- Sep 7, 2011
- Reaction score
agree 100%. There's nothing wrong with that at all. I guess I wonder, were they profitable at 9m/year? If so, what does the end game need to be? Scaling up has big risks, and NEED got burned by being overextended, which is tragic.I think the real story here is why do successful independent retailers try to become the next mega-retailer? I went to college in Richmond and Need Supply was THE store. In 2015, they were doing ~$9M/year in sales, 40+ employees, and growing - a completely respectable business anyone could be proud of. But for some reason this wasn't enough for them. They had spent 20 years building up to $9M/sales, but decided to take on investors, acquiring Totokaelo, and trying to keep up with huge players like Farfetch. They got what they wanted "peaking at $50M/year in sales", but did so with a "growth at all costs" mindset that left them over-extended and easy prey to unusual circumstances. Boutiques need to learn when to say "Enough is Enough" and stop trying to expand every season.