UBS analyst Michael Lasser thinks Best Buy (BBY) CFO Sheryl McCollum will need to be extremely...

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billddrummer Comments (1575)
 
That's a good place to start.

As I posted some months ago, as much as 15% of the company's big box floor space may be subject to lease renewal kickers:

I discuss this issue here:

http://bit.ly/Yem7nq

and here:

http://bit.ly/Qd8myH

Finally, someone in the C-suite is actually looking at the numbers, rather than all the shiny store signs.

I am aware of two stores which opened during the commercial RE boom of the mid 2000s, and which may be unprofitable at market rents.

Both stores are looking at significant rent increases if the leases revert to market rates.

As I've noted previously, it's lots easier to close stores if you're not publicly traded.

http://bit.ly/QNw5tc

Not to say that closing stores isn't disruptive no matter your ownership, but you don't have to sell it to shareholders in a conference call.

We will see what happens.

Time will tell, as it always does.
17 Dec 2012, 10:31 PM Reply Like