Andrew Will Expand The Department Discount Market

According to the world clothing shoes and hats net,

(Under Armour), Dick's Sporting Goods and Kohl's, three companies are entangled with each other by the fetters of "love and hate".

The relationship between the three is also shown for us.

How to compete with each other between retailers and chain retailers is cruel.

Surviving in competition.

The core of the relationship between the three companies is Andemar.

Andemar is trying to revive his declining performance.

In July 2016, Andrew signed an agreement with the Department of Commerce, which allowed Andrea to sell his sportswear in the department store.

In the past, in addition to its official store, Andrew only sold its products in third channels such as sporting goods stores such as Dix sports.

The cooperation with Colls of the Department Store marks the pformation of Andemar strategy. Meanwhile, Andrea also wants to make up for the loss of Sports Authority, a sports goods retailer bankrupt in 2016, and the sale of goods in Colls does not pose a threat to the sale of existing products.

A year later, when consumers discovered that they could buy cheaper andmar products in a department store like this, andmar's wishful thinking went bankrupt.

Colls, of course, was very grateful to Andemar because it brought more people to department stores.

But Andemar's biggest customer, Dixie sports, has no good face. The andmar products they sell from them account for 10% of the total sales of andmar in 2016.

Now, Andrew and Dix sports have lowered their growth forecasts. Andrew even announced a corporate restructuring plan in August 1st.

At a conference call on Tuesday held on Dix sports, they claimed that their competitors' big discounts forced them to cut prices.

Dixie sports CEO Edward Stark (Edward Stack) was asked, "whether the agreement between Andemar and Colls has an impact on Dix sports", he said: "the increase of sports clothing category will certainly affect us, but we will do our best to recover the market share we lost."

As a result of investor concerns over the long-term price war, Dick sports shares plunged 23% on Tuesday's close.

Andemar sold too many products of the same category in the market, which can only be sold with large discounts.

This makes other retailers also have to sell at the same discount (otherwise everyone will buy it), but such discount is not so common in Dixie sports.

In response, Dixie sports announced a price matching policy for all its stores selling Andrea products.

This leads to the defeat of both Andrew and Dick sports.

Andemar claims that in the first two quarters of 2017, no retailer's sales of andmar exceeded 10% of its total sales.

According to Instinet analyst Simeon Siegel (Simeon Siegel), at the same time, Dixie sports also vigorously promoted their own brand of sportswear, which squeezed the store left to Andemar's shelf space.

Ironically, although Andemar's sales in Colls are better than those in other retailers, it is not enough to reverse the negative growth of sales.

Dixie sports had suffered losses in share price diving last week, but the biggest loser should be Andemar.

At this point, Andrew's stock price earnings ratio remains at a 45 times high, but the actual value of the company and its relationship with retailers should be overestimated.

More interesting reports, please pay attention to the world clothing shoes and hats net.