June 27, 2022

A Lot Going On Here

Speaking of reports your boutique agency won't create for you (because they think your problem is marketing - and hint, it probably is 65% merchandise, 20% marketing and 15% creative), we look here at Merchandise Category #5, measuring sales of new/existing items by merchandise grade (A/B/C/D/F).

Yeah, a lot going on here.

In this post, let's focus on the bottom of the table. Sales of new items look like this:

  • 2019 = $581,765.
  • 2020 = $347,852.
  • 2021 = $290,224.
  • 2022 = $293,816.

So that's bad news.

However, it's clear that somebody instructed the marketing team to feature existing merchandise ... everywhere.

  • 2019 =    $887,766.
  • 2020 = $1,042,907.
  • 2021 = $1,281,862.
  • 2022 = $1,157,969.

This is a classic scenario, we see it all the time. Somebody decides to "squeeze more juice out of the lemon". It's the kind of thing Sears/Kmart did ... it's the kind of thing very mature / late stage brands do, they ride their favorite items into the sunset. And in the short-term, yeah, good idea.

But eventually, the sales lost by not having enough good new items harm you over time. More on that topic tomorrow.

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