!

JOHN PLUMER & SUSAN GILL

ChristmasShopping

Sales and discount concept

APRIL COMPARABLE STORE SALES REPORT – 2015

Friday, November 13th, 2015

ON THE WHOLE, COMPARABLE RETAIL STORE SALES FOR THE MONTH OF APRIL, 2015, WERE FLAT. THIS WAS DISAPPOINTING IN COMPARISON WITH THE ROBUST JOB REPORT FOR APRIL.

TO VIEW THE COMPARABLE STORE SALES REPORT, CLICK BELOW:

Retail Comp Sales HistoryAPRIL

 

PLUMMER & ASSOCIATES – JULY RETAIL COMP SALES REPORT

Friday, November 13th, 2015

TO REVIEW THE JULY RETAIL COMP SALES REPORT PLEASE CLICK BELOW:

Retail Comp Sales History july

PLUMMER & ASSOCIATES – JUNE RETAIL COMP STORE SALES REPORT

Friday, November 13th, 2015

PLEASE CLICK BELOW TO REACH THE REPORT:

Retail Comp Sales History June 2015

PLUMMER & ASSOCIATES RECRUITS CHIEF MERCHANT TO SNAP KITCHEN-A GROWTH COMPANY

Friday, November 13th, 2015

PLUMMER  & ASSOCIATES RECRUITS THE CHIEF MERCHANDISE OFFICER FOR FAST GROWTH COMPANY OFFERING FAST FOOD FOR FOODIES!

The company is committed to bringing to its customers flavorful, handcrafted food that supports its commitment to local, organic ingredients and healthy cooking. Its motto is “Eat right, Feel great. Live well!. The company is headquartered in Austin, Texas and 19 stores in Austin, Dallas, and Houston. It has also recently opened units in the Chicago and Washington, D.C. markets. The company is backed by Catterton Partners.

Shahe Manoukian joined as Chief Merchant and is responsible for product mix & in store placement, new items & seasonal menu roll out, & pricing.  he joins the company from Whole Foods where he was the Global Senior Coordinator – Data Mining & Category Analytics. Previously, he held merchandising positions with Whole Foods in the San Francisco market. He reports to Martin Berson,  Snap Kitchen Founder.

PLUMMER & ASSOCIATES IS A WELL-REGARDED EXECUTIVE SEARCH FIRM BASED IN NEW CANAAN, CT, WHICH  SPECIALIZING IN THE DIRECT-TO-CONSUMER INDUSTRIES (RETAIL, E-COMMERCE, M-COMMERCE, DIRECT MARKETING, RETAIL SERVICES, FOOD SERVICES, RESTAURANT, DIRECT DELIVERY, AND CATALOG). FOR MORE INFORMATION WE REFER YOU TO: WWW.PLUMMERSEARCH.COM AND WWW.PLUMMERSEARCH.COM/BLOG.

 

 

GLASS CEILING: THE BEST ODDS FOR A WOMAN TO BECOME A CEO ARE IN THE FASHION INDUSTRY

Monday, April 14th, 2014

Plummer & Associates, a New Canaan, Connecticut based executive search firm has just completed  a study that shows that 15% of the CEOs in the fashion industry are women. This compares favorable with the retail industry in which 8% are women and the Fortune 500 in which 4.2% are women. The conclusion is that the odds are better in the fashion industry for women seeking to be a CEO.

FashionGlassCeiling1

 

Plummer & Associates is a boutique executive search firm that serves the consumer direct industry (retail, retail services, ecommerce, mcommerce, fashion, apparel, catalog, direct sales, food service, restaurant, and hospitality segments). The firm also works with venture capital and private equity funds on their consumer direct portfolio companies. Plummer & Associates is based in New Canaan, Connecticut and serves clients in North America and globally. We recruit senior level executives to become respected team members/leaders and who prove themselves over the short-term as well as the longer-term. Plummer & Associates is well-known as it provides over 7,500 senior executives with important industry reports throughout the year.

For more information, we recommend you visit our website: www.plummersearch.com and our blog: www.plummersearch.com/blog.

John Plummer

Plummer & Associates, Inc.

PO Box 607

New  Canaan,  Connecticut 0607

1-800-603-9981

http//www.plummersearch.com

COMP STORE SALES – MARCH, 2014

Monday, April 14th, 2014

Click below to view this report:

Retail Comp Sales History-march2014

This is the retail comp sales report for March, 2014 produced by Michael Luce at Tri Channel Strategies. We are pleased to provide this most comprehensive report to you.

As you will see, specialty retail continued to be difficult. The mass retail and food & drug sectors did much better.

John Plummer

Plummer & Associates

jplummer@plummersearch.com

 

PLUMMER & ASSOCIATES BUILDS TEAMS SUCCESSFUL OVER THE LONGER-TERM

Wednesday, April 2nd, 2014

We at Plummer & Associates like to boast about our ability to recruit executives  who are successful both in the short- and the longer-term with our clients.  This article below is a good example of our work.

In 2012 we recruited Mr. Jason Mazzola to Citi Trends as the General Merchandise Manager. Jason knows the off-price business and the value customer.  He, together with the CEO, Ed Anderson, put together a merchandising strategy which led the company to a successful business turnaround. This is especially important as other retailers catering to this customer are failing.

This article is from Motley Fool, March 28, 2014.

