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Old 07-04-2008, 12:40 AM
 
Location: San Antonio
944 posts, read 2,761,433 times
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Hello all,

Given the worsening economy, does anyone know which major retailers are most at risk fo going out of business? If not, does anyone know where I can look up the financial health of given retailers?

I'm particularly interested in knowing what will become of Sears. Hasn't it already been hanging on by a thread? Not to be doom and gloom, but should I not buy tires there because the service warranty will be void in a year because they are out of business? (I know that question may sound extreme, but I thought I'd ask in case someone knows.)

Thanks!
K
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Old 07-04-2008, 07:27 AM
 
Location: Great State of Texas
86,093 posts, read 69,893,919 times
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Sears is traded on the stock exchange so you have access to their financials.
Go read their annual report/quarterly report. The numbers, income vs expense, debt ratio should give you a snapshot of how the company is doing.
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Old 07-04-2008, 12:03 PM
 
Location: Heartland Florida
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I am looking forward to empty malls and abandoned shopping centers!
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Old 07-04-2008, 12:16 PM
 
Location: San Antonio
944 posts, read 2,761,433 times
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Wow, good suggestion. So I look at a Sears earnings report and see that they are down 86% in the last year (if I'm reading things correctly)! Well, I can see myself with no tire warranty in a year or two if I buy from them, huh?
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Old 07-04-2008, 01:35 PM
 
655 posts, read 697,876 times
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What retailers are at risk? All of them. Nothing is off limits as far as a potential failure. Yes, that would even include the likes of Home Depot, Lowes, Walmart, Target. Probably these would be the last to go, but with what is coming, it is possible. All the excessive retailers: Kirspy Kreme, Starbucks, Bed Bath, (the fluffy non-necessity stores) are all going to go under.
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Old 07-04-2008, 02:11 PM
 
Location: Texas
8,062 posts, read 15,868,944 times
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Quote:
Originally Posted by hello13685 View Post
Wow, good suggestion. So I look at a Sears earnings report and see that they are down 86% in the last year (if I'm reading things correctly)! Well, I can see myself with no tire warranty in a year or two if I buy from them, huh?
Well, there's another way of looking at it. As people look for better bargains out of necessity and are less driven by "prestige," they just might return to places like Sears and Kmart. These stores are struggling, yes, but they're also trying to improve brands and service.

Honestly, I shop a LOT at Kmart. I can get nice clothes, shoes, towels/bedding, etc. there for VERY reasonable prices and the quality is a whole lot better than Walmart and, ESPECIALLY, Target. (I haven't bought one article of clothing at Target that hasn't become unwearable for some reason after the second wash.)

Most folks are becoming more discerning in what they buy so these stores may make a comeback if they can regain market share in a slow economy. I know I'm pulling for them!
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Old 07-04-2008, 07:20 PM
 
48,519 posts, read 81,030,761 times
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But i the end you have to sale waht oyu produce. The old mom and pop stores are never comig back because they paid a peasant pay scale; droveup prices and many got rich off the common worker.
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Old 07-04-2008, 10:47 PM
 
3,553 posts, read 6,786,557 times
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When I look at things that can easily be done without, I don't see SUVs going away (regardless of the price of gas, the guy that keeps a Ford Expedition at each of his 5 houses can afford the gas for them), or Starbucks (I've never spent more than about 1.80 for one of their coffees) but things that operate on a "failed business plan".

That would mean any of the "legacy" airlines. Those that fly a "hub and spoke" route system. They start out at a 7% disadvantage to the "point to point" carriers and now they're crying for the government to "re-regulate" them.

Blockbuster Video, or any video rental "brick and mortar" that's still in business today. To me that's like having a "telephone store", not a place where you buy telephones, but a place where you would GO TO IN ORDER TO MAKE A PHONE CALL. Netflix will let me view movies (or so they say) online. For however much I pay (and it's less than my cable, phone or internet service) I can have 4 movies at a time. Trust me, unless you have NO LIFE, you can't watch that many DVDs.

GM. They're trading in the sub-$10 range. Last time I looked GMAC finance was worth close to that. Oh, wait a minute, a lot of GMAC's value is in CAR LOANS (bad idea) and mortgages (bad idea). Still it's "break up" value is probably $17 or so per share.

golfgod
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Old 07-05-2008, 09:30 PM
 
Location: Charlotte, NC (in my mind)
7,946 posts, read 14,602,573 times
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Quote:
Originally Posted by golfgod View Post
Blockbuster Video, or any video rental "brick and mortar" that's still in business today. To me that's like having a "telephone store", not a place where you buy telephones, but a place where you would GO TO IN ORDER TO MAKE A PHONE CALL. Netflix will let me view movies (or so they say) online. For however much I pay (and it's less than my cable, phone or internet service) I can have 4 movies at a time. Trust me, unless you have NO LIFE, you can't watch that many DVDs.
Legal online downloads are poor quality plus most people aren't going to want to watch their movies on their laptops instead of their 60" HDTV. Brick and mortar video stores will stay around until some sort of console comes out and penetrates the market that allows streaming of 1080i quality video directly into your TV, not your computer. Plus, most people don't want to wait days to receive the movies and then send them back.
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Old 07-05-2008, 09:50 PM
 
Location: NJ
2,212 posts, read 6,174,764 times
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Quote:
Originally Posted by bchris02 View Post
Brick and mortar video stores will stay around until some sort of console comes out and penetrates the market that allows streaming of 1080i quality video directly into your TV, not your computer.
You mean like the "on demand" cable channels and movie rentals which already exist?
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