IT'S WHAT YOU KEEP

A fisherman once caught a glittering golden fish

The fish pleaded, “Please let me go, and I’ll grant you three wishes.”

Tempted, the fisherman agreed and let it slip back into the sea

He rushed home, told his wife, and they began to make wishes—first for a bigger house, then riches, then power

But with each wish, they grew more discontented. In time, they lost it all through greed and misjudgment.

In the end, the fisherman sat by the sea with his empty net and whispered, “Maybe I should have just kept the fish.”

🎣 In retail, Ten Percent is an important number

Above this number, brands are extraordinary

Below this number, brands are merely average

Far below, the brand’s in trouble

I’m not talking about NPS scores, survey results, or conversion

I’m talking about profits

Like the fisherman, it’s not what you earn

It’s what you keep

Net income, for businesses, is what you keep

Who makes the cut?

(TIP- CLICK DISPLAY IMAGES AT THE TOP TO SHOW THE CHART)

Luxury brands like LVMH and Prada

Status brands like Tapestry and Lululemon

Best-in-class mass brands like Uniqlo (Fast Retailing) and Abercrombie

Even Nike, in turnaround mode, makes the cut

I was surprised to see Autozone and O’Reilly in the mix

But they serve a real need- everyone has a car

📉 Also there are some Fallen Angels that used to make the list, but do not anywhere

Kering, Ralph Lauren, Dillards have all had their profits decline of late

What do the extraordinary brands have in common?

They have a very loyal customer base

They’re highly desirable brands, allowing for high markups

They have an intense focus on stores and customer experience

They have long-term focused, stable management (other than team Swoosh)

If you’ve worked in the industry, it can be surprising

We work hard to create incredible product, marketing, brand experiences

And then only achieve a 5% to 8% level of profits

Not much more than the return on a U.S. Treasury bond

But you know what

It’s worth it, because retail is awesome!

CHAD’S ROUND-UP

📚 What I read: Expert Secrets by Russell Brunson- seeking to stand out in your work- either in a career or as a business owner? This book shares the strategy of how to position yourself as an expert and how to create a knowledge-based ecosystem around- YOU!

🎧 What I heard: “I Can’t Stick With It, Should I?” on the Tropical MBA pod- one of my favorite entrepreneur podcasts addresses when you should quit and when you should persevere. 17 minutes of wisdom right there

🕵🏻‍♂️ An interesting discovery: Sanzo Wada’s Dictionary of Color Combinations- Before I thought that certain colors just somehow looked good together, then I learned that this aspect of creativity is actually science. This book by a Japanese artist, teacher, and color theory researcher is the design secret weapon that I didn’t know existed

*I have no affiliation with any of these things. I’m just sharing things that are of interest

That’s all for today

I’m rooting for you!

Chad