Author Topic: Anybody else looking at bombed out retail sector?  (Read 16681 times)

clutch

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Re: Anybody else looking at bombed out retail sector?
« Reply #20 on: April 05, 2017, 12:34:16 PM »
There is only one winner in this space. That's AMZN. Retailers need to change their business model. To give people reason why they need to come to the stores. To try out stuff in the store then buy on AMZN is not a reason. The only reason why you would investigate this space is for cigarbut types, if they own their real estates.

If you truly believe this, then what value would be left in the real estate?  Are other retailers going to buy the empty stores?  I would posit that only so many empty Sears & JCP stores can be reworked into non-retail space...

They will all be used for Amazon fulfillment centers  ;D


tradevestor

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Re: Anybody else looking at bombed out retail sector?
« Reply #21 on: April 05, 2017, 01:19:46 PM »
It is interesting to look at the price chart of Best Buy versus Amazon since the end of 2012. I don't know why anyone would still go to a Best Buy, but I guess some do.

Best Buy price matches all local retailers and major online retailers like Amazon, Newegg and TigerDirect.

DooDiligence

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Re: Anybody else looking at bombed out retail sector?
« Reply #22 on: April 05, 2017, 05:42:38 PM »
There is only one winner in this space. That's AMZN. Retailers need to change their business model. To give people reason why they need to come to the stores. To try out stuff in the store then buy on AMZN is not a reason. The only reason why you would investigate this space is for cigarbut types, if they own their real estates.

If you truly believe this, then what value would be left in the real estate?  Are other retailers going to buy the empty stores?  I would posit that only so many empty Sears & JCP stores can be reworked into non-retail space...

They will all be used for Amazon fulfillment centers  ;D

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tooskinneejs

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Re: Anybody else looking at bombed out retail sector?
« Reply #23 on: April 05, 2017, 06:17:58 PM »
There is only one winner in this space. That's AMZN. Retailers need to change their business model. To give people reason why they need to come to the stores. To try out stuff in the store then buy on AMZN is not a reason. The only reason why you would investigate this space is for cigarbut types, if they own their real estates.

If you truly believe this, then what value would be left in the real estate?  Are other retailers going to buy the empty stores?  I would posit that only so many empty Sears & JCP stores can be reworked into non-retail space...

They will all be used for Amazon fulfillment centers  ;D

So people will buy things online and go pick them up at local stores?  Sounds an awful lot like brick and mortar retail to me.

clutch

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Re: Anybody else looking at bombed out retail sector?
« Reply #24 on: April 05, 2017, 08:40:16 PM »
There is only one winner in this space. That's AMZN. Retailers need to change their business model. To give people reason why they need to come to the stores. To try out stuff in the store then buy on AMZN is not a reason. The only reason why you would investigate this space is for cigarbut types, if they own their real estates.

If you truly believe this, then what value would be left in the real estate?  Are other retailers going to buy the empty stores?  I would posit that only so many empty Sears & JCP stores can be reworked into non-retail space...

They will all be used for Amazon fulfillment centers  ;D

So people will buy things online and go pick them up at local stores?  Sounds an awful lot like brick and mortar retail to me.

Uh... Amazon ships people the goods bought from their fulfillment centers. I was only joking though.

rb

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Re: Anybody else looking at bombed out retail sector?
« Reply #25 on: April 05, 2017, 08:55:26 PM »
You know, this idea of Amazon of the be all and end all of retail is ridiculous. I hardly buy anything from Amazon. The reason? The stuff is usually cheaper elsewhere. So why should I go to Amazon?

I usually shop amazon for 2 things: weird things that stores don't carry and holiday gifts cause I don't want to stand in lime. There's also the odd time when I need hard drives for RAID arrays and amazon is on the list because I need drives from different batches and I split it between retailers. But that's about it tech is cheaper from other retailers.

I actually don't see a problem with retail in general. There's a huge problem with department stores. But that's because they made their living selling you mid market apparel and perfume at huge markups and that ship has sailed.

Jurgis

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Re: Anybody else looking at bombed out retail sector?
« Reply #26 on: April 05, 2017, 09:44:49 PM »
tech is cheaper from other retailers.

Maybe that's the case in Canada. In US, Amazon is lowest price for ~50% of tech. Especially if you avoid buying from dodgy (online) stores. Yes, I price compare with BestBuy, Newegg, etc. I haven't seen Newegg to be cheapest. BestBuy sometimes is. (I haven't looked at Fry's online prices recently though, maybe they are cheaper/cheapest)

Quote
I actually don't see a problem with retail in general. There's a huge problem with department stores. But that's because they made their living selling you mid market apparel and perfume at huge markups and that ship has sailed.

Just for fun: where does one supposed to buy clothes according to your worldview?
No, I'm not saying it's Amazon. I don't buy clothes online. I'm still interested in your answer.

Also, since you don't see a problem with retail in general, I'd assume you would be heavily invested in it at current low prices. What are the names that you buy/hold?
« Last Edit: April 05, 2017, 09:48:47 PM by Jurgis »

rb

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Re: Anybody else looking at bombed out retail sector?
« Reply #27 on: April 05, 2017, 10:17:57 PM »
tech is cheaper from other retailers.

