I think it comes down to two things:
1. No point of difference or unique selling proposition (USP)
2. High overhead costs either from rapid expansion or poor financial planning
This applies to a lot of bankrupt
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I think it comes down to two things:
1. No point of difference or unique selling proposition (USP)
2. High overhead costs either from rapid expansion or poor financial planning
This applies to a lot of bankrupt retailers, regardless of what they sell.
Masters expanded too rapidly and couldn’t differentiate itself from the incumbent Bunnings, whether from price, customer experience or product line. Dick Smith had a lot of obsolete or unsold stock when they folded, which signals that they failed to keep up with consumer demand changes. If you asked consumers to describe Dick Smith in fewer than 10 words, many would struggle simply because Dick Smith had no USP.
It’s an important lesson to think about when you are starting a retail business nowadays, in this highly competitive environment – what is your USP?
