Discussion in 'Financial Cents' started by Clyde, Dec 27, 2011.
Sears to close 100 to 120 Kmart, Sears stores - Yahoo! Finance
Walmart will be next. History has shown time and again these stores become victims of their own success and start to put themselves out of business.
Cooks did it, Hills did it (and then Ames after absorbing Hills), Woolworths did it... I could name more but I think ya'll get the point. I know we tend to blame the newcomer store for putting the previous out but I don't believe that's entirely the case. Too much expansion too quickly IMO.
Will be a happy day for me when Walmart goes...
They are continuing to repeat history, even in the midst of declining sales this year they continued building more stores, stores that will compete directly with existing walmart stores. For example in my own city, which has a population of 38,000 and falling quickly, is it really necessary to build a second WalMart Super Center 5.8 miles from the one we already have? Who are they going to compete with? The Kmart on that side of town closed several years ago and the one still here is next door to the existing Walmart and does fine with its group of Kmart diehards.
As a real estate guy, you are missing an important point. Most Real estate categories have two players: home depot/Lowes, walgreens/cvs (rite aid to be absorbed) target/Walmart. The difference is Walmart is a discount retailer that will only have regional competition. What company is being created now that will compete? Amazon.com in my opinion. In the next 20 years you will be able to order food from warehouses delivered directly to your home.
Don't like it, but try buying a book at Barnes and noble in 10 years....fat chance.it will be like buying a cd.
Sears alaways had a reputation of quality above everyone else, when they merged stores with Kmart the reputation went away. Kenmore doesnt mean anything to anyone anymore.
Wallmarts customer service has gotton so bad that it cant help but affect them. Their electronic departments are now second rate. Price is what seems to keep the stores busy.
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