Who’s Next In the Retail Graveyard?
I think a lot have people have been wondering out loud who the next retailer, financial service, etc., to kick the bucket. But give Yahoo Finance U.S. News and World Report credit for going out on a limb and making the predictions, based on ratings from Moody’s.
Some of the 15 companies Yahoo Finance thinks will be a memory by the end of 2009 are no-brainers, but others you have to think about before having that “yeah, you’re right” moment. Here’s a quick look at some of the companies Yahoo Finance U.S. News and World Report threw under the bus.
Sbarro: At first you think “They’re still around?” and that’s probably because you haven’t felt like paying $5 a slice when you’re at the mall… whenever that last was. Mall traffic is down, flour prices are up, consumers are watching every penny, so Sbarro very well could be a victim of the perfect storm.
Krispy Kreme: Yeah, when they started opening stores in Connecticut, it was a huge novelty. One that wore off quick. The first store it opened back about five years ago is now a Citibank (maybe the site is an old Indian burial ground?). Great donut, lousy coffee. And that makes Krispy Kreme a distant fourth in a three-horse Starbucks-Dunkin Donuts-McDonald’s race.
Rite Aid: Took a gamble when they bought the Brooks/Eckard conglomerate, but Rite Aid can’t keep up with Walgreen’s and CVS (which in some areas seem to have stores on every corner). With that in mind I wouldn’t be surprised to see wither Walgreen’s or CVS fade away soon.
Claire’s Stores: Same fate as Sbarro, people just aren’t going to malls. From what I’ve seen at my local shopping center, Claire’s always seems to be busy, but how much revenue do you have to generate to pay your lease in a shopping mall? And can they even turn an operating profit?
Six Flags: I remember them rolling back admission prices at Great Adventure last summer, and it still seemed like one heck of a steep admission price. The idea was to take advantage of staycationers, but they still lost a bucket of money. Soon it may be “no flags, no fun” at a lot of amusement parks.
