The holidays are a crucial time for retailers.
Cross-industry research company SCM World has created a list of the brands it believes will fail this season.
Many of these brands have not been aggressive enough with e-commerce, according to the research firm. Many are department stores, which are struggling to compete with discount outlets.
These are the brands that SCM World anticipates will come out on the bottom this holiday season.
“Retail, specifically department stores, have traditionally been a one-size fits all model. J.C. Penney is one example of a company who recently attempted to transition from one type of one-size fits all model to another, and is still recovering. A more segmented approach, including omni-channel is desirable, but differing levels of omni-channel implementation have accentuated inconsistent expectations among consumers,” Patrick Van Hull, a Vice President of Research at SCM World, said in an email to Business Insider.
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“This holiday season, retailers, like Macy’s, have invested heavily in inventory to minimize out-of-stocks and maximize the in-store opportunity. However, such a strategy may limit flexibility and increase risk of shipping and logistics disruptions – a major concern to 53% of 41 respondents in an October 2015 SCM World survey,” Van Hull explained.
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Van Hull pointed to Neiman Marcus’s website failures as a potential problem for the luxury department store.
- Thomson Reuters
Van Hull said that the “uncertainly surrounding Staples’ proposed acquisition of Office Depot” could cause some trouble. (The FTC now wants to block the merger, as well.)
Van Hull pointed to “late arriving omni-channel improvements” as a problem for the retailer.