Valuations & Acquisitions: Tough Time to Compete, Worse Time to Sell

So what’s the moral of the story? “The most important mistake we made was to serve such a narrow customer group — men’s apparel,” Kirsch says. “Women control more than 80 percent of the household discretionary income.”

When household budgets fall, purchases of men’s apparel dry up. As Kirsch describes it, the woman of the house rationalizes: “He has dozens of pairs of the same Chino pants or Oxford shirts, and they all look the same. He doesn’t really need anything.” On the other hand, he says, “she continues to buy for herself.”