 

How Citi Trends’ Business Model Laid the Foundation for Its Turnaround

How Citi Trends’ Business Model Laid the Foundation for Its Turnaround

By Mark Lin | More Articles | Save For Later
March 28, 2014 | Comments (0)

cititrendspicture1

Source: Wikimedia Commons by Michael Rivera

Retail is a tough business, given the sheer number of competitors mostly selling the same undifferentiated products. Citi Trends (NASDAQ: CTRN  ) , a value-priced retailer of urban fashion apparel and accessories, is one of the few to have survived and even thrived. It holds a proud record of having increased its revenues in every year from fiscal 2004 to 2013. Although Citi Trends suffered losses in fiscal 2012 and 2013, it managed to turn around its operations and register a profit in fiscal 2014.

While the return of previous CEO Ed Anderson and the recruitment of the former General Merchandise Manager from The TJX Companies (NYSE: TJX  ) Jason Mazzola as Chief Merchandising Officer in 2012 were credited for Citi Trends’ return to profitability, it was the back-to-basics approach that worked. Firstly, Citi Trends did less upfront direct purchases (from manufacturers) and chose to focus more on its more traditional and prudent off-price and closeout buying strategy. Secondly, it tried to sell more non-branded ladies fashion and accessories appealing to its core customer demographic.

Clear customer value proposition
Citi Trends has a more precise definition of its customer demographic than its off-price competitors. Ross Stores (NASDAQ: ROST  ) places its customers in two different groups at the extreme ends of the income spectrum: those who “want a bargain” and those who “need a bargain.” TJX goes one step better than Ross Stores, defining its core customers more specifically as consumers with annual incomes ranging from $50,000 to $1 million, aged 25-54.

In contrast, Citi Trends’ core customer demographic is more focused and also narrower, suggesting that Citi Trends has a better ability to adapt its offerings to suit customers’ needs. Most of its customer sport median household incomes lie in the $20,000-$40,000 range. As opposed to the average U.S. consumer, Citi Trends’ core customers tend to prefer a mix of the affordability offered by off-price apparel and the “fashionability” of urban apparel. Citi Trends offers the best of both worlds as a value-priced retailer of urban fashion apparel.

Varied sourcing approaches
Citi Trends also adopts a sourcing model differentiated from its off-price peers. TJX has a strong emphasis on pre-season purchases. While this brings TJX substantial purchase discounts, it also means that TJX has to bear the risk that the pre-season purchases are unpopular with consumers in the upcoming season. On the other hand, Ross Stores concentrates its buying with in-season and end-of-season packaway merchandise. The issue here is that if fashion trends change dramatically, Ross Stores’ packaway merchandise will be perceived as out-of-fashion items and sales will suffer.

In contrast to TJX and Ross Stores, Citi Trends is far more opportunistic. It is varied in terms of its sourcing approaches, covering the entire gamut from in-season close-out purchases, next season buys, and upfront purchases where manufacturers will tailor products specifically to Citi Trends’ needs. Although Citi Trends’ 2012 losses were partially attributed to an over-emphasis on upfront purchases, it subsequently shifted its focus back to a larger proportion of off-price purchases. Notwithstanding the risk associated with its varied sourcing model, Citi Trends’ opportunistic style makes it more likely that it will benefit from market trends and meet its customers’ needs.

Strong supplier relationships
Citi Trends’ unique business practices helps to build strong supplier relationships. It pays its suppliers on time and doesn’t subscribe to industry practices of seeking promotional and markdown allowances. It is possible to draw parallels with the stance adopted by another successful organic & natural foods retailer Whole Foods Market.

Whole Foods Market doesn’t accept slotting fees, so it does away with the need to compromise on guaranteed shelf space. Instead, Whole Foods Market focuses on putting goods on its shelves that it knows its customers will like. More importantly, its suppliers will be appreciative of the fact that Whole Foods Market doesn’t eat into their margins with additional fees such as slotting fees.

Foolish final thoughts
For the full year 2013, both TJX and Ross Stores delivered good results, growing their EPS by 15% and 13% respectively. On the other hand, Citi Trends registered a positive profit of just $1.5 million in FY 2013, after losses in FY 2011 and FY 2012. While Citi Trends’ 2013 profit is small relative to earnings in the $20 million range that it once achieved, it should be noted that Citi Trends was still in the process of turnaround during FY 2013, having closed nine stores and relocated six others in the year.

Success doesn’t come by chance. Citi Trends’ revenue stability and its ability to engineer a turnaround suggest that there’s something that works with its business model. In my opinion, its clear customer value proposition, varied sourcing approaches and strong supplier relationships are the key building blocks of its successful turnaround.

Good stocks have to stand the test of time and crises. Citi Trends has successfully turn around its operations from losses to positive earnings, bearing testimony to the resilience of its business model. The Motley Fool’s chief investment officer has selected his No. 1 stock for 2014, and it’s one of those stocks that could make you rich. You can find out which stock it is in the special free report “The Motley Fool’s Top Stock for 2014.” Just click here to access the report and find out the name of this under-the-radar company.

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Plummer & Associates is a New Canaan, Connecticut, based executive search firm which specializes in the recruitment of senior executives for the Consumer Direct industry (retail, retail services, ecommerce, mcommerce, direct sales, catalog, food service, hospitality, and restaurants). The firm is known for recruiting teams to build businesses, support aggressive growth, and accomplish business turnarounds. Contact: Plummer & Associates, Phone 800 603 9981.  Web: www.plummersearch.com. Email: jplummer@plummersearch.com. Mailing address: P.O Box 607 New Canaan Ct 06840 0607.