What Do You Know About A Business?
I noticed Linens'n Things is likely to file for bankrupcy protection. I noticed that it was in serious trouble a few days ago only I couldn't find a ticker to underperform, oh well.
But that got me thinking about what I know about that business. In Vancouver (Burnaby) we have a massive mall called Metrotown. A couple years ago I noticed this Asian linen store. I have always loved the stuff that Linens'n Things carries, but it is sufficiently expensive that when I buy a bed set I buy one and I want it to last for years, so although I looked at their stuff, I bought very little. Well, this Asian linen store has beautiful good quality linens for anywhere from 20-50% of the prices. And since finding that store I have bought about 4 bedding sets that I can rotate through and I've bought complete bedding sets -- sheets, bed spreads, bed skirt, accessory decorative pillows, etc., -- for wedding gifts twice. Oh, and another wedding this September and guess what I'm buying...
I was in Costa Rica last summer and I noticed their prices for linens in their stores was even cheaper than what this stuff was priced in Metrotown.
It looks like Bed Bath and Beyond is also facing declining margins or sales.
There is no way an American or Canadian business can compete with these imports. There's no way that anyone working for a Canadian or American business trying to compete can make a living working at these businesses.