Apparently, massive debt and declining sales did them in. The restructuring option did not even work for them. They’re done.
Declining sales, not because you and I are purchasing less sporting goods. Declining sales because sporting goods sold online has grown significantly over the past 3 to 5 years. Brick and mortar stores need effective strategies to address the growing online and changing demographic trends.
They didn’t, let’s learn from it.
As The Sports Authority did their business planning, someone must have seen this coming. I can’t believe a room full of smart executives could not see 3 to 5 years down the road.
It’s their job to have a long term perspective. All they had to do was ‘pay attention’.
Early in my career, like many young people I was full of ideas and questions. I would say to my boss, ‘we should do this … or, why can’t we do that? He said to me, ‘just remember, you must always sell a product with service for more than what it costs to make and deliver’. I started to pay closer attention to what I was suggesting and asking for.
My leadership tip is for you to pay attention to ‘everything financial’ so as to preserve a prosperous future.
Here’s a six – pack starter kit for you to consider. Pay attention to:
1. Your planning assumptions – make sure they are current and up-to-date.
2. The trends in your business – recognize what they are and have strategies to address.
3. The reasonableness of your goals – are they formed with common sense?
4. The effectiveness and appropriateness of your strategies – including the execution.
5. The thoroughness and accuracy of your competitive analysis – are you as good as you think you are?
6. How you teach, train and coach your people to be knowledgeable and to add value to the sales process – make it a great customer experience for your customers will keep coming back.
Extend the ‘paying attention’ message to your personal life as well. Spouse, kids, family, health, and financial.
Keep this quote from the CEO – Alex von Tobel nearby; ‘automating some of your finances can be incredibly convenient and is a great way to save time, but automating everything makes it too easy to go on autopilot and forget to pay attention to your personal finances’.
To be an exceptional leader, you’ve got to ‘pay attention’.