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RyanairGuru
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RE: Major Retailers That Are Close To Being Defunct

Wed Aug 06, 2014 12:46 am

Quoting bunumuring (Reply 21):
They shut some incredibly high percentage of outlets across Australia a couple of years ago but seem to be growing again

They were down to 18 stores nationwide IIRC, and all of those in areas with high concentrations of tourists.

The complete and utter rejection of Starbucks by the local Australian market was actually quite amusing to watch. Australia is still the only market that they have entered and completely failed. Obviously, as mentioned upthread, they got burned during the GFC, but have grown solidly in those markets since then. Here, they were sent packing with their tail between their legs because Australians resoundingly said that they didn't want to buy their products.

That said, I am glad to see them expanding again, albeit modestly, as although I don't perceive any room for them in the coffee market in this country, Starbucks is about so much more than just your standard espresso-based coffee. As somebody who enjoys their non-coffee products, I would welcome one located near me. I will continue to go to the independents for my coffee, but would definitely consider Starbucks for other types of drinks.

Quoting melpax (Reply 46):
Starbucks licenced their Australian operation to a Melbourne-based company a couple of months back. This company also has the licence to operate 7-11 here, and are quite successful.

Interesting, I didn't realise this.

Quoting melpax (Reply 46):
I wonder what they'll do differently from before

Probably not focus on selling coffee. Coffee will obviously continue to be the back-bone of their business, but they need to educate consumers about the products that they offer that the hipster-independents do not.

Whoever owns the 7-11 franchise in Australia is clearly a very smart cookie, and the growth of 7-11 over the past five years has been quite phenomenal. I'm sure they know what they're doing in taking on the Starbucks franchise.

Quoting desertjets (Reply 25):
Retailers like H&M, and Old Navy/GAP will do well because they have much broader appeal.

I used to say that if your name wasn't Zara or H&M you had no future in fashion retail, but the Gap Group have really turned themselves around and, most importantly, streamlined their product development and distribution channels. I'm now willing to recognise them as a third powerhouse in that sector.

Quoting melpax (Reply 46):
I remember walking through the suit section of the David Jones store in Melbourne CBD a few years back during a sale & having sales staff practically beg me to buy something as sales were bad. Both were badly affected by the AUD reaching & exceeding parity with the US dollar which increased the appeal of internet shopping & also Aussies were buying up a storm in LA & NY stores on holiday

I remember that well, as I worked for DJs at the time. Trading was already struggling post-GFC, but the AUD going above parity was a real watershed moment.

Quoting melpax (Reply 46):
the same may happen with Myer.

Myer have always positioned themselves below DJs, or more accurately DJs have always positioned themselves above Myer, although the differences are largely illusory IMHO. DJs like to think of themselves as the Bloomingdales to Myer's Macy's. It will be fascinating to see what moves they make going forward. Rumours about DJs closing their Market Street store in Sydney and consolidating everything into Elizabeth Street is an indication of where things are heading.

The department store model is dying all around the world, but DJs and Myer are especially exposed due to their limited-to-nonexistant online sale presence.
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bchandl
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RE: Major Retailers That Are Close To Being Defunct

Wed Aug 06, 2014 2:40 am

Quoting KiwiRob (Reply 48):
And I live in Norway, but wifey won't drive Japanese or Korean.

That's a shame. They make some great economically priced cars.

bchandl
 
AKLDELNonstop
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RE: Major Retailers That Are Close To Being Defunct

Wed Aug 06, 2014 3:58 am

Quoting KiwiRob (Reply 22):
It was a sad day when that store closed. I used to go and read in the store a lot when I was a student.

Is that the one with the Gloria Jeans in it? I too spent a lot of time there back in my uni days.

Quoting RyanairGuru (Reply 50):

The complete and utter rejection of Starbucks by the local Australian market was actually quite amusing to watch. Australia is still the only market that they have entered and completely failed. Obviously, as mentioned upthread, they got burned during the GFC, but have grown solidly in those markets since then. Here, they were sent packing with their tail between their legs because Australians resoundingly said that they didn't want to buy their products.

It makes sense. There is far better coffee in Australia and New Zealand than for people to want Starbucks. Although, that said, they haven't done too badly in Auckland. I think they have actually grown here since pre-GFC.
 
