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Staples doing some serious cutting. 225 stores to be closed.
I think Staples still does a lot of sales direct to businesses. Hard to see their retail side continuing much longer, in current form anyway.
Yes, the way to go up against Amazon is to specialize in verticals. Staples has a great customer base in small to medium companies and can leverage it if they focus and execute in that dimension.
But execution is where all these older companies fail - CVS, Walgreen's, Office Depot, Radio Shack, etc are all stuck in the past and too diffused in focus to be able to survive for long. But their CEOs will make millions running them into the ground.
But their CEOs will make millions running them into the ground.
Sad, but probably true. So many public companies seem to employ the falsehood of returning value to shareholders, but really, it's like you say...how much can its executives make in the short-run.
I understand that laws changed recently to require only a >50% rule to control a company versus 90% in past? If so, I think the change is good for shareholders, especially activist shareholders, who can exploit for the better.
I wouldn't want to be in either SPLS or Office Depot/Max, but out of the two, Staples are at least - in my experience - nicer, more updated, more welcoming. That said, I wouldn't be surprised if Staples and/or Office Max continue in a different form. It goes along with the view that retail is overbuilt in this country in general.
10:27 AM Seeking Alpha REIT investors eye weak retailer results, store closing plans
Notably lower today with the major averages in the green are retail REITs Realty Income (O -1.5%) and National Retail Properties (NNN -1.7%), and shopping-center REITs like Kimco (KIM -1.1%), Inland Real Estate (IRC -0.6%), Federal Realty (FRT -1%), and Brixmor (BRX -1.2%). Investors may be mulling over a continuing string of disappointing retail earnings reports and plans for mass store closings from the likes of RadioShack and Staples. Brixmor is also the subject of a downgrade from Buy to Neutral from UBS.
The only retail REIT I would be interested in is Tanger Outlet (SKT) and it's still not on my shopping list. I do think the high-end outlet mall concept seems to be doing exceptionally well. Simon Properties also has their premium outlets, but Tanger is a pure play.
I like Triple Net REITs (ARCP, WPC although O is fine too), Timber REITs, Data Centers (COR, plus EQIX is trying to convert to a REIT) and Healthcare REITs. Warehouse REITs also of interest (CSG). Monmouth is another little REIT that's interesting - 52% of their tenant base is Fedex (shipping facilities, not the stores...) Monmouth (a net-lease REIT) is one of the older REITs and also has a portfolio of other REIT stocks.
The discussion of Staples/Office Max/Depot, Radio Shack just continues to feed into my theory that the sort of "dime-a-dozen" strip malls that are seen across the suburban landscape are going to start to go.
Some retail may end up looking like "Family Guy"'s take on Sears:
Ha! Yesterday we attended the SLO Film Festival opening, which starred Adam West and a recent documentary on his life. It's been a long time since I dressed-up in my Batman costume! I was not alone back then. The show was huge.
Comments
Hey, how about this...StaplesShack.
Can merging these two bad ideas make something good?
Regards,
Ted
I think Staples still does a lot of sales direct to businesses. Hard to see their retail side continuing much longer, in current form anyway.
But execution is where all these older companies fail - CVS, Walgreen's, Office Depot, Radio Shack, etc are all stuck in the past and too diffused in focus to be able to survive for long. But their CEOs will make millions running them into the ground.
I understand that laws changed recently to require only a >50% rule to control a company versus 90% in past? If so, I think the change is good for shareholders, especially activist shareholders, who can exploit for the better.
Hulk Hogan & Sgt. Slaughter: Radio Shack:
Jason: Radio Shack:
REIT investors eye weak retailer results, store closing plans
Notably lower today with the major averages in the green are retail REITs Realty Income (O -1.5%) and National Retail Properties (NNN -1.7%), and shopping-center REITs like Kimco (KIM -1.1%), Inland Real Estate (IRC -0.6%), Federal Realty (FRT -1%), and Brixmor (BRX -1.2%).
Investors may be mulling over a continuing string of disappointing retail earnings reports and plans for mass store closings from the likes of RadioShack and Staples.
Brixmor is also the subject of a downgrade from Buy to Neutral from UBS.
I like Triple Net REITs (ARCP, WPC although O is fine too), Timber REITs, Data Centers (COR, plus EQIX is trying to convert to a REIT) and Healthcare REITs. Warehouse REITs also of interest (CSG). Monmouth is another little REIT that's interesting - 52% of their tenant base is Fedex (shipping facilities, not the stores...) Monmouth (a net-lease REIT) is one of the older REITs and also has a portfolio of other REIT stocks.
The discussion of Staples/Office Max/Depot, Radio Shack just continues to feed into my theory that the sort of "dime-a-dozen" strip malls that are seen across the suburban landscape are going to start to go.
Some retail may end up looking like "Family Guy"'s take on Sears: