Shares of Crocs (NASDAQ: CROX) have lost nearly all of their value over the past year, as the rubberized clog-like sandal shoe fad comes to a merciful end.Adding to Crocs' problems was the proliferation of knockoffs being sold at discount stores and flea markets for a tiny fraction of what Crocs retailed for.
Now it's gotten worse: Crocs are being sold at discount stores for a tiny fraction of their retail price. This week's ad for Ocean State Job Lot, a northeastern discount chain that sells overstocks and factory seconds, advertises "These wildly popular shoes sell millions and inspire countless knockoffs. The ORIGINALS are now at Job Lot. Lots of styles & colors for men & women. $10"
That's very, very bad news for Crocs because it suggests a serious oversupply of the company's products at the retail level -- which will make it harder for the company to sell new products in the future. What retailer will order a new box of Crocs when he has so many on his hands he's dumping them at Job Lot?
The wording of this particular ad is especially scary: "Lots of styles & colors" and no mention of "Please hurry!" or "limited quantities!"
As it is, Crocs has quite a struggle to return to profitability and viability. Its auditor has suggested that it may not be able to continue operations. A network of customers already choking on excess inventory won't help matters.
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Reader Comments (Page 1 of 1)
3-26-2009 @ 3:26PM
Iridium said...
Instead of dropping the insane price of Crocs in the face of hundreds of knockoffs made out of the same material the company decided to say, "people will still buy our product because it is the original and best".
Well a pair of Crocs costs the company $.78 landed from China. They are perhaps the cheapest footwear to produce on the market today. They are an asian shower sandal. Hotels in asia give them away for free.
Companies in China that produce the knockoffs had to go nuts when they found out Crocs were selling for $30. Oh my god we can sell dollar shoes in America for $30.
The people running Crocs are greedy and deserve to go out of business. However the CEO already cahsed out and left with millions. Another stock scam that leaves hundreds of workers out of work and a CEO with millions. Are we ever going to learn?
3-26-2009 @ 7:34PM
winslow said...
......irridium
No, we won't learn.
I want Obama to start a Department of Ethics. Any politician, CEO, business owner, B of D, that is deemed unethical or conducted illegal activities, will be subjuct to intense fines , depending on their assets, or could be jailed.
Only when there is a penaly, will this stop.
3-26-2009 @ 7:20PM
dennis letizia said...
these are older models and colors i bought six pairs today,not any new or popular styles
3-26-2009 @ 8:18PM
Nicholas said...
Why not come to Canada? You can buy from Crocs direct at their Warehouse House for $10.00 Cdn. What a deal! Thousands of people have been lining up to shop.