M02 Recap

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For those who missed M02…

We had an organic discussion about department stores and the future of brick and mortar retail space in part a response to Forever21 filing for bankruptcy. 
  • Retail spaces should be used to store goods customers would not buy online
  • Brick and mortar stores should stock space with items that are prized for their quality, feel, and purchasing experience. 
  • Forever21 bought too much physical retail space, stocking it with goods people often felt comfortable purchasing online. Sales couldn't keep up with the costs of maintaining physical retail spaces. 

We began diving into a discussion about business plans that continuously lose money but considered why investors continue to invest. 
  • Consider UberEats, DoorDash, GrubHub etc. They all have similar business models and they fall within the same pool. We predict that within the next 2-3 years, only one of these companies will survive, considering the incredible debts and loses.  What will distinguish these companies from each other? Who will ultimately win?
  • Many investors believe not in profit first, but in winning over market share. In winning over the market, they believe the profits will come later. 
Consider WeWork. Why is it still alive? How do/will they have to innovate to stay in the game?


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