RE:RE:RE:RE:RE:RE:TD commentsI totally agree gashole, my thoughts from the beginning, if a retail store or business goes down because of 2-4 months they couldn't have been doing too well from get go, everything must have been tight before this, I would hazard a guess that for any empty location a new business will step in, you can shop online and so forth but clothes etc and the social aspect of shopping has just too much demand in an ever changing society, let alone the necessity stores and businesses, there has been alot of money thrown around thru this thing and I dont even know anyone personally who has "struggled" thru it although I'm sure some businesses have. We are headed for a strong recovery, this thing is over and i think our government and the municipalities should start treating it as such, there is nobody saving lives with these masks and people in lines like zombies jmo. Where were the fake mask laws in march and april when maybe it would have made a difference?? Cheers! .....
gashole wrote: My retail operation is actually doing fairly well and I sell pretty high-end products my average sale is around $3,000 Canadian and it's household goods my profit margin is roughly gross 50%.. I would suggest that somebody who is not able to pay the rent really never had that successful of a business to begin with my rent last year was 6.5% of my sales... employee salary and wages Etc was more... it's easy to cut overhead with regard to wages you just cut a person or two here or there or cut back on the hours they work something along that line but when it comes to rent you cannot just decide to cut the rent or that means you close a store location.... shopping mall rent is expensive but generally people in shopping malls sell products that are very high in margins, or volume.. rent is not the be-all to end all for retail stores and it will shut some down that have just simply too much overhead, but I would suggest that they were already struggling anyway... but I think for most people they will manage through this.
DocJunior wrote:
Even with widespread closures from overleveraged retailers, I doubt we will see unleased space for any significant period of time. Lower rents to entice tenets? Sure. But outside of a significant second wave I doubt retail space goes unused for long And even still, enclosed malls represent a fraction of their revenue. How do you justify a 50-60% fall in value when 90% of their capacity to generate cash flow is intact? I'm not complaining, I got in at ~9.50 and plan to hold long term, but I think the idea that there is a fundamental paradigm shift happening that makes HR's assets worthless is flawed