Last Call or Just the Beginning?

I am a graduate of the University of Akron’s Finance Department with a undergrad degree in Corp Finance. As I was on my journey to complete my degree, I took a management class that changed my thinking about commodities. I had a prof who had worked for Kraft and she shared that Kraft’s profit had historically increased when the economy was in a downward cycle. I’m not sure why but it struck me as one of those “Eureka” moments! (Not to be the insane Greek but Eureka is actually two Greek words “To Vrika” which means – “I found it” which has since been transformed into Eureka BUT I digress)

So as I was at my ICSC conference last week and there was a lunch speaker. This man was a broker who has been in the business a number of years, the point of his speech was to reiterate that companies are not “not doing anything” but instead they are changing their approach on how they currently run their business.

SO – As I was reading my SCT magazine this morning (I currently have limited internet access which as left me a little stuck but one more day and I will be rollin’) and gathering ideas for some of our centers, I read two really interesting articles; one, how the tighter times have changed the perception of outlet centers and two, the gently used clothing market is being forced into center stage. Those two changes have lead to a couple new concepts coming this way!

1. Buffalo Exchange: A boutique style Plato’s Closet that not only keeps up on the latest fashions (they will not distribute items that are two years out of season or older) but they also are environmentally cautious. The company donates $0.05/bag not used and gives the money to various charities. Their donations have exceeded over $265,000 dollars and saved about 5 million bags from hitting our landfills! Buffalo Exchange has stores all over the West Coast and is now entering the East Coast market. They opened their first store in NY and are hitting university/ college towns.

2. Outlet Stores: Stores like Saks Fifth Avenue Off 5th and Neiman Marcus’s Last Call are being pushing into the limelight. The old stigma of outlets is no longer. People are tightening up and are more interested in not only the deal but looking to enjoy their shopping experience. These stores have changed their growth strategy and it has paid off! Hopefully we see a Last Call soon – there is an Off 5th in Aurora!!! (I LOVE IT!)

So, the moral of this story is, when one retail door closes – another opens!!!
YEAH BABY!