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10 brands like Volvo, JCP, Nook will disappear in 2014

Magazines, cars, and even retailers are in danger of not surviving past 2014, a new report indicates, as many brands are still in hot water, even as the economy slowly improves.

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10 brands that look to be in trouble

Each year, 247WallSt.com identifies 10 important brands sold in America that they predict will disappear before 2014. This year’s list is filled with companies being torn down by innovation, competition, and financing. The take an in depth look at the state of 10 brands in trouble by analyzing sales, losses, market share, public disclosures that may indicate a parent brand will sell the company, sold companies, bankruptcies, loss of customers, and so forth.

The 24/7 analysts claim the following ten brands will disappear in 2014 based on their research:

Rank: Brand: Top Reason it Will Disappear:
1 JCPenney As Macy’s, Target, and Amazon.com are seeing healthy growth, JCPenney has had a lot of drama in recent years, seeing dramatic sales losses that many speculate are insurmountable.
2 Nook Despite a lifeline from Microsoft’s massive investment, the Nook just doesn’t appear to be able to withstand competition from Amazon’s Kindle or the iPad, not to mention e-reader sales are declining overall in favor of tablet computers.
3 Martha Stewart Living Martha Stewart Living Omnimedia Inc. has three divisions: publishing, broadcasting and merchandising. Broadcasting and merchandising look great, but publishing is in the tank and is seeing massive losses and abysmal ad sales. Having already shuttered Everyday Food and Whole Living magazines, Living could be next or at least taken out of print and put online only.
4 Living Social The coupon phase is dying, and competition is tight. Amazon.com wrote down their $175M investment in Living Social by $169M last year and the company lost $50M in the first quarter of this year alone versus a $156M profit in the first quarter of 2012.
5 Volvo As of April, Volvo’s market share has plummeted to 0.3 percent and sold only 19,571 vehicles in the U.S. last year, down 8 percent in a market where sales are trending up overall. In addition to that, several Chinese Volvo dealers committed fraud and the brand is generally thought to be in trouble.
6 Olympus Having dwindled to only 7 percent of the market and three straight years of losses, pledging to stop issuing dividends to investors until they are back in the black, which they and others don’t project will be soon.
7 WNBA With attendance and tv viewership in the dump, the brand will not likely survive current WNBA advocate and NBA commissioner David Stern’s retirement in 2014, and as profitability diminishes and teams disappear, the writing is on the wall.
8 Leap Wireless T-Mobile and Sprint have snatched up all of the small wireless companies, but no one seems to want Leap Wireless whose shares are down 90 percent in the last five years. They won’t be able to build a comparable 4G network or pay debts, and is likely headed for bankruptcy.
9 Mitsubishi Motors With the biggest decline in sales of any brand in America last year, selling only 60,000 units, mostly lower-priced, this company could exit the U.S., particularly after being ranked third from last in the new J.D. Power vehicle dependability survey.
10 Road & Track Hearst bought this famous auto magazine in 2011 and also owns Car & Driver, both of which have seen a dip in ad sales, but Road & Track has been hardest hit. Both headquartered in the same city, consolidation of the brands is a possibility.

Which of these brands will have what it takes to turn things around, or will 2014 see the death of some very old brands alongside a few startups that may not hold up to the test of time?

The American Genius is news, insights, tools, and inspiration for business owners and professionals. AG condenses information on technology, business, social media, startups, economics and more, so you don’t have to.

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5 Comments

5 Comments

  1. Greg Fleischaker

    June 5, 2013 at 5:22 pm

    That’s amazing that they make a list every year of companies that they think will disappear before 2014. I bet that was a really difficult list to make 20 or 30 years ago, but will probably be pretty easy in 2015 when they get to look at the past year or two.

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$100m reimagined convenience store startup to open 25 stores in 2022

(BUSINESS) Foxtrot is looking to redefine the convenience store as we know it. This startup is looking to make it a whole new experience.

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Laptop with Foxtrot convenience store locations in Chicago.

Move over 7-11, there’s a new player in town! There’s always room for competition, even in the world of convenience stores. Yes, you read that right, Quick Trip has some serious competition from a newcomer, Foxtrot.

Foxtrot is a curated, modern convenience store offering a brisk 30-minute delivery and 5-minute pick-up. It was created by Mike LaVitola and Taylor Bloom in 2014. These stores will undoubtedly be popular in walkable areas, but also with their online ordering convenience. This modern version of a convenience store offers the combination of an upscale corner store with a digital-first e-commerce platform. Sounds pretty glorious, right?

However, the original convenience store is safe as long as people are traveling and need to stop for gas or a restroom break.  If you’re from Texas, then you know and love, Buc-ee’s, the Texas-born chain. Buc-ee’s have been creating their own in-store products garnering a cult following among their customers. Still, Buc-ee’s doesn’t have an online ordering or delivery option unless it’s offered through a third party.