Maybe that's the case in Canada. In US, Amazon is lowest price for ~50% of tech. Especially if you avoid buying from dodgy (online) stores. Yes, I price compare with BestBuy, Newegg, etc. I haven't seen Newegg to be cheapest. BestBuy sometimes is. (I haven't looked at Fry's online prices recently though, maybe they are cheaper/cheapest)

Quote
I actually don't see a problem with retail in general. There's a huge problem with department stores. But that's because they made their living selling you mid market apparel and perfume at huge markups and that ship has sailed.

Just for fun: where does one supposed to buy clothes according to your worldview?
No, I'm not saying it's Amazon. I don't buy clothes online. I'm still interested in your answer.

Also, since you don't see a problem with retail in general, I'd assume you would be heavily invested in it at current low prices. What are the names that you buy/hold?
Maybe it's a difference between Canada and the US, but I never find tech appealing on Amazon and I buy a lot of the stuff. Newegg is really good. Maybe the regular list price is not that compelling all of the time but they basically have sales all the time so with a bit of planning and patience you can get really good deals.

With clothes is a different matter. My point is that the department stores are getting squeezed out of business because they're selling mid level stuff for lots of money. I actually think the mid level segment is actually shrinking all together. If you're asking where you can buy the stuff at good prices I'd say TJX stores. This is at least from my experience in Canada where we don't have a million department stores. You'll get that mid level stuff at least half price at TJX as supposed to Sears or HBC.

I actually don't hold any retail because the prices seemed high to me. A couple of years ago I was ready to buy some TJX but I wanted it to drop another 5% before I pulled the trigger - stupid greed! What I am looking at is general retail that has an edge - TJX, Costco, WalMart. I'm also looking at specialty retail - things that are classified as retail but really aren't. My favorite is L Brands.

L-Brands is classified as retail but it really isn't. Saying LB is a retailer is a bit like saying that Sees Candy is a retailer. It's a manufacturer and a brand that sells through its own stores. It provides a reliable and quality product the people are willing to pay a premium for. At angels and aura around it don't hurt either. At 90-100 a share this was an easy pass. In the low 40s it's really interesting. The only concern that I have is their high debt load.

I hope this answers your questions.

Jurgis

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Re: Anybody else looking at bombed out retail sector?
« Reply #28 on: April 05, 2017, 10:32:10 PM »
Yes, thanks.

Not sure if Newegg/Amazon prices is Canada/USA thing or just perception or looking for sales/etc. I maybe bought once from Newegg. Any time I look there, it's more expensive than others. But I don't wait for sales there, so... I know people like their reputation... or at least they did in the past. I've bought stuff on Amazon on Black Friday/Cyber Monday. Other than that I don't try to chase sales (if they happen at all) on Amazon either.

I agree on TJX.
It's a bit difficult for me to compare retail in Canada and US. I would not compare TJX with Sears in US. Years ago (early 2Ks) Sears was viable for clothes/shoes and maybe comparable to TJX. Now it's a mess. Currently TJX comparison in "regular" retail world would be something like Kohl's I think (yeah, I know not direct comparison, but quality/prices perhaps).

I have no comment on L Brands. I assume you like Victoria's Secret part, cause the rest of the brands don't seem very good or known.

Best

DTEJD1997

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Re: Anybody else looking at bombed out retail sector?
« Reply #29 on: April 05, 2017, 11:31:38 PM »
tech is cheaper from other retailers.

Maybe that's the case in Canada. In US, Amazon is lowest price for ~50% of tech. Especially if you avoid buying from dodgy (online) stores. Yes, I price compare with BestBuy, Newegg, etc. I haven't seen Newegg to be cheapest. BestBuy sometimes is. (I haven't looked at Fry's online prices recently though, maybe they are cheaper/cheapest)

Quote
I actually don't see a problem with retail in general. There's a huge problem with department stores. But that's because they made their living selling you mid market apparel and perfume at huge markups and that ship has sailed.

Just for fun: where does one supposed to buy clothes according to your worldview?
No, I'm not saying it's Amazon. I don't buy clothes online. I'm still interested in your answer.

Also, since you don't see a problem with retail in general, I'd assume you would be heavily invested in it at current low prices. What are the names that you buy/hold?

Sorry to horn in, but I buy a LOT of tech stuff...tens of thousands every year...Amazon frequently will have "silly" prices for a lot of the stuff I'm looking for.  I buy at Fry's and Micro-center for a good amount of stuff.

As to clothing...I rarely buy at the mall.  I used to, but have cut back by maybe 90%?  I will buy at Wal-Mart (underwear, jeans, basic stuff), Costco (they sometimes have some fairly good stuff & excellent prices/quality on basics), sometimes I will buy from Paul Frederick for work shirts, slacks, ties, etc.  Then finally I'll buy high end designer stuff off Ebay or from a local boutique that sells used stuff.  Overall, I just don't buy much clothing, not like I used to.

Finally, I don't like buying from Amazon, as they do not treat their warehouse workers well.  There are numerous stories about this...There are also rumors that they do not treat their "white collar" workers well either.  Why patronize a business like that?  Costco somehow manages to sell decent stuff and have an EXCELLENT work environment.  Same thing with Aldi.