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alstry (35.02)

Retailer R.I.P. Train Chuggs Along

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October 20, 2008 – Comments (5)

SAN FRANCISCO (MarketWatch) -- Shoe Pavilion Inc. said late Monday it will close all of its 64 stores after 29 years in business. Shoe Pavilion was once the largest independent discount footwear retailer on the West Coast.

The above is added to Linen 'n Things, Mervyns, Sharper Image, 600 Starbucks, and likely many Circuit Cities.....choo choo!!!!!!

As these retailers die...it does not appear that there is much to take their place.......that is what makes this time different.

5 Comments – Post Your Own

#1) On October 20, 2008 at 8:41 PM, debtRichQuick (< 20) wrote:

This a perfect example of poor management. Just recently (1yr) a Shoe Pavilion relocated from a not so central retail location to an very central retail location. I couldn't help but wonder how on earth the move was beneficial for them.  It replaced a clothing store of significant size, so I decided to pop in and see just what they had done.  They did nothing to modify the space. So they saved on TI's. The major problem I saw was their products covered only a fraction of the store's floor space (60%).

 Let's be realisitic here. How on earth can a discount shoe store making $10-$30 per pair survive by covering only 60% of the available floor space in a prime downtown retail location?? Volume? That is what I though...it must be the volume. But I didn't notice people lined up at the register cashing out...I never have...I've bought my gym shoes at Shoe Pavilion for a number of years and always recall it being slow.  

In this case, management missed the mark by paying top dollar for a prime retail location for a discount shoe store. You can stand on the corner and see Saks Fifth! On the corners in this area are stores like Saks Fifth, Gucci, Nordstroms, Jcrew, Bose, Tiffany Co, and a five star hotel....I mean! What on earth was management thinking??? These fat cats are making a few hundred K a year to make these decisions. Incredible!

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#2) On October 20, 2008 at 8:50 PM, debtRichQuick (< 20) wrote:

CC has been on it's death bed since 2000.  They made no effort to maintain their stores. Stained carpet peeling up, with shelving systems from the 1980s. Lights out in parts of the store. It appeared as though mangement was letting it die. Very sad. They had a good model.

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#3) On October 20, 2008 at 8:59 PM, alstry (35.02) wrote:

debtRich,

How many public companies do you think were run like CC, Shoe Pavillion and others simply surviving on easy credit???  SPF and most other public HBs anyone?????

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#4) On October 20, 2008 at 10:22 PM, debtRichQuick (< 20) wrote:

No doubt there were lots of them. Lots of private companies too. The company that lent that money to SPF must be kicking themselves. What a joke.

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#5) On October 20, 2008 at 11:34 PM, alstry (35.02) wrote:

Don't be so quick...my bet is that the made a boatload on the Credit Default Swaps.

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