Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

Retail Apocalypse

Grocery Wars

Is Ollie’s Bargain Outlet Making Money?

Hence, Ollie’s is making less money, but why? I can offer a few speculations why Ollie’s is making less money.

Read More
The Death Spiral

Will Dollar Tree (DLTR) die and will Retail Collapse?

I think Dollar Tree could collapse because many of its customers could have no money because of the Coronavirus Depression. For instance, Statista estimates 10.74 million Americans were unemployed in November 2020. That number rose from 5.81 million in November 2019 and fell from 23.08 million in April 2020.   

Read More
Good Stocks

Target and the Art of Retail Survival

Significantly, Target is generating less cash. In particular, Target’s free cash flow fell from $1.755 billion on 3 August 2019 to $357 million on 2 November 2019. However, Target’s free cash flow rose from -$327 million on 4 May 2019.

Read More
Grocery Wars

4 Essential Trends for Retail Brands in 2020

There is no retail apocalypse, and smart retail brands are leveraging their place in an always-challenging environment. Technology, the disruptor of traditional retail, is also proving to be the solution. Here are the retail trends that will continue to matter in 2020.

Read More
The Death SpiralThe Junk Pile

Is Office Depot Making Money?

Like Barnes & Noble (NYSE: BKS), Office Depot is one of those brands that is no longer supposed to exist but somehow keeps hanging on. It seems to generate just enough money to cover expenses and little else.

Read More
The Junk Pile

Sears Implosion will hurt everybody including Pensioners and Stockholders

American Sears pensioners may soon find themselves in the situation. Sears Holdings (NASDAQ: SHLD) had a $1.6 billion shortfall in its pension fund, USA Today reported in March 2017.

What’s truly frightening is that Sears has no way to cover that shortfall. Its revenues fell by 27.22% during 3rd quarter 2017, Stockrow reported. Sears is operating at a loss; it reported an operating loss of $419 million and a net loss of $558 million on Halloween Day, 2017.

Read More
Market Insanity

The Retail Apocalypse is Alive and Well

Giving Walmart workers an extra $8 or $9 a day might have little or no impact on the economy. Walmart clerks can now afford to buy lunch at In-N-Out Burger; rather than at McDonald’s, how does that benefit the wider economy? Much higher wages will be needed for a real economic stimulus.

It remains to be seen if the $1,000 bonus and wage hike will have any effect on Main Street. Giving average families an extra $1,000 to pay off $1,000 of their credit card debt, might not do much for the economy. The average U.S. household now owes $15,654 in credit-card debt, Nerdwallet estimated.

Read More
Opportunities

Is Amazon Really Responsible for the Retail Apocalypse?

Amazon is an extraordinary company that is making itself a big target for politicians and journalists. Yet at the end of the day, the Everything Store is still a very lousy investment.

All of this means that there will be no Amazon dividend in the foreseeable future. The company simply lacks the money to pay a dividend, Amazon needs every cent it can raise to cover operations costs and pay off loans.

Read More