Howard Davidowitz
Howard Davidowitz
channel clothes department retail stores supplies terms weakest
Tommy Hilfiger supplies its clothes to department stores and we all know that that's the weakest channel in retail in terms of sales,
allowances demand department high inventory likelihood lower merger return scenario segment sell store stores worse worst
There is a high likelihood of lower prices, ... The department store segment is a supplier's worst nightmare. Department stores demand more allowances from vendors, they want to be able to return inventory if it doesn't sell well. A Federated-May merger could be an even worse scenario for the suppliers.
consumers conversation costco decision department huge investment morning retailers shopping store support terry
I had a conversation with Terry this morning and I told him that I don't support a decision to make a huge investment in another department store when many more consumers are shopping at off-mall retailers such as Wal-Mart, Target, Costco and Kohl's,
bring build couple department dollars few million stores successful
If you are able to build a few stores that are successful and bring in a couple of million dollars each, the department stores will come to you and you can make a deal.
execution problem
The problem at Linens 'n Things is execution.
available billion companies equity private
The private equity companies have never had this much money. They have $125 billion available for acquisitions.
fickle game impress money numbers potential public rule stays
The rule of the game is go public for the money when you have the numbers to impress potential investors. Retail, and especially apparel, is so fickle that nothing stays the same forever.
downside stock
The stock has a lot of downside and very little upside.
associated costs gigantic given process share warehouse
There would have been gigantic costs associated with the unbundling process given that the different units share warehouse and distribution centers,
businesses buyers companies effect factories fewer gotten led less meetings products rolling sars stopped visits
SARS has not stopped factories from rolling out products in China, ... The only effect it's had on U.S. businesses is that it has led to fewer visits from buyers to the region. So there have been less face-to-face meetings between buyers and suppliers, but companies have gotten around that by teleconferencing.
halloween holidays less
Other holidays have become less important. Halloween is the exception. It has become more important.
hang increasing players profile risk taking weakest
Bon-Ton is one of the weakest players in a very weak sector. It is increasing its risk profile tremendously by taking on debt. How does this all hang together?
buying losing market share
Bon-Ton has been losing market share and now it's buying more losers, who have also been losing market share,
bottom clothing consumers items line next paying
At the end of the day, if the quotas stick, the bottom line is that consumers will be paying more for some clothing items by next year.