Episode 24: Retailers Have Lost Their Minds

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Retailers Have Lost Their Minds

Evidence:

Coach Shrinking to Grow

http://www.cnbc.com/2017/05/02/coach-is-being-rewarded-for-shrinking-to-grow-retail-analyst-says.html

  • The luxury handbag retailer reported better-than-expected profit before the bell Tuesday, fueled largely by the company’s efforts to cut back on discounts and promotions in U.S. stores.
  • “We believe that the rampant conversations around the ‘Death of Retail’ have bolstered the profile of a small group of companies that have emerged as the structural winners, boosting their valuations to levels previously reserved for growth stocks,” Siegel’s firm, Nomura, wrote in a recent note to investors.
  • An important takeaway from Tuesday’s earnings report: Coach is one of the only companies today that is successfully “shrinking to grow,” Siegel said, referring to how Coach’s shuttering of some stores has helped boost profits.
  • Rumors continue to swirl that Coach is considering buying up more luxury retailers, such as rival Kate Spade or shoe manufacturer Jimmy Choo. This could help the company grow profits even higher, analysts are saying.

Alexa is Now Your Fashion Stylist

http://money.cnn.com/2017/04/26/technology/amazon-echo-look/

  • Amazon has added the Echo Look, a device with a voice-controlled camera that helps users assess their outfits and track what they wear, to its ever-expanding family of Alexa-powered Echo devices.
  • The narrow, oval-shaped Echo Look can take full-body photos and videos, and logs them in a “Lookbook.” The device also includes a “Style Check” feature that allows users to choose two photos of outfits to compare. Alexa then delivers a judgment based on an automated assessment of factors such as fit, color, styling, seasons and current trends.
  • For now, consumers who want to purchase the Echo Look need to request an invitation from Amazon and pony up $199.99. The company didn’t announce when the device will become available for the broader public.

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