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scottyg
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Joined: 17 Jul 2006
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   Topic: PAC SUN Drops Closed Toe Shoes
Posted: 06 Mar 2008 at 2:29pm |
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So wow... PAC SUN announces in Jan that it's pretty much dumping closed toe shoes and there's not a peep from the talking heads that live here in the forum? Reserving comment till the dust settles?
Edited by scottyg - 06 Mar 2008 at 2:31pm
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lovedamotu
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Posted: 06 Mar 2008 at 3:12pm |
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Well they are now saying certain brands will remain.
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3xthreat
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Posted: 06 Mar 2008 at 9:35pm |
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Yeah, brands will remain but it won't be nearly as many SKUs. There goes some of the SMU people at my company. Not that I own the company...you know what I mean.
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spectacular
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Posted: 06 Mar 2008 at 10:47pm |
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Check out the latest at Transworld Biz. Basically, everyone's going to be fine. In fact, seems like core shops will be happy to have the biz.
As much as the "sun" tries to rule the world, the world may be better off w/o.
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Niram
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Posted: 07 Mar 2008 at 11:28am |
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I dont think everyone is going to be fine, That is millions of dollars in sales that the brands will be losing each year.
They have to recoup that money in other ways.
Yeah, core shops my be happy, but the pacsun customer doesnt really shop at core shops, they walk into a mall and get all thier shopping done.
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MALAKYE WORKS!!!
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tbean
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Posted: 07 Mar 2008 at 12:53pm |
No, not everyone will be fine. Meaning the shoe companies that decided to cater to the giant pac sun and expand their business based only on the growth of a single account. The core shops will finally get the shoe business back and by core I do not mean just the 800 sq ft shops but the stand alone single owner business guys. But as far as the shoe companies hurting no way. I got one word for ya.......Zappos.
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spectacular
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Posted: 07 Mar 2008 at 9:48pm |
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Again, check out the latest on Transworld Biz (page 5 to be exact) The bigger shoe co's diversified so that they wouldn't have all their eggs in one basket. That's the key.
As you read about what PacSun's been up to lately, you can see what they plan on doing proprietarily. Sounds like we all need to diversify in accounts and catagories.
PacSun likes their higher margins. Those of us who got in and depended on the sun will have to re-strategize the way we do our biz. Trust me...its a blessing.
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CGeorge
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Posted: 08 Mar 2008 at 4:13pm |
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To build upon Spectular's post, many of the financial releases and/or interviews done with the larger players showed that they had, in fact, diversified to reduce their exposure to risk from large customers... I think some of the larger companies said that PacSun accounted for about 5% of their business. Will it affect them? Absolutely...but probably not to the extent that some think.
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got2surf
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Posted: 09 Mar 2008 at 9:30pm |
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Spectacular, your right long term it will be better for the entire industry. The big guys like that with such a large sword can really and have hurt many of the companies that got rich off of the growth.
Now that pac is hot to go with their own brands, leveraging what current brand mix they still have(and they publicly say) they will use them to make their brands bigger and eventually .........
Vertical management, Vertical game plan nuff said!
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scottyg
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Posted: 10 Mar 2008 at 12:12pm |
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...now that's more like it. I knew there was someone out there with an opinion on this. Here's mine since know one asked.
Looks like most people are sort of downplaying the impact on retailers and the vendors. Spectacular's advise for us to re-read the Trans-Biz from FEB '08 offers some deeper insight into the situation. The CEO of Zumiez sez on pp 10 "We hit a wall in DEC w/ the footwear business. We're still assessing what's going on." Sounds like the PAC SUN deal is an example that others in the industry may follow. Now it's not so much about the original product as it is the T or the hoody brandishing that product. Ask Wolcott how he plans to grow Electric: softgoods! So no one at Vans or Sole Tech want wants to admit this is a big deal but it may become watershed moment in hindsight. One thing about Vans: They can claim their volume from PAC Sun was nada. But I find it a strange coincidence that reps in Texas are trying to open new retail accounts in the wake of this news when for years and years their mantra was we're not opening any new accounts.
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