Cigarettes, Lot18, Fred Franzia and Wine Inventory

Have you ever found yourself disbelieving your own eyes or being flabbergasted at a decision that defies logic? For instance, what would happen if you sold all of your wine for less than it cost to produce? Or how about making legislation that made the possession of cigarettes illegal? What would you say if someone told you they wanted to try and change WallMart into Nordstrom? Those are all placeholders for a discussion on business strategies and odd news from last week.

The Mystery Surrounding Lot18's UK Closure

The past week's change in strategy announced by Lot18 to close their UK efforts was curious, particularly when you consider they have been there only four months. Its a mystery worthy of Scotland Yard if you ask me. Repeated calls for an investigation have fallen of deaf ears. There are some clues however: The closure follows a couple small rounds of layoffs and the abandonment of some early initiatives directed at other luxury areas. In their press release, Lot18 suggested the reason for the closure:

‘Unfortunately, the supermarkets’ stranglehold on the UK market proved too powerful for us to compete with and we have not experienced the anticipated growth rate.’

A likely ruse it is. The supermarkets did it! They strangled Lot18 and I'm guessing the deed was done with a rope in the produce section by Colonel Mustard! Seems very suspicious to me. I called their CEO Philip James for comment on Friday but at press time there was no response so we are on our own to solve the mystery. What's the real reason behind Lot18's U.K. closure? Elementary my dear Watson.