Tuesday, July 18, 2017

Retail is a tough business

When I did (about 5 years ago), Loews and HD were not in my screen. I forgot the top 10 retailers and many were local such as Lechemere, Somerville Lumber (screwed by HD), Bradley, Zayers, Circuit City, Filene's... - need to go back to the list. However, only one or two survive today.

Macy was almost bankrupted and was rescued by a Hong Kong film maker Run-Run Shaw whose relative was married to the family member of Macy's owner.

I made some money in retailers. However, many turned to be losers when I held them too long.


I sold Sears after making a good profit. I bought it when the outlook was very good. I was irritated to sell it too early when I visited Sears at Toronto and found it was well run and presented. Not a while ago I was frustrated when Lambert (the hedge fund manager with heavy investment in Sears) made millions. Now, I am glad.

When it merged with K-Mart, I know the fat lady had sung. When two losers merge, most likely the managements blame the other side and spell the end of the company. We have too many examples.

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