![]() However, my analysis of why BBBY went bankrupt suggests a gigantic strategy misfire was the primary reason for its failure, rather than a difficult economy. ![]() Retailers - such as BBBY and David’s Bridal - as well as restaurants are filing for bankruptcy because they are “typically among the most sensitive businesses to challenging economic conditions,” the Times noted. This mixture of economic strengths and weaknesses aims the most pressure at specific industries. In April 2023, the 3.4% unemployment rate and a 4.3% rise in consumer spending - which accounts for 70% of economic growth - kept GDP growing at a modest 1.1% in the first quarter of 2023. ![]() “We are beginning a new chapter as a public company, and remain focused on our long-term strategy to build an iconic consumer brand, develop a more diverse product portfolio, and further build out an end-to-end supply chain platform,” Blue Apron CEO Matt Salzberg said in a statement accompanying the release.As inflation persisted - rising as high as 9.1% in June 2022 - the Federal Reserve Bank raised interest rates from near 0% to a range between 5% and 5.25%.įor heavily indebted companies dependent on consumers squeezed by persistent inflation, the drop in discretionary spending has contributed to their inability to meet their financial obligations. If the company continues to slash marketing spend in order to make up for its higher cost of goods sold, this very well could create further hits to Blue Apron's customer count.Ĭompany executives emphasized that their goal is to overcome these near-term issues and focus on Blue Apron's future. The company attributed this dip to a "planned reduction" in marketing. ![]() ![]() Higher food costs from seasonal produce also contributed to the higher-than-expected cost of goods sold.Īnother area of the report that is giving investors and observers pause is Blue Apron's customer count: while the 943,000 customer count marks a 23% increase year-over-year, the figure is down 9%. "These complexities have arisen within the last month as we continue to transfer more and more volume from our existing center in Jersey City to our new center in Linden." "We are working through unexpected complexities and cost that have arisen with the ongoing launch of our Linden facility as well as current product expansion initiatives," Brad Dickerson, Blue Apron's CFO, said during a conference call with analysts and investors Thursday morning. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |