Should Kit And Ace Sports Suit Wear Yellow When It Comes To Bottlenecks?

The closing trend of the retail industry in the US has swept away a young brand, which has been established for nearly three years.

Kit and Ace.

In 2014, it was co founded by Shannon Wilson and son of Chip Wilson, founder of Lululemon, and was positioned as a sports and leisure sport with technology as its selling point.

Brand.

Today, however, Hatsubasa Mitoyo's Kit and Ace plans to close all stores in the United States.

According to official Kit and Ace, the store is the result of the company's plan to concentrate its efforts on online and Canadian businesses.

However, considering that the clothing brands in the United States have been hit by store outlets in recent months, they have closed their stores. The new strategy of Kit and Ace is hard to convince. Is this a strategic adjustment or a situation?

Looking at the development of Kit and Ace, it will be found that this brand has been expanding rapidly in a short time.

Since its establishment in 2014, Kit and Ace has opened 61 stores in 5 countries and employs 700 employees in 2016.

However, this seemingly radical development strategy stopped abruptly in 2016. Kit and Ace announced at the beginning of last year that it had to lay off 10% of its headquarters in Vancouver and slow down its expansion.

At that time, Kit and Ace also said that it was necessary to shift the focus of work from opening new stores to brand building and expanding product lines.

CEO Paul Wilson said in its statement that the company, like technology start-ups, is still exploring and learning, and is constantly improving and adjusting its strategy. However, the brand plan will be profitable in 2018.

However, the brand in self adjustment is most afraid of meeting the environment that does not give strength.

As the nearest big market in Canada, the United States has been frustrated by the real economy recently. Wilson said: "we realize that the traditional retail world is changing. That's why we adjust our strategy.

We believe in the business model of Kit and Ace.

Looking ahead, we will be a stronger company, and fewer stores will need fewer employees. We are still very grateful to the staff for their creativity and commitment, and thank them for their contribution to the company. "

Today, Kit and Ace has closed 32 stores in the United States, leaving only 9 in Canada.

It is said that even at headquarters in Canada, the company has secretly laid off a certain number of personnel.

Such a situation will also gradually spread to other overseas markets. According to the world clothing and shoe net, stores in the UK and Australia will soon be closed. Consumers in the future can only buy on the Kitandace.com website.

It is hard to say whether such a strategy can help Kit and Ace regained its edge.

After all, its benchmarking brand is Lululemon, the sport brand that has made a lot of money in the past more than 10 years is now in a quagmire. Even though the recent earnings report shows that the group has recorded 9 quarters of same store sales growth, analysts still worry about its development, because female consumers are losing interest in sports and leisure products, and the competition is fierce in this field, and the profit margins are also shrinking.

With the cooling of "Athleisure", the foundation is not very stable. Kit and Ace may be in big trouble.

After the setback, Wilson decided to concentrate on cloth, such as cashmere in sports.

However, according to RSR retail analyst Paula Rosenblum, "studying history, it is easy to see the ups and downs of the market. We should think about where the market ceiling is, and whether there is room for you when it hits the bottom."

It seems that Kit and Ace can restore the general trend and can only give it to fate.

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