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alstry (35.21)

SLOWDOWN spiraling OUT OF CONTROL

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July 01, 2008 – Comments (6)

GM's sales down 18%. Ford's down 26%. Chrysler down 36%. Heck even Toyota down over 20%.

NOW THIS:

Starbucks has announced the next step in its multi-faceted plan to transform the company, with a decision to close approximately 600 underperforming company-operated stores in the U.S. market. This decision is a result of a rigorous evaluation of the U.S. company-operated store portfolio and includes the 100 stores targeted for closure in the company's previously announced plans. In addition, Starbucks now expects to open fewer than 200 new U.S. company-operated stores in fiscal 2009.

100 STORE CLOSINGS TO 600 STORE CLOSINGS IN JUST A FEW MONTHS.....HOW BAD DO YOU THINK JUNE SALES ARE?????????????

For a mechant like Starbucks to increase the storeclosings by 600% in a few months....clearly the train is off the track......we should get some June retail figures in a few weeks.

Not a word from an elected official yet.

 

PS:  I am aware of the $4 Latte argument.  FWIW....I agree with it......but we are not judging behavior.....simply the shuttering of American businesses due to tremendous stress on the American consumer.

6 Comments – Post Your Own

#1) On July 01, 2008 at 5:08 PM, hansthered0 (< 20) wrote:

Wow nice. Oh check out my recent post alstry.

You're gonna love this.

http://msncaps.fool.com/Blogs/ViewPost.aspx?bpid=67206&t=02001341965050383132

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#2) On July 01, 2008 at 5:22 PM, alstry (35.21) wrote:

The country has no clue what is upon us.  The country is shutting down and nobody is saying a word.

For Starbucks to increase store closings 600% in a few months either means they have no control over the business or that things really slowed down in June.  The latter is supported by my channel checks and auto sales data today.

To shut down 600 stores you are probably looking at $100-$150 million in buildout costs and another $100-$150 million in lease termination expenses.  About $250 million pissed down the rathole.

Auto companies are shutting down plants.  Airlines are abandoning terminals and mothballing planes.  Banks and Mortgage Companies shutting down and laying off hundreds of thousands.

Now people on Social Security can't make ends meet.  Same with others dependant on government payouts.

Sales are slowing down in so many areas and no one seems to give a damm.

If this path continues, dramatic changes will have to take place.  You can't have 20-30% of your population starving.

You may hear ideas like the government attaching everyone's retirement accounts and combining it with social security to make ends meet for the greater good of the nation.

Pretty soon we could hear cries for nationalization of business like airlines and autos.

It is absolutely nuts that so few see what is really going on......I talk to people that own banks, substantial real estate interests, transporation companies, ect.......none have ever seen anything like this before.

I am not sure how this is going to play out...but one thing for sure....it is BIG!!!!!

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#3) On July 01, 2008 at 5:30 PM, MakeItSeven (32.95) wrote:

You may hear ideas like the government attaching everyone's retirement accounts and combining it with social security to make ends meet for the greater good of the nation.

And remember, you hear this novel idea of confiscating private properties from alstry first so you can give him credit when it happens, or not. :-P

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#4) On July 01, 2008 at 5:40 PM, AnomaLee (28.84) wrote:

I doubt it's because of one month... Few corporate decisions as large as this are decided in a few weeks. Starbucks has been in decline for many quarters, and it has accelerated in recent quarters. Mr. Schults is on record for saying this is the "worst consumer environment the company has ever experienced" during last quarter's transcript

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#5) On July 01, 2008 at 5:43 PM, alstry (35.21) wrote:

12,000 people losing health benefits from the Starbrucks shutdowns.  You think the auto companies or airlines are going to hire them?

1 out of five Americans do not have health benefits.  The system can't continue like this.  I talk to healthcare administrators and they are missing budget for the first time in years.

You will likely soon hear screams for a nationalized healthcare system....then airlines and autos....

Sorta like Trading Places.....The West is heading more towards Socialism and the East is heading more towards Capitalism......the question is who bet the buck?

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#6) On July 01, 2008 at 6:41 PM, jahbu (89.06) wrote:

"Only a crisis-actual or perceived-produces real change.  When that crisis occurs, the actions that are taken depend on the ideas that are lying around."   Milton Friedman

This shock to our Republic is exactly what these freaks have been waiting a lifetime for.

Be careful people,  the think tanks have some really wild IDEAS lying around.  

Makes me sick watching this all happen and our congress and senate just sit on their hands or add fuel to the fire, while Rome burns.

There is no doubt in my mind that this crisis was intentionally done. Banks do not do what they did, without the OK from the Fake Gods.  Main Stream Media have been lying and hiding the truths from us for many many years.

While most think the enemy is some cavedweller in the mountains of Afghanastan, a few have figured out that the real RATS are wearing 3 piece suits and gold watches.

Jahbu

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