Only The Strong Survive: Retail Sector
CNBC Interview on April 8, 2009 3:45pm ET
CNBC Interview on April 8, 2009 3:45pm ET
The downturn is creating a new range of opportunities for the retail
survivors, with Love Goel, GVG Capital Group Chairman and CEO; and
CNBC's Margaret Brennan.
survivors, with Love Goel, GVG Capital Group Chairman and CEO; and
CNBC's Margaret Brennan.
GOEL: "The death of retail has been greatly exaggerated. Contrary to headlines, the actual data is quite different - the retail sector
actually grew in 2008, almost its 15 year median growth rate of 3%"
GOEL: "Retail is doing just fine. Some badly run or retailers with bad business models or those in overstored categories are in
trouble."
GOEL: "I do not know a single retailer that is in trouble because of the economy. If you look at all the retailers that have gone
bankrupt or are in deep trouble, you can trace their problems to far before the economic crisis. The economy has just highlighted
their problems or marked their demise."
GOEL: "Retailers need to adapt to changing consumer trends to survive. If they are not working the web and mobile channels they risk
waking up one day and discovering, for example, that the book business has gone to Amazon, the music business to Netflix, the 2 carat
diamond business to Blue Nile, the women'sshoe business to Zappos, the list goes on and on..."
GOEL: "Retailers left standing in sporting goods, consumer electronics, jewelry, home goods, teen and women's apparel are going to
gain significant market share as their weak peers disappear over the next few quarters."
GOEL: "We are entering the golden age of investments in the retail sector - where very attractive retailers can be acquired for
very reasonable prices; combine that with the unprecedented growth opportunities in this sector - and you have the recipe for
great returns for sector savvy investors."
actually grew in 2008, almost its 15 year median growth rate of 3%"
GOEL: "Retail is doing just fine. Some badly run or retailers with bad business models or those in overstored categories are in
trouble."
GOEL: "I do not know a single retailer that is in trouble because of the economy. If you look at all the retailers that have gone
bankrupt or are in deep trouble, you can trace their problems to far before the economic crisis. The economy has just highlighted
their problems or marked their demise."
GOEL: "Retailers need to adapt to changing consumer trends to survive. If they are not working the web and mobile channels they risk
waking up one day and discovering, for example, that the book business has gone to Amazon, the music business to Netflix, the 2 carat
diamond business to Blue Nile, the women'sshoe business to Zappos, the list goes on and on..."
GOEL: "Retailers left standing in sporting goods, consumer electronics, jewelry, home goods, teen and women's apparel are going to
gain significant market share as their weak peers disappear over the next few quarters."
GOEL: "We are entering the golden age of investments in the retail sector - where very attractive retailers can be acquired for
very reasonable prices; combine that with the unprecedented growth opportunities in this sector - and you have the recipe for
great returns for sector savvy investors."
© 2009 GVG Capital Group.
All rights reserved.
All rights reserved.
