Why Retail Stocks Will Crash -- Even Walmart and Target
It's probably safe to assume the proprietors of these establishments did not conceive them as fine eateries. In fact, in all three cases, food likely took a backseat in the business plan.
In it's most recent annual report (via the SEC), CEC states "the dining and entertainment components of
The same goes for Dave & Busters as well as Hooters. You do not go there for the food. These companies know this. You go there to provide your children a wholly artificial experience, drink beer or flirt with women who have large breasts.
It might sound like I'm knocking this approach. I'm not. I can participate in these in-store adventures with the best of them and eat loads of terrible food while I'm at it. In fact, I think run-of-the-mill retailers ought to mimic the approach.
Radio Shack (RSH) , Best Buy (BBY) , even WalMart (WMT) and Target (TGT) -- soulless brick and mortar retailers need to stop dipping into the same dead and tired retail toolkits and do something different. Maybe even crazy.
Retail that works has several key things going for it.
First, successful establishments provide unique and/or stimulating environments. The atmosphere draws you in. Makes you feel comfortable. From there, other ingredients enter the mix.