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RyanairGuru
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RE: Major Retailers That Are Close To Being Defunct

Wed Aug 06, 2014 4:10 am

Quoting AKLDELNonstop (Reply 52):
they haven't done too badly in Auckland

Relative to Australia they've done relatively well in New Zealand. It's far from a star market for them, but not as bad as Australia.
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2707200X
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RE: Major Retailers That Are Close To Being Defunct

Wed Aug 06, 2014 9:41 am

JC Penney still has a way to go when it comes to earnings and stock prices but I have noticed improvements with the stores that I have visited in several malls. For the first time in I think ever I have seen an increase of people at the stores and I think because they have done some renovations to the displays in the sales floor. The one big thing that has changed is the up-stairs; before the renovation the up stairs was plane and dank, when you went to the second level, the first thing that you noticed was the smell, the musty smell of rain mold probably from the ceiling. The up stairs was bland in decoration with water stained ceiling tiles on the ceiling and walls, you had the old hair salon that you saw when you came up of the escalator and floors had that old yellow linoleum and every one that you saw at the store has been going there since the fifties and the inventory seemed way out of style, a time machine of sorts. Now they have improved it, they added color, took out the linoleum, the salon is gone, and the modern inventory took its place, yeah the elderly long time clientele might have found themselves out of place but more people are at the store.

The continuing problems that I do see it at Kmart and Sears. Go to the local Kmart where I live, It has always been almost empty, almost every isle you are in you are the only one For being a relatively new place, fifteen years old or so, the sides of the building smells like an attic, the electronics section looks like the Fedco (SoCal) electronics section from the eighties, and the washers and driers look out of place in the middle of the store surrounded entirely by the picture frames and the large selection of mens and womens socks and underwear. The biggest problem I think overall is the slow checkout line as you are told all the deals and then asked to do a questionnaire as your stuff is being scanned out the the often malfunctioning cash register.

Sears, you come in and once you pass the first few feet of the store and the Kardashian Kollection in the front of the store it looks so dated, right from the seventies with yellowish warm colors for the walls, wood veneered or pee colored floors, the inventory is a total mess all over the place and you can hear Justin Bieber songs "Baby, baby, baby" in the speakers. I do like the tools that they have and the entertainment and kitchenware sections are good but the rest is a mess. Once you pass the parts visible from inside the mall it just goes dank. I have also noticed that the side stores inside like the salon, the H & R Blocks, a lot of the hearing and vision venues, family photo venues, suit rental and smell item repairs are going away in many of the stores. Sears has the biggest incentive to improve and they have like Kmart have not done anything yet to bring up their game.
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KaiGywer
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RE: Major Retailers That Are Close To Being Defunct

Wed Aug 06, 2014 10:35 am

Quoting Revelation (Reply 36):
Interesting - is it hard to get set up to sell your books on Amazon?

It's easy to sell, just be careful of selling heavy books. Amazon will give you a flat $3.99 shipping fee per book regardless of weight, and they also take a hefty fee for selling your stuff.

For example, I just sold a college textbook.

I priced it at $20.99 and I was given a $3.99 shipping credit once it sold, for a total payment of $24.98 by the buyer.

Well, the shipping ended up being $4.43. Amazon's fees were $3.15 commission, $0.99 fixed closing fee, $1.35 variable closing fee. Of the $24.98 paid by the buyer, I am receiving $19.49, then subtract the $4.43 in shipping and I am left with $15.06 actually paid out to me.

Quoting bunumuring (Reply 39):
Btw, in Australia we have this Starbucks-like coffee chain called 'Gloria Jeans'...

We have those in North Dakota also. The only place in town that you can order almond milk (my wife is soy and lactose intolerant)
“Once you have tasted flight, you will forever walk the earth with your eyes turned skyward, for there you have been, an
 
melpax
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RE: Major Retailers That Are Close To Being Defunct

Wed Aug 06, 2014 1:42 pm

Quoting RyanairGuru (Reply 50):
Rumours about DJs closing their Market Street store in Sydney and consolidating everything into Elizabeth Street is an indication of where things are heading.

Interesting. Myer did something similar when they rebuilt their flagship Melbourne store, they now only retain 2 floors in their adjoining Lonsdale St store that was also totally rebuilt (turned into an upscale shopping mall). DJ's have 2 stores opposite each other in the Bourke St Mall, the Men's & Women's stores. Would be hard to see them consolidate here in MEL as they've just finished expensive upgrades of both stores, and relinquishing one outlet would only mean handing over floorspace to a potential competitor.

