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Have you noticed that just when a new retailer starts to do really well (current examples include American Apparel, Kitson) them embark on an expansion of stores. This expansion then leads to an oversaturation of outlets within a single neighborhood (think Starbucks) and then a contraction (think Gap). It seems so obvious from the outside that just when you get too big for your britches, you start to feel the pain. Good business management should focus on improving the retail experience of their current stores to grow revenue, and their products, rather than look exclusively to sell more - which always seems to come back and bite them. Eight Starbucks, 4 American Apparels, 3 Gaps all within 20 blocks just doesn't work - bad economy or otherwise. It's also a nuisance to consumers who struggle to find interesting mixes of brands they know and brands they don't, as they partake in the 2nd national pastime.