In Q3 2023 Red Lobster lost $11M in a single quarter by not understanding 1) its costs, and 2) customer demand; and by focusing on top-line revenue instead of maximizing its contribution margin. There is a popular misconception that only small brands make this type of mistake but Red Lobster provided us with a "real-life" anecdote disproving that misconception. Let's dive into the details!
In 2021 Thrasio was valued at $10 billion. This kicked off a mad Wall Street frenzy to fund every random person who wanted to start a "me-too" Amazon aggregator regardless of talent, expertise or ability. Like Icarus who flew too close to the sun, the entire thing has come crashing back down to Earth. CB Insights provides a research deep dive into Thrasio's rise and fall. Our co-founders have deep experience participating in the evolution of this industry since 2020... having seen both the promise, challenges and flaws of the entire aggregator industry.
Modern Retail recently reported that for the remainder of 2023 brand aggregators are focused on making their businesses more efficient if they want to survive