And now they are doubling down on their model. Read their press release:
“The new shopping district at One World Trade Center is the place to be – gorgeous, massive and spectacular, it’s one of the biggest retail openings in the United States this decade,” said Michael Greenberg, president of SKECHERS. “The center’s new stores read like a who’s who list of iconic global brands – and we’re thrilled to take part in this huge retail phenomenon. Consumer interest is already tremendous, the foot traffic will be massive, and we can’t wait to welcome the swarms of locals and tourists who will be walking this center every day.”Their is no possible way to recoup those costs selling shoes in that space. Of course, they will charge off the loss to "promotion."
There is one reason Skeechers is in trouble. Retailers can feed back unbiased market reaction to your product. Your owned-stores cannot and will not do so.
The management is having fun while it lasts.
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