Sat, Aug 30, 2014, 12:21 PM EDT - U.S. Markets closed

Recent

% | $
Quotes you view appear here for quick access.

Build-A-Bear Workshop Inc. Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • jacosa jacosa Jan 8, 2008 12:56 PM Flag

    Worst Case for BBW

    You appear to have the same blind spot as the bearish commentator I posted about. BBW is making a perfectly reasonable response to SSS declines: they're opening lots of stores and reducing the price to open them. It's happening, and while it isn't the way I'd prefer to see that battle fought, it makes sense. Skins and stuffing machines can move from closed stores to new ones (I suspect STRONGLY that the guts of the big ornate machines in the old stores and the smaller ones in the new stores are the same). I don't know how mall managements handle it when a tenant tells them that they can either walk away from a big store on a long lease or move to a smaller site within the mall--empty stores are very very bad for a mall, so I'd expect them to be willing to make a livable deal. When that doesn't work, I can see no obstacle to putting up a partition and trying experimental concepts (Dino, Friends, something else) on the other side--it gets some return from otherwise-wasted space.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • "I don't know how mall managements handle it when a tenant tells them that they can either walk away from a big store on a long lease or move to a smaller site within the mall"

      ======================================================
      You don't just **walk*** out of a long term mall lease. Guess who writes most mall leases, the mall or the tenant?

      And moving from a large store to a smaller one requires building out the new store and often writing off the old improvements which are likely pretty new.

      One other thing; Mall rent per sq ft is higher for small stores than bigger ones.

      BBW can't throw its weight around anymore. With rapidly declining SSS, it is starting to look like one more (of many) troubled mall retailers.

      Again. There's a reason this stock is so weak.

 
BBW
13.04-0.14(-1.06%)Aug 29 4:01 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.