Has the DNA of Retailing Been Compromised?

(RobinReport) - If you think brick-and-mortar stores are in turmoil because of the internet, you would be wrong. The recent closing of Lord & Taylor’s iconic Fifth Avenue store was not preordained by the impact of e-commerce. The real problem was its ownership. The real-estate investment powerhouse owners had little understanding of the retail industry – in particular what it takes to implement an executive structure to build a profitable retail business. This is surprising since the investors own other well-established international retail brands that are doing well. In my opinion, their strategy is to purchase retail stores for their real estate locations and the ultimate real estate value of each site. Retailing is just a sideline business. Thanks to 40-plus years of a successful and privileged retail career, I’ve been fortunate to have worked alongside some of the most amazing merchants and retailers who have built the industry’s impressive reputation. I can state with total confidence that a compromise in the industry’s DNA is precisely what has taken place.