How Do We Expect Guess’s North American Retail Business To Grow Over The Next 5 Years?

-8.27%
Downside
25.03
Market
22.96
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We expect Guess’s North American retail revenues to rise by about 23% over the next 5 years. Below, we outline of the reasons for this.

na retail

Appointed in mid-2015, Guess’s new CEO, Victor Herrero had proposed several strategies to improve its store performance and expand the number of Guess stores in North America. Some of the strategies include:

  • The launch of VendorNet(R) Omnichannel technology to optimize inventory across its stores and distribution centers. This will allow the retailer to fulfill online orders with store inventory.
  • Guess’s new store related strategy includes gauging the performance of stores and enhancing investments in commercially important stores. Additionally, the stores will be segregated into three performance-based categories.
  • The stock checking would be made more rigorous to make more timely replenishments.
  • The company plans on maintaining an annual retail calendar so as to better target sales opportunities during mall events, promotions, or holidays.
  • Guess’s proposed increased stock keeping units will point towards the more successful products and help in building the new and rapidly growing categories.
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Have more questions about Guess? See the links below.

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Guess

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