Research Question: Will new products and store openings drive Tumi’s growth or is the company relying too much on discounting?
- Same store sales at North American Tumi locations increased 7.2% year to year during 2Q, benefiting from sales of accessories and bags aimed specifically at professional women. International comparable store sales, which have become a point of emphasis for the company, increased 12.5% year to year.
- Tumi is in the midst of aggressive long-term expansion plans at multiple levels. The company recently announced plans to increase its successful U.S. airport stores from 4 to about 50, ambitions of increasing its full-priced locations from less than 100 to over 200, and also increasing its outlet store locations.
- Coach’s newest product, the Alpha Lightweight Large Trip Packing Case has opened to good reviews, but one customer raised concerns about its price.
- Price concerns led Tumi to increase discounting in the summer on its own website and discount retail sites such as Gilt Groupe, potentially driving sales earlier in the cycle at the expense of fall and holiday sales.
To gain insight into Tumi sales trends, with a careful eye on discounting, Blueshift with gather data from sources in the following silos: customers, retail locations, outlet locations, supply chain, and industry specialists.
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