The Bourke St Mall is in the top 10 of the most expensive retail rents worldwide (apparently cheaper to rent space in Paris than Melbourne!). Luxury retail is booming here, and a lot of global retailers are opening up outlets here chasing growth. H&M opened up in The Mall a couple of months back to massive crowds, the same happened when Zara opened up a couple of years back.

http://www.propertyobserver.com.au/f...-property-push-into-australia.html
 
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N776AU
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RE: Major Retailers That Are Close To Being Defunct

Thu Aug 07, 2014 6:40 pm

Quoting bchandl (Reply 3):
Quoting LPDAL (Thread starter):
-Eckerd's Pharmacy

? Never heard of it.
Quoting okie (Reply 8):
Eckerd's was a division of JC Penny. The pharmacy/drug stores were purchased by CVS. Some locations may still take JC Penny credit cards.

I didn't know Eckerd was a JC Penny company. Down south here they all got rebranded as Rite Aid.

Most that I can think of have already been said, but I haven't seen the name Isuzu pop up. Do they still sell cars in North America?
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desertjets
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RE: Major Retailers That Are Close To Being Defunct

Thu Aug 07, 2014 6:51 pm

Quoting N776AU (Reply 57):

Most that I can think of have already been said, but I haven't seen the name Isuzu pop up. Do they still sell cars in North America?

The 2008 model year was their last in the US. They still sell their medium duty commercial trucks under their own name and Chevy and GMC brands.
Stop drop and roll will not save you in hell. --- seen on a church marque in rural Virginia
 
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RyanairGuru
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RE: Major Retailers That Are Close To Being Defunct

Thu Aug 07, 2014 11:46 pm

Quoting melpax (Reply 56):
DJ's have 2 stores opposite each other in the Bourke St Mall, the Men's & Women's stores. Would be hard to see them consolidate here in MEL

That's what they have in Sydney, with the Elizabeth Street store (women) and Market Street store (men, homewares) opposite each other. They believe that by using the space in Elizabeth Street more effectively and converting some non-retail space to selling floor, they can consolidate in one store. This would give them 9 trading floors, down from 16 currently.

This is in line with the national plan. As stores come to the end of their leases, DJs are going to shrink their retail spaces by an average of 25%. Obviously Sydney is a bigger cut than that (and it isn't confirmed at this stage) but it does indicate what the future has in store.

Quoting melpax (Reply 56):
they've just finished expensive upgrades of both stores

Which means that the leases were recently renewed. They're probably safe for at least 8-10 years then ... after that ... I'd put money on only having one store.

Quoting melpax (Reply 56):
relinquishing one outlet would only mean handing over floorspace to a potential competitor.

Ah, but that's the thing. With the way retail is going that floor space won't go to a direct competitor. It might get sub-divided and leased to specialty stores, and if that is a foreign fashion brand that could put pressure on DJs margins, but if anything the space is more likely to go to a supermarket and oversized food hall. Don't laugh. Food retail is the most profitable segment for Westfield, and they are therefore remodelling their malls to give greater floor space to those sectors.
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bunumuring
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RE: Major Retailers That Are Close To Being Defunct

Fri Aug 08, 2014 2:25 pm

Quoting RyanairGuru (Reply 59):
This is in line with the national plan. As stores come to the end of their leases, DJs are going to shrink their retail spaces by an average of 25%. Obviously Sydney is a bigger cut than that (and it isn't confirmed at this stage) but it does indicate what the future has in store.

Actually, the latest thinking is MORE outlets of a smaller size to increase brand penetration - and that is from a high source in the company who happens to be a relative...

And both DJs and Myer are thinking along these lines.

The newest Myer, in Shellharbour NSW, is a good example of the way the chain is heading with regards new stores. The redeveloped and downsized Westfield Liverpool Myer is the latest thinking in this trend, and is I have heard making a healthy financial return as a result.

For future DJ trends, look to the imminent decision on the MacArthur Square DJs: to close? To downsize? To rebrand? This DJs store was shut a decade or so ago, leased out to Harris Scarfe for years, then taken back and reopened as as a DJs. Now that MacArthur Square is about to undergo massive renovations and extensions, DJs have to make a decision as to this store's future.

Yes, DJs look likely to close one of their iconic Sydney CBD stores, but with approval to build a 22 story apartment tower on top, the fat lady hasn't sung yet... As to losing the Food Hall-please no! I'm willing to chain myself in protest to one of the pillars/pylons Inside In protest!

