Q Talk

[Jaspertimes]

My take from the article is that QVC in its present form is on borrowed time.  Their old customer base is relatively stable but they are getting no new customers.  And I can believe that with so many other places to shop that offer free shipping and free returns plus QVC has limited brands.  I know my millennial kids would never consider going to QVC to shop.  For them and millions of others, it's Amazon all the way.  

[Desertdi]

General Motors just announced they are offering buyouts to most salaried employees.    This will enable them to break into the EV industry.

As @Kachina624  previously mentioned, Qurate is not the only company looking to improve their future prospects.

[Nataliesgramma]

I think they need to "trim the fat"....

Go back to one channel....one host......

Dump the "free exchanges" not working. By the time it gets back....item is usually sold out.

Improve shipping time......7-10 days is unacceptable

If they snag a new customer and shipping is slow, they get the wrong item and a refund takes weeks.....that new customer will go elsewhere...

[geezerette]

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@tiny 2 wrote:

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@ellaphant wrote:

https://seekingalpha.com/article/4585610-qurate-retail-struggling-business-tough-times-ahead

If link doesn't work go to 

seekingalpha.com 

and look for Qurate article.

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@ellaphant 

  Scroll down. Read some of the other articles. Some are more specific to QVC and HSN. Apparently they have always carried a lot of debt but had plenty coming in. Now they have tremendous debt coming due. I also read that when they purchased HSN that somehow it was over valued by a lot then discovered that they paid way to much for it. Various articles have different information that some others do not. Some have questions and answers at the end where some people ask the author specific questions. You can also google and come up with some articles.

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Exactly.  Business articles are like political articles--everyone has an opinion and their analysis doesn't necessarily come to the same conclusions.  

While I agree that QVC has some huge problems, the same site has posted analyses on why it might not be a total disaster.  The aging base demographic is declining but doesn't account for the rapid decline in the company.  If that were solely the problem, there would a slower decline.  

Customers are leaving the company because of reasons under QVC's control, like poor quality and customer service, poor shipping practices, general poor execution all around.  All subjects we as customers have been discussing for years now.

[RespectLife]

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@ellaphant wrote:

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@Kachina624 wrote:

Well, QVC is not unique and is right there with all the rest, struggling to stay above water.  @ellaphant   Do you know of a single one that is going great guns and making lots of money?  They've all had layoffs with probably more to cone.  You speak as though they are the only one with an earnings deficit.

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Read the article. A big reason Q is tanking is they have a loyal core base but are not expanding their new customer base. They've been doing poorly for a decade.

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Which is WHY they had the new customer incentives that people on these boards just didn't get or accept.

[RespectLife]

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@Nataliesgramma wrote:

I think they need to "trim the fat"....

Go back to one channel....one host......

Dump the "free exchanges" not working. By the time it gets back....item is usually sold out.

Improve shipping time......7-10 days is unacceptable

If they snag a new customer and shipping is slow, they get the wrong item and a refund takes weeks.....that new customer will go elsewhere...

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@Nataliesgramma 

I have NO problem with free exchanges and have done it many times.

You have to contact EZ returns and within a couple days, the replacement is on its way.

[JoyFilled Warrior]

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@ellaphant wrote:

https://seekingalpha.com/article/4585610-qurate-retail-struggling-business-tough-times-ahead

If link doesn't work go to 

seekingalpha.com 

and look for Qurate article.

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~~~~~~~~~~~~~~`

@ellaphant 

A BIG OLE THANK YOU for this article.

I could tell by the continued, consistent "ear marks"  by QVC, that they are "going down."  But reading this article solidifies that instinct I had.

It's soooo sad that the "tethered HSN" might be "taken down with QVC," when IMHO HSN is soo much more, all round competent!  I'm hoping for a HSN  miracle.

BTW, for those who want to read this GREAT article,  you dont need to "create an account" as they offer.  Just go thru your Facebook, or Google, Gmail, & you can read it w/o an acct there.

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 (here's a small taste of this article referenced above)  It's a great article!

(NOTE:  I've manually removed ALL LINKS to the following article (fr url above))

"Qurate Retail: Struggling Business With Tough Times Ahead

Mar. 08, 2023 10:41 AM ET 

Qurate Retail: Struggling Business With Tough Times Ahead

Mar. 08, 2023 10:41 AM ET  Qurate Retail, Inc.

