1 / Bose announced it is closing approximately half of its retail stores around the world (119 out of 249 including all stores in the U.S.). A few things about this announcement don't sit well with me. theverge.com/2020/1/15/2106…
2 / According to Bose (part of its statement shown below), customers are increasingly buying Bose products online and through other retailers.
OK.
Sifting through the PR speak, Bose's brick-and-mortar retail operation was likely experiencing declining sales & foot traffic.
OK.
Sifting through the PR speak, Bose's brick-and-mortar retail operation was likely experiencing declining sales & foot traffic.
3 / On paper, closing stores may seem to make sense for Bose. The money spent on stores can go elsewhere. Management is confident customers will continue to buy Bose products through other outlets (including Apple). However, there is reason to be skeptical of that logic.
4 / The future of retail is owning both an online (direct-to-consumer) & brick-and-mortar presence. Seamless integration is key. The brick-and-mortar piece is an experience layer meant to sell a company's intangibles. For an audio company, that experience layer is vital.
5 / Bose's problem is that the brand is losing steam in the current marketplace. The company doesn't have what it takes to compete. AirPods anyone? Bose products are increasingly viewed as tired and niche. Customers (existing and new) see a declining desire to visit Bose stores.
6 / Closing stores looks to be a shortsighted decision by Bose that likely reflects years of R&D underinvestment that is only now coming to the surface. Considering how competition will only intensify going forward, Bose is not in a great position.