I also have a close relative who is heavily involved (read manages) shopping centre design and redevelopment across Australia and he tells me that already these changes in direction by DJs and Myer are being taken into consideration.

Overall, Myer and David Jones will survive, in my opinion and hopefully prosper. I regularly shop in both.

Cheers,
Bunumuring.
I just wanna live while I'm alive!
 
melpax
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RE: Major Retailers That Are Close To Being Defunct

Sat Aug 09, 2014 11:20 am

Quoting bunumuring (Reply 60):
Yes, DJs look likely to close one of their iconic Sydney CBD stores, but with approval to build a 22 story apartment tower on top, the fat lady hasn't sung yet... As to losing the Food Hall-please no! I'm willing to chain myself in protest to one of the pillars/pylons Inside In protest!

Will be interesting to see if they decide to consildate the 2 Bourke St stores, and which one. They are both heritage listed, which may complicate things as far as redevelopment is concerned. The women's store is the original DJ's store, it was built in stages from the 1910's to 30's for Buckley's (who DJ's took over in the 80's). The Men's store (the food hall is in the basement of this store) was also constructed in the 30's, and was the flagship Coles variety store & head office until Coles closed the store in the late 80's. DJ's took it over in the mid 90's, and revamped the interior to their needs.
 
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RyanairGuru
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RE: Major Retailers That Are Close To Being Defunct

Sat Aug 09, 2014 9:11 pm

Quoting bunumuring (Reply 60):
the latest thinking is MORE outlets of a smaller size

Isn't that exactly in line with what I said? They are shrinking current store size. I never said that they would fail, just going through a state of renewal.

Quoting bunumuring (Reply 60):
he tells me that already these changes in direction by DJs and Myer are being taken into consideration

Absolutely, this is the best news that Westfield and other mall operators would have heard in a long time and they will be rubbing their hands with glee.

Quoting melpax (Reply 61):
The Men's store (the food hall is in the basement of this store) was also constructed in the 30's, and was the flagship Coles variety store & head office until Coles closed the store in the late 80's.

Wow, never knew that! I'll have to visit it next time I'm in Melbourne to appreciate part of Coles' history.
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BNE
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RE: Major Retailers That Are Close To Being Defunct

Sun Aug 10, 2014 2:22 pm

I always wondered about the size of some of those US department stores, was rent so cheap in the past that the idea was to build something twice a big as required and let the area grow into it. Seems like the GFC hit and anyone who had over committed a few years earlier probably went out of business.

The Myers in my area Fremantle closed down a few months before I moved here. Myers don't need to be every where as I generally use it as a destination shop when I need to buy a few clothes, its an upmarket shop where you don't need to visit weekly or even monthly.
Target is an interesting shop in Australia almost like the scaled down version of Kmart our low end retail shops that sell, clothing, electronics, toys, kitchen ware. Target in Australia might get squeezed out but if Coles Group can find the right target market for Target then I am sure it can continue for a lot longer. wiki is good for information on the group. I myself not a fan of Kmart in Australia the shops are a bit too big and a messy lay out and I find Target just a smaller format store I find easy to navigate to buy things that I don't need every week but when I need something for the house or a piece of clothing in a hurry then Target suits that market well.
Shops like Radio Shack and Dick Smith(another electronics shop) I don't see either lasting the next decade, usually the customers know exactly what they want and already know the price they want to pay and Dick Smith I find the floor space to big and must get killed in rent.
Starbucks in Australia really expanded to fast they started popping up everywhere in Australia and I think that got up everyones noses so their sales didn't increase enough for the new shops.
There is a market for Starbucks but again most Australians don't visit the coffee shop daily like you would in the US, you might use it as a lunch destination or a coffee stop when you are out with friends.
For a while I thought airliners.net might become defunct but it seems to keep going at a regular pace, seems like some shareholders want to see instant profits or growing sales targets every quarter and sometimes that just isn't going to happen.
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ltbewr
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RE: Major Retailers That Are Close To Being Defunct

Sun Aug 10, 2014 2:49 pm

Quoting BNE (Reply 63):
I always wondered about the size of some of those US department stores, was rent so cheap in the past that the idea was to build something twice a big as required and let the area grow into it. Seems like the GFC hit and anyone who had over committed a few years earlier probably went out of business.

