According to some reports, Idaho based Coldwater Creek finished 2011 with a net loss of at least $124 million! They also saw a 20% drop in sales in their last quarter of 2011, after a 28% drop in sales the quarter before that!
The problem seems to be that Coldwater Creek’s prices, and quality of goods, are targeted to mid range consumers.
One big factor with this bad economy is that the middle class is shrinking, with some lucky to make it to the upper classes, but most ended up in the lower classes. As a result consumer spending is matching that trend. Only low end and high end retailers seem to be doing better. Those retailers still catering to mid level consumers are suffering.
On January 3, the Coeur d’Alene Press wrote about Elizabeth Turley, a former Coldwater Creek and Chico’s employee, who started her own clothing business in Sandpoint, Idaho.
The company is called Meesh & Mia, and is targeting consumers that Coldwater Creek probably should have; young college women. Meesh & Mia focuses on providing fashionable women’s clothing with university logos, and with the bad economy pushing a lot of women into college, business is booming.
Up ’till Meesh & Mia, most college clothing was targeted towards men and athletes. But Turley also credits exposure in the national media with her company’s success, and blames the national media for troubles at Chico’s and Coldwater Creek: “It was kind of funny, because I had tried without any success when I was at Chico’s and again at Coldwater Creek to get placement on the Today Show. And then here we were, little Meesh & Mia, making a debut. Kathy Lee and Hoda touched our product and the guest, a Southern Living editor, ever so briefly said, “great companies like Meesh & Mia.'”
Some stock analysts tried to end 2011 by sounding upbeat about Coldwater Creek, but it looks like Meesh & Mia is where to invest your money. Turley expects to double her employees in 2012, as well as expand her customer base by adding 135 colleges and universities to her client list.
“It’s remarkable that no one has done this before! We’re certain that others will follow our lead, but it’s a $10 billion market, so there’s room for competition.”-Elizabeth Turley, Meesh & Mia founder