“Declining” is not a word you want to see when it comes to brand performance. It usually prompts two courses of action: save or scrap. For those that were previously strong but have failed to adapt to consumers’ changing priorities, there is a strong argument for the former. Revitalizing and repositioning a previously successful brand can restore its glory. In other situations, however, where a brand never won much market share within its category, or failed to grow a devoted following, there may be a compelling reason to scrap it altogether.
To figure out which approach is best, retailers should endeavor to understand the gap between their aspiration for the brand and its current performance. Profitability matters. If a brand has become unprofitable, the question is why? The answer will determine the best course of action.