Market Mad House

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

TJX (NYSE: TJX)

The Death Spiral

Will the TJX Companies Survive Coronavirus?

Coronavirus threatens TJX because the company centers its business model on brick-and-mortar stores in urban areas.

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Thrift

TJX Shrinks and Makes More Money at the Same Time

Hence, American shopping is moving online. That threatens TJX (NYSE: TJX) which operates old-fashioned department stores.

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Grocery Wars

Is Big Lots Losing Money?

Big Lots survival might be impossible when its direct competitor is Amazon which had $27.05 billion in cash and short-term investments on 30 June 2018.

The real threat to Big Lots is not Amazon but changing consumer behavior. People are no longer willing to settle for what is available in the neighborhood.

Today’s shoppers are skeptical of all bargains, deals, and discounts. Instead of being excited when they see something offered for half price at Big Lots they ask, “what’s the problem?”

These new mentalities are fatal for a company that specializes in quick sales of unique bargains. Beyond that, Big Lots deals are not that special anymore. Anybody with internet access, (95% the population) has access to bigger retailers with better deals. To add insult to Big Lots injury many of those retailers offer free delivery.

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The Death Spiral

Can Macy’s escape the Department Store Death Spiral?

Macy’s revenues actually grew for the first time in quite a while in 1st Quarter 2018, Stockrow data indicates.
The revenue growth rate was 1.77% which does little make up for losses, but it is far better than the -6.13% negative growth rate reported in 4th Quarter 2017. That means Macy’s delivered an effective revenue growth rate of 7.9%, which is very good.

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Crazy StocksThe Death Spiral

Can Barnes & Noble be saved??

Nordstrom has demonstrated that retailers like Barnes & Noble might have more value than many people think. Unfortunately, that value is not presently being exploited in any sort of meaningful way. Barnes & Noble is doomed without an acquisition or a radical change in business plan.

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