At this year's WWD Virtual Apparel & Retail Summit, First Insight CEO Greg Petro and Jonathan Duskin, CEO at Macellum Capital Management presented on How Retailers and Brands Get Valued Post-COVID. Download the presentation recording to hear more about retail metrics and how to drive and sustain value, including what companies can do now to mitigate risk and positively impact business in 2021.
- Greg Petro, CEO at First Insight
- Jonathan Duskin, CEO at Macellum Capital Management
Highlights from the presentation include:
Jonathan Duskin, CEO at Macellum Management on the Notable Differences between Pre and Post-COVID.
“Trends toward omnichannel have accelerated. The companies that are able to perform omnichannel at its highest level, BOPIS or curbside pickup, are being accorded a higher valuation because it's exactly how the customer wants to shop. They want convenience. There are the Haves and the Have Nots. The Have Nots are the businesses that have been inconsistent over time with inconsistent and volatile history. Balance sheets are important, companies with a stronger balance sheet are being recorded at a much higher valuation as we look out to 2021.”
Greg Petro, CEO at First Insight on what companies should be doing in 2021.
"Variability is the highest risk factor to valuation. The concept of not having visibility represents an enormous challenge for many companies and executives. It’s clear that the valuations are different. Decreasing variability or, at a minimum, understanding that variability and where the risk factors are is a critical component to driving shareholder value and sustainability of the business. Consumers have fragmented at a much higher rate than anyone has anticipated. Their behavior has changed more rapidly than we’ve ever seen. It’s important for companies to understand that and consistently keep a pulse with the consumer of what’s going on and where they are headed."
Jonathan Duskin, CEO at Macellum Management on the Two Different Levels of Core Competencies That Drive and Sustain Value.
- The sustainability of the business model.
It’s clearly about consistently executing our plan and delivering results. Investors don’t like surprises. Even positive surprises. They want a long-term roadmap that’s consistently executed against and they want to know how growth is going to occur and how share is going to be taken to sustain that growth.
- The sustainability of the valuation.
Investors want to see stability and low volatility. They want to see consistency and transparency. They want to know how you’re doing it, the details behind how you’re delivering your results. They need to understand that it’s replicable.
Greg Petro, CEO at First Insight on How Companies Can Mitigate Risk and Adapt More Quickly.
"The one thing that’s changed in retail is that we now have capabilities that allow us to communicate to consumers and other shareholders on a consistent basis at scale so we can take that information in and validate assumptions, pressure test them and ensure that we can deliver on the results so we don’t have surprises."
Download the presentation recording to learn more about How Retailers and Brands Get Valued Post-COVID.