Women’s Wear Daily

29 December 2014

In the ongoing battle for market share, profit margins are taking a serious hit. “You can’t generate profits without generating revenues, but the revenue increases for most are going to be marginal, low single digits,” Arnold Aronson, retail strategist at Kurt Salmon, explains to Women’s Wear Daily. “In order to be able to gain whatever advance they can in what is pretty much a zero-sum competitive season, [retailers] are going to have to promote more and they’re going to have to give the consumer more reasons to shop.” Aronson notes how the middle class is still feeling pinched and consumers are gravitating toward tech gadgets. “That’s the fashion of the moment,” he said. “It’s a ho-hum kind of a situation. There are no real fashion attractions today that would give rise to anything close to the dynamic in technology.”

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