❝Quote of the day❞: QVC bankruptcy
Neil Saunders, Managing Director of GlobalData:
“QVC Group, which was once the retailer of the future, has rapidly become the retailer of the past.
The concept of live shopping – which QVC helped to pioneer – is far from dead. However, where and how it is conducted has shifted dramatically. QVC moved too late and too indecisively to capitalize on the change from television to digital channels.
Arguably, QVC always had the infrastructure to service a newer model, but it failed to adapt its content, audience and reach strategy accordingly. As a result, it did not capture younger consumers where much live spending growth is coming from. It also increasingly felt old-fashioned and a little dull, even to its more mature audience.
The shame of it is that even QVC’s traditional business, while shrinking, still has some viability. Unfortunately, QVC’s ability to capitalize on it has been compromised by eye-wateringly high debt levels. This has allowed the company very little room to maneuver and makes every sales decline all the more painful. Not only has it been unable to make the investments required to shift the business, but it has also struggled with cash flow and day-to-day operations.
Bankruptcy may allow the necessary restructuring to give QVC the room to operate with better financials. However, it does not solve the need to reinvent and become relevant.”
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