As new brands are brought to life in the evolution of various verticals, others will inevitably give up the ghost. While obsolesence related to industrial shifts is the No. 1 killer of outdated concepts or companies, other factors may guide the executioner's hand, including failure to innovate, cash flow issues and heavy competition.
Each year, 24/7 Wall St. identifies 10 important brands sold in America that it predicts will disappear within a year's time. This year’s list reflects the brutally competitive nature of certain industries.
Among those potentially headed into obscurity are two magazines—Martha Stewart Living and Road & Track. While some magazines weathered the multiyear decline, these two suffered sharp drops in advertising revenue over the past five years. Magazines also carry the heavy legacy costs of printing, paper and distribution—a problem not shared by their online-only competitors.
In the realm of consumer electronics, the Barnes & Noble Nook may be done for, as the e-reader business is shrinking and the Nook competes with better-selling products made by Apple and Amazon. Also in line for final goodbyes is the Olympus digital camera, as camera sales continue to be eroded by smartphones with cutting-edge built-in cameras.
Another industry with two brands on the list is automobiles: Mitsubishi and Volvo are reportedly set to follow Suzuki to the big junkyard in the sky.
The full list of brands predicted to fail this year: JCPenney, Nook, Olympus, Martha Stewart Living magazine, LivingSocial, Volvo, the WNBA, Leap Wireless, Mitsubishi Motors and Road & Track magazine.
Last year, 24/7 Wall Street correctly predicted Suzuki, MetroPCS and Current TV would be out. American Airlines, another predicted failure, is part of a new company through its combination with U.S. Airways, though the American Airlines name lives on. Talbots, which also made that list, was acquired by a private equity firm, and also as expected, Research In Motion is no longer a brand. Predictions regarding Avon, the Oakland Raiders and Salon, however, were incorrect.