The many malls created in the USA from the 1960's to the 1990's, often would give favorable long-term leases to big chain department store and other chains, and as many big stores moved out of the downtowns of cities like Newark, NJ. The consolidation of the department stores from about 100 regional store groups down to about 5-6 (especially Macy's) has led to a glut of mall spaces.
We are seeing many lower tier malls being broken up, shut down, repurposed to a smaller open mall of large chain stores or looking more like old 'downtowns' or replacing large stores with Community Colleges, business offices and rental/condo projects. Many now go to stores like Kohl's, TJ Maxx, that are mainly in more convenient strip malls than in regional malls due to changing demographics, inconvenience of getting to/from malls unless you have a car. All will likely mean some chains will die - as has always happened, and new marketers take over, the cycle continues.
 
Okie
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RE: Major Retailers That Are Close To Being Defunct

Mon Aug 11, 2014 12:18 am

Quoting ltbewr (Reply 64):
The many malls created in the USA from the 1960's to the 1990's, often would give favorable long-term leases to big chain department store and other chains, and as many big stores moved out of the downtowns of cities like Newark, NJ. The consolidation of the department stores from about 100 regional store groups down to about 5-6 (especially Macy's) has led to a glut of mall spaces

Sears, Macy's, Penny's, Montgomery Ward, etc were anchor tenants given long term cheap leases to draw the customers, the smaller shops were left with high dollar leases driving their overhead through the roof making them uncompetitive.
The other problem besides change of demographics was change of ownership of the property. The new owners were stuck with the long term contracts so they went to the smaller shops to recover their investment.
One of my friends wife had a shop that employed about 6 to 8 people, the mall was purchased by another company and when it came time for lease renewal the new company wanted quadruple rent. There just was not enough profit to pay that and she closed the shop. The new owners in about a period of 18 months ended up with about a 90% loss of shops/stores as their lease's ended and closed the mall.



Okie
 
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RE: Major Retailers That Are Close To Being Defunct

Mon Aug 11, 2014 1:01 am

Target is going down fast in Canada
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N1120A
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RE: Major Retailers That Are Close To Being Defunct

Mon Aug 11, 2014 1:26 am

Quoting Ken777 (Reply 2):
I'd put Radio Shack on the Endangered List

I would have done that years ago, but they are truly like a cockroach - you can't kill them. They have evolved steadily. I'd imagine much of their business is cell phones.

Quoting Ken777 (Reply 2):

I would add Sears/K-Mart to the list. Sears has built so much of their business on Hardware, lawn care and Auto that they have not been able to establish a reputation in Fashion - or at least one they want.

More like they didn't maintain enough focus on their successful areas.

Quoting bchandl (Reply 3):
Actually, I am pretty sure there are still some open. But yes, this one really got destroyed by Netflix (Mail, then Streaming obviously blew it away)

No question. That is a business that just failed to evolve.

Quoting bchandl (Reply 3):

* Research in Motion (Blackberry) JUST DIE ALREADY.

They keep getting investments.

Quoting einsteinboricua (Reply 9):

I read an article on how Aeropostale, American Eagle Outfitters, and Abercrombie and Fitch weren't doing so hot due to competition from other stores (H&M, for example), and the article predicted that one of the three would most likely be bought out this year or the next.

A&F in particular have done a poor job in competing with the substantially lower priced, and more quickly adapting H&M.

Quoting MAH4546 (Reply 17):
So Volvo is going to cease to exist in it's second largest market (after China), but stay everywhere else? Please. Volvo is fine in this country and not going anywhere. It's death is grossly exaggerated, and it's now controlled by Chinese money. It has suffered from a dearth of product the past few years that is finally turning around, and even through all that Americans still buy more Volvos than Swedes.

Yeah, I don't get that. Its not like Volvo is completely incompetently managed like GM did with Saab.

Quoting KiwiRob (Reply 19):
The future success of Volvo in the US hinges on the success or failure of the next XC90, here's hoping the US market will be able to adjust to a large premium SUV with a 4 cylinder engine.
Quoting bunumuring (Reply 21):
My local DVD store is a Blockbuster.

LOL. DVD store. Its a video store.   

Quoting RyanairGuru (Reply 50):
Australia is still the only market that they have entered and completely failed.

They did very poorly in Israel as well.

Quoting YYZatcboy (Reply 66):
Target is going down fast in Canada

Well, its not like Target is an established brand in Canada. They have struggled to shake the reputation Zellers had as a deep discounter, and haven't seemed to respond well to the price sensitive vagueries of the Canadian market.
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