24/7 Wall St. Predicts 10 Brands You Won’t See in 2013

Growing up I remember visiting Blockbuster to stock up on videos every weekend.  Just today I drove by the former Blockbuster building, now vacant and boarded up.  24/7 Wall St. correctly forecasted the demise of Blockbuster two years ago in their annual list of 10 brands they expect to disappear.

Every year 24/7 Wall St. predicts well-known brands they believe will not survive the coming 18 months.  These predictions are based on: an increased cost of production, a decrease in sales and significant losses, the brand’s parent company admitting to a possible closing, bankruptcy, loss of customers, dwindling market share, and the sale of a company.

Last week 24/7 Wall St. announced their list of the 10 brands to disappear in 2012:

  1. Sony Pictures –Formidable competition from Apple, Nintendo and Microsoft face Sony Pictures and revenue has recently dropped 15%.  24/7 Wall St. predicts Sony Pictures will sell its assets and cease to exist by the end of 2012. 
  2. A & W – A&W, founded in 1919, may soon no longer be a fast food option.  Parent company Yum! Brands, also the owner of KFC, has had the company on sale since January.  The 322 outlets in the US cannot compete with huge fast food chains like McDonalds. 
  3. Saab – Formerly owned by GM, Saab’s difficulties lie in being too middle ground.  The cars cannot compete with the prices of inexpensive brands, the design of high-end sports cars, and the variety offered by large car brands.  The outlook for Saab is dim with the new owner, Spyker, running out of money and less than 50, 000 cars a year sold.  
  4. American Apparel – This clothing brand, which reached revenue of $545 million dollars in 2008, reported a first quarter net sales of $116.1 million dollars this year.  Lack of financing is a major problem for American Apparel, which cannot compete with large, well-funded clothing stores. 
  5. Sears – Last quarter Sears Holdings, the parent company of Sears and Kmart, reported a whopping net loss of $170 million.  24/7 Wall Street predicts Sears Holdings will merge Sears and K Mart and keep the Kmart brand, which earns more. 
  6. Sony Ericcson – Sony Ericcson, once one of the best earning handset producers, cannot compete with the increasingly popular smart phones.  Since 2008 Sony Ericcson’s sales have fallen by 54 million units.
  7. Kellogg’s Corn Pops – The crispy and sweet cereal’s sales have fallen 18% over the past year due, much in part, to an increase in health awareness and private label cereal sales.  Not only is Kellogg’s having trouble selling Corn Pops, but also a spike in the price of corn has made them more expensive to produce.  Kellogg’s Corn Pops may be one box you won’t find in the cereal aisle in 2013.
  8. MySpace – Who doesn’t have a Facebook page?  A better question might be who does have a MySpace page anymore?  With the MySpace brand dying out parent company News Corp has had the website for sale since February and alluded that they may close MySpace if they do not have a buyer.
  9. Nokia – 24/7 Wall St. declares, “Nokia is dead. Shareholders are just waiting for an undertaker.”    Although Nokia still had a market share of 25% last quarter, its market share in the same quarter last year was almost 31%.  Nearly everyone expects a larger company will take over Nokia in the near future.  The most likely buyers of Nokia are HTC, Microsoft, Samsung and LG Electronics.
  10. Soap Opera Digest – This once popular newsstand regular now has a small annual circulation of 500,000.  With the cancellation of many popular soaps and the excess of fan information online, by 2013 you are not likely to see Soap Opera Digest while waiting in line at the grocery store. 

Are you disappointed or surprised to see any of the above 10 companies on the list of brands to disappear in 2012?  24/7 Wall St. has misjudged some brands such as Kia and BP, which are still very visible and alive.  Over the next 18 months keep an eye on these names and see if they disappear or survive.

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Posted on June 28, 2011, in Global Biz, Market Trends. Bookmark the permalink. Leave a comment.

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