Wednesday, December 26, 2007

In the reports on Christmas sales, it was mentioned several times that certain big box stores had stronger sales than others of the same kind, and the stores that had stronger sales also had bigger discounts.

Walmart, good sales. Target, bad.

Barnes and Nobles, good sales. Borders, bad.

Best Buy, good sales. Circuit City, bad.

So using those three comparable types of stores, I'll be very, very interested to see what kinds of fourth quarter profits they each had. Keep an eye. And remember, even if The Good Sale stores do turn more profit, they took more risk, and cycled through more product (thus stressing their employees, and systems) with all the hidden costs.

Sometimes, you're better off selling less, for more.

Despite the ninnys on the stock market, I don't believe it's cut and dried. The reaction, before knowing the profits, is just game playing.

I'm going to keep my eye out.

Meanwhile, it looks as though Kid's World at the Forum is going out. Just as umpteen new kid's stores on coming into town. So here you have an established store saying there wasn't enough business to stay, and at least half a dozen new stores saying they can make it work.

So I ask you. Knowing nothing else about the strengths and weaknesses.

Which is the more reliable indicator?

1 comment:

Duncan McGeary said...

O.K. an update on sales.

Walmart good.....?! 2.7
Target bad.... -5.0

Barnes and Nobles good...?! .04.
Borders Bad? 2.4

So the goods aren't all that good and the bads are really bad.

But these are the 'sales' level. The profits are the important figure; B & N has already issued a warning of 6.% drop in earnings.