"Company description

Qurate Retail, Inc. (NASDAQ: QRTEA) is a company that operates in the video and online commerce space across North America, Europe, and Asia. They primarily sell consumer products through T.V. shopping programs, mobile, and online. Its brands offer a wide variety of products, such as apparel, home goods, and beauty products.

Qurate Retail's portfolio of brands includes QVC, HSN, zulily, Frontgate, Garnet Hill, and Ballard Designs, among others.

 

Share price

Qurate's share price has achieved a monumental decline in the last decade, with the company peaking at a c.$30 share price before declining to below $2. This has been driven by weakening financial performance and the company's struggle with remaining relevant in the modern day. Our objective is to assess if the company has any hope for a renaissance or if it will quietly decline to obscurity in the coming years.

Death of TV

Cutting straight to the point, the biggest headwind the company faces is the death of the traditional cable television service. Qurate reaches hundreds of millions of people through TV packages yet the number is declining quickly as consumers increasingly consume online content and utilize streaming services. Further, this has contributed to changing trends in the way TV is consumed, with less "browsing" TV channels but rather browsing shows/movies. This will contribute to declining traffic to Qurate's channels, with this only increasing as the amount of tech-savvy individuals grows. Our view is that this is an irreversible trend which will only diminish the number of new customers it can reach.

Products offered

One of the fundamental issues with the company outside of macro/industry factors is its product offering. The company's offering, beyond a select few brands, is dire compared to current industry trends and tastes.

Notable brands (Qurate)

This is problematic for many reasons but the biggest being is that consumers are not going to find their website when searching for products they are looking for. The biggest attraction for a retailer is its products, even before price. If Best Buy (BBY) didn't sell LG or Samsung TVs, it would have no hope of competing against any of the companies in its industry.

E-commerce shift

The retail industry has seen a major shift in the last decade with customers increasingly choosing to shop online. The COVID-19 pandemic has accelerated this trend, with more consumers realizing the convenience benefits that come with e-commerce. Qurate response to the e-commerce trend was to develop its online presence, primarily through QxH, which has allowed the company to modernize. The problem with this is that consumers who shop online are very different from their core audience. Although many of their core customers use their website, growth in this segment has not been at the level required because the wider public does not see the value they provide above and beyond the current retail offering. The nature of e-commerce creates transparency, with consumers able to shop for the best prices, brands/products, delivery dates, and added benefits. This goes against how the T.V. sales channel operates, where it's more about traditional sales tactics. E-commerce puts the power in the hands of consumers.

In terms of competition, Qurate faces significant challenges from established e-commerce giants such as Amazon (AMZN), as well as more specialist retailers such as Etsy (ETSY). These companies have significant resources and technological capabilities, which differentiate their products beyond just price, allowing them to carve out market share. Qurate's brands just do not have anything compelling about them, making it incredibly difficult to re-invigorate growth.

Customer profile

QxH's customer data supports the developing view of the business we have. The company's core segment is its existing customers, with little in the way of new customers or returning customers following a past purchase."

>>>>   This article Continues!!  <<<<

>>  My CUT & PASTE stops here, but there's MUCH MORE to read <<

NOTE:

(Use your Facebook or Google, Gmail  acct to read more of this terrific article.  You do NOT need to create an acct here.

Find out what's going on with where you spend yr money & yr future purchases.)

[Snoopp]

I think their price point is too high for many of their products.

[Tissyanne]

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@MW in Iowa wrote:

QVC isn't failing anymore than almost any other retailer , People do watch less cable for sure , and stream more than ever. There are 800 stores closing this year from a variety of  retail. I am not shocked about lay offs , but i am still scratching my head at the choice of Carolyn though ,   But there are always things we don't know.

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@MW in Iowa , this is off topic, but did you ever get your breathing problem diagnosed? I have been experiencing this, and was wondering. 

[LisaKeith]

With the stock market down turn yesterday and today, Qurate Retail, Inc. stock is down to $1.10.  

Yes, that's ONE DOLLAR.  That should tell us everything we need to know. 

On the flip side, grab some Qurate stock while it's on sale.  Then maybe you can make a difference.