What brands won’t make it to 2014
According to 247wallst.com analyst Douglas A. McIntyre, there are several brands that won’t make it to 2014. Every year, the publication identifies 10 brands that will disappear before next year. The criteria established include: declining sales and losses, companies that are sold or face bankruptcy, companies that have lost most of their customers, disclosures by the parent of the brand that it might go out of business, rising costs which are not likely to be recuperated through raised prices and operations with withering market share.
Here are the predictions:
J.C. Penney – the company has been facing significant financial losses from some time that may or may not be recouped now that Myron Ullman is back in the CEO chair. On the other hand, while J.C. Penny may struggle to regain the market position that it had, the competition won’t wait for that to happen. Walmart, Macy’s and Target are successful, large stores, while Amazon.com and eBay.com have left the all competitors behind.
Nook – Nook has been downhill since its release, being always No.2 since Amazon presented Kindle. But when Apple’s iPad became the leader product in this IT market section, Barnes & Noble’s e-reader was given a shorter lifeline. Not even Microsoft’s $300 million investment didn’t make a difference.
Martha Stewart Living Magazine – in the past year, Martha Stewart Living Omnimedia Inc.’s publishing division lost $62 million, which caused the discontinuance of Everyday Food and Whole Living. In 2012, the number of the advertising pages in Martha Stewart Living Magazine dropped to 766, from 1,306, in 2008.
LivingSocial – according to AdWeekly, LivingSocial might be sold by Groupon, “or liquidated piece by piece by spring 2014”. The daily deals website lost $50 million in the first quarter of this year and with competitors like eBay, Amazon and American Express, its closure is a very plausible scenario.
Volvo – in the first four months of this year, Volvo sold 19,571 cars in the US, from a total sales number of 4,970,000. The company’s vehicle line is too small to enter e serious competition with General Motors, or Toyota, or even low-end BMW, Mercedes or Audi models.
Olympus – within the past three years, Olympus did not manage to create a profit from the digital camera business. Moreover, its sales last year dropped 18% and things don’t look any brighter for the days to come.
WNBA – Once David Stern, the protector of the Women’s National Basketball Association, will retire in 2014, there will be little chance it will survive. Since its beginnings, three decades ago, six teams have disappeared and other three have been relocated. The attendance and the TV ratings are so poor that the owners have little to no determination to support the WNBA anymore.
Leap Wireless – in the past five years, the shares prices of Leap Wireless dropped 90%. A promising company has been visibly shrinking on the market, hoping for a big fish that would swallow it and make it flow again. However, the big fish, that could have been Metro PCS, merged with competitor T-Mobile, thus ruining Leap’s chances of further survival.
Mitsubishi Motors – this year the company has sold 6.5% less cars than the same time last year. And in 2012, sales dropped to 60,000 vehicles, from nearly 80,000 the year before. This descendent trend is due, in part, to its small model lineup – only seven models. Just like Suzuki last year, Mitsubishi is expected to exit the U.S. market by 2014.
Road & Track – this year, the popular automotive magazine got slimmer by 31%, shedding down to 232 pages. Could that be because of the fell of ad pages to 699 last year? Back in 2008, it has 1,092 advertising pages. Plus, competitors seem to be thriving. Car & Driver magazine is currently the largest automotive magazine brand in the world, having an audience of 10.7 million people. And since both publications are owned by Hearst, guess which one’s going to be sacrificed!