We aren’t sure if this is to be expected or a SUPER BAD development. LakeWest Group, a consulting firm that has helped out Coldwater Creek, Macy’s and others has declared Chapter 7 bankruptcy.
Of course, bad news or not, it’s expected. It’s unlikely that retailers are hiring more of these types of firms, even if they could use them to help find ways to cut costs and improve efficiency.
So even though firms like LakeWest offer to “create a chain of stores that is optimized for productivity, profitability, and coordinated success,” it doesn’t mean that their survival is ensured.
Buxton is also a consultant for retailers and restaurants though we’re coming off of an incredible month. Our president was quoted in the Dallas Morning News last weekend saying:
“In the second quarter, everyone looked around and said, ‘I’m still here. It’s time to do something.’ Now, as we’re into the third quarter, everyone is getting aggressive in 2010 planning.”
Retailers are seeking knowledge about their customers and leveraging analytics to make better market planning decisions and to have more dynamic conversations with their customers.
Retail is looking up.
Looks like a situation where scantily clad women probably won’t help. Retraction from a market is far easier to perform than expansion. The sales figures tell the story, no need for a consultant. I feel for the people involved, we have gotten so good at what we do, these are skills that are difficult to transfer.
If your business specializes in developing or building for lifestyle tenants or consulting for them or selling stuff to them you are probably in deep doodoo. The aspire to be rich crowd and the merchants they patronize has really gotten clocked by the credit crunch and recession.
Consultants are only around when budgets are big, hemlines are up, and money is loose. Otherwise, they die on the vine.
Those who can’t do, consult.
Guess that’s why Madoff didn’t consult.
Madoff didn’t consult, nor did he do, unless you count how he “made off” with billions… of other people’s money.
Right, I’m sure his wife (the bookkeeper) and his sons (the traders) knew nothing.
“I know nothing, I see nothing, I hear nothing.”
– Sgt. Schultz
Hogan’s Heroes
Dear Ian:
I love the title: “Now Consultants Are Going Bankrupt”
The sub title should say “DUHHH…”
But seriously, in this failing economy I’m not surprised.
Well, at least you’re talking about what IS relevant. Thanks.
Later Ian…
This Recession/Depression will create a pool of remaining consultants that is optimized for productivity, profitability, and coordinated success.