It's a very small company right now but its got the right idea of providing a one-stop shop for specialty products catering to expectant mothers and young children.
What they've done is buy themselves some time. The challenge is, how long does it last? If you're still losing sales, those stores that are profitable today won't be profitable tomorrow.
It's about personalization. And it's very easy, so anyone can do it and not be intimidated.
If anybody can pull this off, it's Federated and it's Terry Lundgren and his leadership team.
Financially, it's not a bad quarter. The concern from a retail perspective is that top-line sales number. It's not where you want to be as an ongoing, viable retailer. ... Long-term, you don't want to be losing customers.
It's the ultimate credibility to say, 'Go see who we are,' .
This is a company that came from Rochester, N.Y., ... It's not like they came from New York City or some sophisticated place. A lot of their stores are in middle-of-the-road places. In the past five or six years, they've realized if they can get a combination of density -- a lot of people -- and income, that that's where they shine.
If you do that kind of advertising, you better be able to execute at the store level. If you don't, you're really going to lose those customers.
There's definitely a few strong performers out there that have stayed under the radar.
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