This Week in Retail – Episode 33


After a series of unfortunate events and controversial ad campaigns, American Apparel has filed for chapter 11 bankruptcy. The company has struggled with profits over the past couple of years, and is reportedly $300 million in debt. The company posted a 17% drop in sales from Q2 last year, and hasn’t been profitable since 2009. Not to mention several legal battles against them and plenty of bad PR involving inappropriate advertisements and alleged sexual harassment.
In other surprising news from this week, is upending its entire business plan by removing its annual membership fee. The company, who is known for its attempt to disrupt the eCommerce industry and take on Amazon, will have to resort to minimum margins from its incredibly low prices. The removal of the fee should attract more shoppers to the store, but time will tell if the company’s low prices will be enough to overthrow Amazon as an eCommerce leader.


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Min-Jee Hwang

Min-Jee is the Marketing Director at Wiser, a dynamic pricing and merchandising engine for online retailers. She has extensive experience working with SaaS companies and holds a BA from Carnegie Mellon University and an MBA from NYU Stern.