Welcome to consumerism 101. The CompUSA in my home town was close to the crappy mall that is also dying. You know the mall...every city has one...the one that you went to in the early 90s because it was the only good mall around, but 14 shopping centers opened up, all clean and new, and the one that used to be king of the crop is now last decade's harvest. The same thing happened to Media Play/Suncoast/ Sam Goody a while ago. It sucked going into those stores because you knew it was dying. Those old shopping centers are our generation's ghost towns. Big empty boxes littering our cities. I predict as oil gets more expensive, more of these big box stores will shut down. You can't cut costs or reduce overhead when oil is 100 bucks a barrel. You can expect oil costs to double in 5 years.
But what do you expect when the majority of your revenue has no margin whatsoever? Again, the same thing happened to Media Play. There's no margin on cds and dvds...that's why there prices sucked. That's also why Best Buy can afford to sell cds and dvds below cost because they have many other products that have amazing margin, like HDTVs and car stereos.
But what do you expect when the majority of your revenue has no margin whatsoever? Again, the same thing happened to Media Play. There's no margin on cds and dvds...that's why there prices sucked. That's also why Best Buy can afford to sell cds and dvds below cost because they have many other products that have amazing margin, like HDTVs and car stereos.