Tuesday, October 13, 2009

Kaboodle conundrum

photo.jpg, originally uploaded by Kim Pallister.

Walked by the 'Kitchen Kaboodle' while out at lunch today. Noticed they've reduced to a 4-day work week in an effort to cut costs, and then promise to pass some of this to the consumer.

Interesting that when many retailers (e.g. grocers) were faced with increased competition, they chose to increase their hours of availability, not decrease them. Doubt they're both right.

My guess, KK is wrong. I'm not sure many who shopped there were price-sensitive, plus I'm not sure how genuine the 'savings' pass down is when the markup was already hefty. And now they've proven they are ~60% as convenient as their nearest retail competitor, and 3 days a week they are less convenient than Amazon, whom I'm betting beats them on price.

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