Comments on: Did The Stores Really Do That Badly?

By: Mitch

Mitch — Tue, 06 Jan 2009 02:12:20 +0000

I don’t know anything about Goody’s, as I don’t even know what they sell (never heard of them before), but I’m sure we’ll all know about them if they fold.

I guess my question, being non-retail, is why businesses get themselves into a position where they have to rely on credit in that fashion? Is it that they’re betting on themselves so much that they’re playing free and loose with the credit, or are their margins so tight that they know they can make it usually with a little boost?

By: Mitch

Mitch — Tue, 06 Jan 2009 02:10:13 +0000

Thanks for your comment, Tim, and I think you’re right, people have gotten used to trying something else rather than spending money they may not really be able to part with, and it’s going to take some very big things to make them let loose of that cash.

And I’m also one of those lazy shoppers, which was pretty smart when gas was around $4.50 a gallon.

By: Justin

Justin — Mon, 05 Jan 2009 23:49:24 +0000

I manage 10 retail shopping centers, so I can attest to the pain that many of these retailers are feeling. The reason that so many are failing right now has less to do with profitability and more to do with liquidity and lack of available credit. Sure, many chains are losing money right now, but the creditors are not giving them the cash to see them through and they are being forced into bankrupcty. Most of those that have gone under like Steve & Barry's and Linens N Things were weak to begin with...so in that respect, the strongest and best stores will be left standing. I'm sure that a handful of good retailers will bite the dust earlier than they might should have because of the difficult credit markets. P.S. One more to add to your list of those in trouble...Goody's. I think they will be back in bankruptcy by the end of January and will probably end up liquidating. Justins last blog post..Increased Holiday Web Traffic Failed To Produce Sales

By: Tim Manni

Tim Manni — Mon, 05 Jan 2009 19:10:52 +0000

Mitch,

Nice Post…I agree, I don’t think the lack of choice is the worst thing, it seems like there are several teen-oriented stores that sell the same type of clothing as A&F anyway. Since there are no Walmarts in my immediate area, I shop at Target whenever possible (essentially the same store). Why pay $18 for a CD at FYE, when you can pay $13.99 at Target? I now buy most of my paper products and drug store items there as well because they’re so much cheaper. Consumers aren’t stupid — we’ll shop wherever prices are cheapest. Plus the convenience of the “one stop shop” is a benefit. Yet, don’t underestimate consumer laziness — I’ve shopped at more expensive stores many times, purely because of the proximity factor.

My holiday retail experience was that the stores we packed! Yet, as Rick said, he and a lot of others chose to shop online.

There’s a lot of hype around this holiday retail report. The preliminaries have already been poor. My attitude is that “it is what it is.” The consumers’ mentality has changed, and it may be a while before it corrects.

Thanks,
Tim

Tim Mannis last blog post..Maybe It’s Not Quite as Bad as You Think

By: Mitch

Mitch — Fri, 02 Jan 2009 05:25:58 +0000

Though I didn’t buy online this year, I did research online for the things I needed to buy, which isn’t necessarily common for me. But I needed price points, since I had to purchase items I hadn’t bought in some years, and man, what an awakening I got.

By: Rick

Rick — Fri, 02 Jan 2009 05:00:17 +0000

Good article. Another point is that if there are fewer choices then take to the Internet. I shopped online for all but one of my Christmas gifts. For example, I bought my wife a digital camera and that came from newegg.com. The camera stand came from joby.com. Ricks last blog post..Missionary Dan Email from the MTC #8