Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (16566)	3/10/2003 8:50:23 PM
From: Wyätt Gwyön	Respond to of 79000

there is certainly a "niche" for department stores. that niche currently accounts for a 27% of the retail market. unfortunately, that is down from 30% just a handful of years ago, and will likely continue to decline. in the meantime, however, there are dept. stores that are quite profitable and are not about to go away. but they are more like mines with a depleting asset (their business model and "moat", which is being eroded over time). Barron's offered the interesting example of Target, which owns some old-line dept stores like Mervyn's. it milks these stores for their cash flow, and plows those funds into growing its Target stores. it's not adding square footage at Mervyn's. as for quality product, i guess it depends on the shopper. we bought some oriental rugs recently at Target for 200 apiece. i saw the same rugs at a hoity toity boutique for 1500. shopping at places like Target can make you cynical about up-market stores.