Ronald Friedman, Co-Leader, Retail/Consumer Products Industry Group, Quoted in LA Times Article, "Frederick's of Hollywood Closes All Stores, Strips Down to Web."
Los Angeles Times
By Samantha Masunaga
Excerpt:
Frederick’s of Hollywood Group Inc., a Los Angeles lingerie brand that struggled to compete with rival Victoria’s Secret, has closed all of its stores and will do business only online.
“We no longer have store locations,” the retailer said on its website, but added that its online store offered the same selection of merchandise.
In 2014, Frederick’s operated 94 stores and a catalog business, in addition to its website.
Ron Friedman, a retail expert at consulting and accounting firm Marcum, said he wasn’t surprised by the store closures.
“As a company, I think they became old and stale,” he said. “Victoria’s Secret has been a home run compared to them.”
But Frederick’s can be profitable online, he added, if it comes up with an effective marketing strategy using social media to get the word out and attract customers.
“An online business is nothing more than another retail store without fixed rent,” he said. “They have to really focus and hire people that really understand the online business.”
