Pacific Coast Business Times reports that Deckers is planning on opening more then 100 retail stores around the world over the next few years.
My concern about this: It's going to cost a lot of money to do this, with no certainty it'll work out. In our area (Deckers' home town) there have been a multitude of retail shoe stores that have disappeared.
Deckers is working towards building a new 150,000 SF headquarters in Goleta.
My concern about this: Is it really necessary to do this and, in the process, spend a huge amount of money to do this?
I guess I am concerned that the company might be making some foolish choices now. And as we look back in recent history, they over-estimated the demand for their boots . . . resulting in discounting at the retail level. The company has already stated, per news article, they expect 2012 profits to be down about 33% compared to previous year.
I actually like that they are opening stores, this way they are not at the mercy of the wholesale buyers; however you are correct they need to be careful on their choices and their record is a bit murky as of lately. Once again I re-iterate they need to get some real PR people and open up their channels of communication. they are off to a better start because they are implementing Oracle's retail tracking system, which will give them better reporting on sales, now they need to hurry up and report quickly. When running a business efficiency and knowing your market as well as knowing your customer is key (just like they know their products)
On another note, they also have one of the fastest roi when opening their own stores which is just about a year. If they keep hitting the mark with quality locations they will surely be ok. They also consistently have an extremely high dollar per square foot of income. If management keeps making or breaking these marks the "Brand" will certainly garner top dollar, and the investors will be rewarded, as the cash continues to roll in.