On 12/31/2019 1:32 PM, Ali via cctalk wrote:
Re-sending for legibility...
Fry's says that they
are doing fine.BUT, that they are moving to a "consignment" model -
they now plan to pay their suppliers only AFTER the merchandise
sells.Or at least that is what they are telling their creditors.They
could revitalize the stores, if they would add Jolt Cola, Canfield's
Diet Chocolate Fudge soda, potato chips, cookies, toothpaste, rosin-
core lead solder, and electronic components. Maybe even collaborate
with Fat-Brain to open a computer literacy bookstore.--
No. They are closing:
http://www.tonetoatl.com/2019/12/Frys-Electronics-Closed-Duluth-Gwinnett-Place.html
I really can't see any manufacturers lining up behind the Fry's BS. They just
don't have the foot traffic for it. Now as Fred says if they went back to
filling a niche that is very empty (i.e. an electronics part retailer with
stock of hard to get goods on hand) that may work. I hate having to order 50
capacitors from China every time I need one....
They actually were changing to a way of flooring the merchandise closer
to the food industry. Many things on the shelf in larger supermarkets
are actually managed and stocked at the expense of the people who have
the shelfspace. So that becomes critical.
Years ago a drug chain called Zody's used the same method, but for
entire areas of stock, not by item.
A friend had a pitabread business and went into Ralphs (Krogers in
Southern ,CA). The buyin for about 2' of space was about $500,000 then
you had to supply the stock. Payback came to you when you shipped more
to them than they returned or discarded stale (or put in markdown).
Frito-Lay as well as some of the alcohol aisle actually send in
personnel twice a day to do the stocking. The store staff doesn't touch it.
Anyway it doesn't seem to be happening, i heard the story Fred has 3
months ago, and it doesn't take this long to do the deal if it's going
to work.
Years ago when they expanded a friend who had a similar electronics
business said that the electronics side of Fry's was done with large
amounts of debt. My friend's store was well positioned to expand, but
they wouldn't do the debt model Fry's did.
That said, either Fry's is profitable, or they've paid down their debt
to where they can withstand what is going on. If it were a business
with a large debt load the banks wouldn't let them take a week, must
less 3 months and counting to do what is going on.
And those 100,000sf store rent keeps on ticking full or empty.
thanks
Jim
