TUES is amateur hour. Take a hodge podge of merchandise, throw it on some industrial-type shelves, and place in a store location off the beaten track. You're talking about a fundamentally broken business model. Christmas 2013 will prove this to be the case.
Agreed. The TUES model is outmoded. It maybe worked when the company was formed, but now it has deep structural problems. I shorted more at lunchtime.
TUES is spread way too thin: more than 800 smallish stores, literally spread coast to coast, with no brand recognition (physical or e-commerce), generating only a bit over $800 million of revenue, serviced by ONE distribution center. The geographic footprint is too dispersed, in particular vis-a-vis the national competition which has put in place a more efficient, better-spaced distribution network. TUES remains grossly overvalued, and the share price has more deflation ahead. There is no fundamental, discounted cashflow scenario that I have run that comes even close to supporting the current price. None.