Wednesday, July 13, 2005

Q: Is the internet responsible for the poor health of the traditional retailer?

A: No, I don't believe the internet is a major factor as yet. Many retailers have the option of entering internet sales if they want to learn this new market (as we are).
For those who do not diversify, there is an uncomfortable phenomenon - your rents, salaries and other expenses stay constant but the internet drains 10% or so of your sales. That must be addressed. But overall, including internet sales, the art material industry is down. Ask any manufacturer.