First retailing is a tough business. Find out what happens to the top 10 retailers 10 years ago. The sole survivor is Macy's which was almost bankrupted and rescued by the late Run Run Shaw (Hong Kong). The others were bankrupted or were acquired.
In every sub category, we need only one major player. BestBuy is one for electronics and Circuit City was not.
is one and Office Depot is not. ComputerUSA is not. However, it may
change as Office Depot is merging with another company to fend off
Staples. Staples made several fatal errors including the investment in
Radio Shack is one but Game Stop is catching up.
They're late to move into games which should give them higher profit
margins. They have the same model as CVS. However, it fails as the
products are quite different. Most CVS's products such as shaving creams
need to be replenished every month.
JC Penny may be saved by
firing the CEO who was highly presentable but preaching the older
concepts that had been proven not workable by Sears.
not making good profit today. I only buy them in their bottoms with
turnaround potential. Otherwise I do not touch them even with a nine-yard