Retail restructuring expert Michael Appel discusses Costco's pricing and retail operational model with host Sean Weisbrot.
Insight
Appel: No Retailer Has Ever Successfully Shifted From High-Low to Everyday Low Pricing
“My experience is there has never been a company that has gone from high low pricing to everyday low pricing that, that succeeded.”
Prediction Held up
Appel: Rite Aid Cannot Survive Against CVS and Walgreens
“I just don't see them, I don't see them survive, because they're like the third wheel, and you've got two strong, nationwide, well-run competitors.”
Insight
Appel: Liquidity is the primary prerequisite for any corporate turnaround
“Liquidity is number one. So that, because basically if you don't have sufficient liquidity to buy you the time to fix the company, you know, you can have the greatest team in the world. You can have a great plan, but you won't be able to make it happen.”
Insight
Appel: Organizations cannot execute more than four or five turnaround priorities simultaneously
“You can't do more than four or five things at the same time and get the organization to do it. You've got to really narrow it and say, okay, here's the 80%, I call it the 80% solution. Here's the four or five things we need to do to get 80% of the way there. A…”
Opinion
Appel: Bed Bath & Beyond Alienated Vendors By Shifting To Private Label
“When you look at what happened at Bed Bath & Beyond, you know, the vendor community basically said, you know what, you know, you got rid of all of us. You went to private label. And now you want us to come back and, you know, we've already readjusted our busin…”
Insight
Appel: Companies that nobody would miss should not be saved
“It's kind of like the thing is, is that if this company went out of business tomorrow, would anybody care? And if the answer is no, then it's not a keeper.”