Foxtrot has raised $160 million in Series C funding and they are expecting to open 25 locations in many cities in 2022. There are a few different levels of funding. If a company makes it to Series C funding, they are already successful and looking to expand or develop new products per Investopedia.

According to Retail Dive, “About half of the new stores will be in Chicago, Dallas and Washington, where all of the 16 stores Foxtrot currently operates are located, LaVitola said. The tech-focused retailer is also planning to begin operations in Boston and Austin, and intends to open four or five new stores in each of those cities during the next year and a half, he said.”

Foxtrot is testing out technology equipment that would allow customers to leave the store without stopping to checkout at the counter. They plan isn’t to go entirely self-service, but as the creator LaVitola stated, “the more hours we can allocate towards sampling and storytelling and interacting with customers and less [on] tasks that don’t add on to value, like checkout, that’s great.”

Foxtrot is redefining convenience by including carefully curated products. They aim to offer local popular products as well core pantry items. They aim to make the commonly unpleasant experience of convenience stores enjoyable. Let’s hope they succeed.

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What small business owners can learn from Starbucks’ new D&I strategy

(BUSINESS) Diversity and inclusion have been at the forefront of Starbucks’ mission, but now they’re shifting strategy. What can we learn from it?

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Hands of all different skin colors on green background representing Starbucks' D&I.

Starbucks was one of many companies that promised to focus on diversity and inclusion efforts after the death of George Floyd by Minneapolis police in 2020. What sets Starbucks apart from other companies were its specific goals.

How It Started

They began with hiring targets and have now added goals in corporate and manufacturing roles. Starbucks’ plans and goals revolve around transparency for accountability. They released the annual numbers for 2021 as a way to help hold themselves accountable. The data they’ve released so far show that they’ve met nearly a third of their 2025 goals according to Retail Brew. Because of this information, we can see why they are choosing to move in the direction of manufacturing and corporate jobs. In 2021, POC’s fell to 12.5% of director-level employees from 14.3% in 2020 in manufacturing.

How It’s Going

Per Starbucks’ website stories and news, “[I]t will increase its annual spend with diverse suppliers to $1.5 billion by 2030.  As part of this commitment, Starbucks will partner with other organizations to develop and grow supplier diversity excellence globally.” To put that into perspective, they spent nearly $800 million with diverse suppliers in 2021. With these moves, by 2030, it will increase by almost double.

As part of their accountability and progress, they plan to partner up with Arizona State University to give out free toolkits to entrepreneurs on fundamentals for running successful diverse-owned businesses. Another goal they’ve listed is to boost paid media representation by allocating 15 percent of the advertising budget to minority-owned and targeted media companies to reach diverse audiences.

At the heart of all this information on their goals and future plans, data transparency and accountability are what’s forcing them to look at the numbers to make specific goals. They are doing more than just throwing money at the problem, they are analyzing how they can do better and where the money will make a difference. Something that, as entrepreneurs, we should all do.

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Peloton is back-pedaling: Reports of price increases, layoffs, and cost cuts

(BUSINESS) After a recording of layoffs leaks, ‘supply chain’ issues cause shipping increases, and they consult for cost-cutting, Peloton is doomed.

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Man riding Peloton bike with instructor pointing encouragingly during workout.

Is Peloton in Trouble?

According to many reports, Peloton had success early in the pandemic when gyms shut down. Offering consumers a way to connect with a community for fitness along with varying financing options allowed the company to see growth when many other industries were being shuttered.

After two years, CNBC reports that the company is “being impacted by …supply chain challenges” and rising inflation costs. According to the report, customers will be paying an additional $250 for its bike and $350 for its tread for delivery and setup.

As demand has decreased, Peloton is also considering layoffs in their sales and marketing departments, overheard in a leaked audio call. The recording details executives discussing “Project Fuel” where they plan to cut 41% of the sales and marketing teams, as well as letting go of eCommerce employees and frontline workers at 15 retail stores.

Nasdaq reported that the stock fell 75% last year, after a year where it soared over 400%.

Peloton reviewing its overall structure

According to another report from CNBC, Peloton is working with McKinsey & Company, a management consulting firm, to lower costs as revenue has dropped and the growth of new subscriptions has slowed since the pandemic. Last November, according to NPR, Peloton had “its worst day as a publicly-traded company.” It also anticipates greater losses in 2022 than originally predicted. It makes sense that the company would reexamine their strategy as the economy changes. They aren’t the only one that is raising prices amid supply chain issues.

It will be interesting to watch how Peloton fares

Peloton has a large community that pays a monthly fee for connected fitness. While growth has slowed, the company still has a strong share of consumers. Although it is facing more competition in the home fitness market and more gyms are reopening, as Peloton adjusts to the new normal, it should remain a viable company.

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