Gary,
Sorry for the delay in responding.
TSA has several key problems.
Most importantly- They have a concentration of stores in the ultra competitive Northeast US. In the NJ area especially, TSA has to compete with Just for Feet, The Finish Line, Foot Locker (and their various offspring), and a variety of quality smaller shoe stores. The competition, combined with a soft year or two of demand for sporting goods, especially footwear, has taken its toll. Michael Jordan retiring, and the "brown shoe" phenomenon have'nt helped either. Just for Feet entering the tri-state area may have been the final straw. (As a sidenote, FEET and TSA are semi responsible for each others stock price drops)*If anyone is interested on my FEET analysis, just let me know:-)
Prior to FEET buying the Sneaker Stadium stores, I already felt TSA had opened stores too close to existing TSA stores. They were clearly cannibalizing their own business. When FEET redesigned the Sneaker Stadium stores, many of which are within a mile of TSA stores, the bloodletting became much worse. First, the old Sneaker Stadium's ran going out of business sales, which flooded the market for a time. Then, when FEET began reopening the locations, they had sales of their own. All these sales hurt TSA. So that's part of the problem.
Next-TSA stores have MULTIPLE problems.
First, their product selection is confused. They do not focus on high end, newly released product, or discount items soley. The store is a mixture of new release Nike shoes at full retail price, or bargain basement closeouts. The same statement holds true for clothing. They need to focus on what they would like to be, and to whom they are targeting. (Yes I read the latest press release, and I disagree with TSA. FEET just ran a 30% off all kids shoes sale, which leads me to believe they are not selling like hotcakes. Also, I don't believe they should target women and children. IMO, women and children would prefer a smaller, friendlier atmosphere.)
Second, their customer service sucks. It is painfully obvious that you are in a big box retailer when you are in a TSA store. Cash register staff could care less about thanking you, and finding a knowledgeable person to answer a question is next to impossible. I have wandered aimlessly for long periods of time in their stores, and rarely get asked if I need help. I could go on and on about their customer service problems, but I won't.
Third, product selection. As mentioned above, their product selection lacks focus. It is very difficult to be all things to all people, even as a big box retailer. I would recommend they pick an area, and concentrate on it. (They seem to have done that, just not the area I would have chosen)
Fourth, their footwear layout is the worst I have ever seen of any store selling anything, anywhere, anytime. Ever, ever, ever. I cannot stress this enough. You cannot see from aisle to aisle, which means you cannot see ALL your choices at one time. You need to wander up and down aisles that you cannot see over to make your choice. You don't even know if you which direction to go in for which category. The self service plan they have going is horrible. **Changing this layout to one where all the shoes are displayed on a wall, with customer service people able and willing to get your shoe, and offer advise, would increase sales dramatically. The additional cost of employees and store redesign would more than pay for themselves in a season, two tops.
I have plenty more to say, and would love to be the person responsible for turning TSA around, but this gives you a basic idea of their problems. I would highly recommend they focus on managing their inventory better, focusing on higher margin core products, redesigning their shoe departments, and make customer service priority one. Footwear, and sporting goods in general have become a commodity. The only factors to distinguish a retailer after price, is location, selection, appearance, and SERVICE. TSA needs to address these points, and make adjustments.
Jason W
* I hold NO position in TSA. |
