Edifice complex.
Edifies complex is a very debilitating disease, a malaise if you will, that infects corporations both large and small, from the boardroom, down to Wall Street.
Yesterday I read the story of Abercrombie and Fitch closing seven of their locations.
These seven Abercrombie and Fitch locations where these flagship stores, represented 10% of their total real estate spend every year, but delivered less than 1% of sales.
How could the management of Abercrombie and Fitch allow this to happen?
How could they, year over year, justify the amounts of money that they were spending on this flight of fancy? How could they? And how, that the board let them get away with it?
This is the epitome of edifice complex.
And it is sick.
I am not a holder of Abercrombie and Fitch stock. However, I am most incensed by this stupid plunge into silly stranded costs. Hopefully, Abercrombie and Fitch has learned a valuable lesson.
Are other companies paying attention?
What can we do to stop this?
© 2002 – 2020, John Obeto II for Blackground Media Unlimited
