Analyst Recommends Sale Of Kmart
Credit Suisse has recommended that parent company Wesfarmers should sell off the successful Kmart to enable it to concentrate on the struggling Target chain.
Apparently they feel that would give Target new freedom to adopt some of Kmart’s pricing strategies. Kmart is considered at the top of its profit earning capacity.
The analyst also questioned Target’s ability to compete with the super flexible design/supply chains of its competitors.
Amazon’s Success In Clothing
Disbelievers of the potential for online clothing sales should be interested in the latest statistic out of the US. One analyst has predicted that Amazon’s clothing and accessories sales will rise by 30% in 2017 to $28billion while Macy’s will drop 4% to $22billion making Amazon the largest clothing retailer in the US.