- Tarnished Brand: By taking a stance, did Macy’s tarnish the brand that was in their stores? Clearly their move has received a great deal of press that has not been positive for the brand that they supported for many years. Is it a financially sound business practice to contribute to negative press about product that your business actually “owns”?
- Loss of Sales: How does Macy’s plan on selling the product that is currently in their stores, transit, or distribution centers? As of today, I don’t see any Donald Trump product on their website. Are they currently still selling product in the store? Has anyone seen an estimate quoted by Macy’s that indicates how much Donald Trump product is currently owned by Macy’s? I am curious about unit totals and retail value. Would this potential lost sales revenue and possible depreciating inventory value effect the bottom line for Macy’s financials?
- How long will they continue to sell the product to their customers? Will Macy’s take a complete loss on the product and destroy the merchandise that they currently own or would they sell the product to other companies (apparel closeout companies, jobbers, etc.)? We assume that they are not planning on selling off the merchandise at the Macy’s off-price stores.
- Work in Progress: What happens to the product that is currently being produced at the factory? If the Donald Trump brand has been selling at retail, it is extremely likely that product is also in the production pipeline. How many production orders are being canceled with the factories? It is possible that trim suppliers will also be negatively affected. For example, the woven label suppliers that made the Trump brand labels may see a decline in sales.
- Is any of the Donald Trump product being manufactured in Mexico? I do not recall for certain, but I think that Donald Trump suits may have been made in Mexico in the past. Wouldn’t it be sad if Macy’s decision causes production orders to be canceled at Mexican clothing factories. Hopefully Macy’s decision will not harm the profitability of clothing factories around the globe.
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Thursday, July 9, 2015
Fashion Politics with Donald Trump
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