Looks like New England Development might lose a key tenant for its Nashua lifestyle project--Whole Foods.
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9 comments:
Anonymous
said...
I'd rather have a Trader Joe's. While Whole Food stores (at least the one we used in Boston) do have some good stuff, much of it is that weird stuff they sell in "health" stores, and much of the rest is way overpriced.
Yeah, a Trader Joe's would be excellent. They put one in on Boylson St., in Boston ... it was really small but well stocked for my needs, at least. And about 20% cheaper than the Back Bay Shaw's.
In a followup piece, it was noted that most, if not all, of the stories being closed are in places where there are multiple stores in close proximity (like in Boston). So I guess ours is safe. And, of course, Tom's right - why waste money on a remodel?
Starbucks has over the past year dropped their CEO and the Chairman took back his old job. He so far has made drastic changes. Some of you probably remember the day they were all shut down (personally i've never been in one, but i'm one of those townies that people talk about).
Stock price dropped insanely. Luckily many people had put money in Krispy Creme and therefore the Starbucks drop didn't get the same attention when KC proceeded to die on a nationwide-scale (lost 90% of val over 4 years).
Any plan on reducing the # of stores at such a large number would be held very close to the vest. Renovations would be handled by a geo-distribed organization, and I would expect anyone under the SVP level would not know about the discussions on such a large reduction in STAFF.
This would be a separate or external group that was tasked with examine the best solution to the problem at hand (stock price, not incoming rev - that is not the issue).
The savings is in HR costs and monthly leases, especially future projections (which is what this is all about, getting the stock back up to its old price, or at least better than similar orgs).
A $25/50k fixed renovation is not only minor but also easily taken of taxes not only as cost of doing business but also, if the store was closed, as a loss.
What's also funny is that its not really a large adjustment. Most corps that have had such a valuation change make much more drastic moves (look at GM, GE, HP, IBM).
Starbuck's is dropping ~7% of their staff (and i'm certainly that 99% are not corp workers but local store staff that can be easily dropped). That is nothing compared to the companies listed above and many others.
IMHO, this is a FIN101 lesson. Make a "major" change, announce it to all, then get people to say "go starbucks" and purchase stock.
Raise the price and get the large holders happy.
There is no way that the regional manger does not put the one in the port as an AAA investment, especially when looking on the long-term. Its well know that our property sale numbers have not dropped much compared to most of the rest of the state.
As for the Whole/Traders. They are nice places but why not go to the other locations in town.
I know many people who shop at these stores. They are all excited about the farmers markets in boston. Sadly I expect they never grew up working on a farm. A farmers market is when your dad tells you to go out back and pick dinner.
That said, the Blue Ribbon burnt ends in the Whole Foods on Prospect St rocks. The sushi is okay but there are better options. The cheese section is great but there's no way that a location in nbpt could compare with our specialized cheese outlets.
thanks, sds
(ps. one of those people who like to call themselves natives is probably going to give you all a bunch of ****. but understand they are really not natives)
(pps. Councilor Cameron. your post on this subject is right on target (http://edcameron.blogspot.com/2008/07/starbucks-retrenchment-of-third-place.html). note, i work at the place where that whole case thing was started. most of ours were on customer service. i blame the financial stuff on Wharton, I think they are still the running champs in the "Convicted MBA" class.)
(ppps. buy many of us are hoping to be the leaders in the "Impeached MBA" class)
(pppps. any of you how can figure out the above references gets a free drink tomorrow at the best place next to starbucks.)
Thanks for the thoughtful post. I was kidding about the remodelling given Starbuck's deep pockets.
I really hate the smiley face thing but I should have employed it there. My bad.
Yes, I've worked for a big company and I know what they're capable of.
All that being said, I'd be surprised if the Newburyport site were the place to go.
I see many redundancies in cities like San Francisco where they've crammed stores into every available phone booth.
(One of the best Onion articles of the time had a Starbucks opening in the bathroom of a Starbucks.)
I'm sure the decision will be based largely on foot traffic, but there's something to be said for a promotional location. Also, that store has been around for more than a decade. I suspect that might count for something.
But who knows. As you noted, big companies operated in way that often are difficult to comprehend.
I happen to think Alex Beam always comes off sounding like a jerk.
9 comments:
I'd rather have a Trader Joe's. While Whole Food stores (at least the one we used in Boston) do have some good stuff, much of it is that weird stuff they sell in "health" stores, and much of the rest is way overpriced.
The produce section would be good, though.
Yeah, a Trader Joe's would be excellent. They put one in on Boylson St., in Boston ... it was really small but well stocked for my needs, at least. And about 20% cheaper than the Back Bay Shaw's.
I'd take a Whole Foods, Trader Joes, Philbrick's...anything. Any one of them would do a fabulous business in this town.
Never mind food, Tom. What's the deal with Starbucks in town?
Well they wouldn't close a place after a recent remodel, would they?
I mean, remodels are expensive.
In a followup piece, it was noted that most, if not all, of the stories being closed are in places where there are multiple stores in close proximity (like in Boston). So I guess ours is safe. And, of course, Tom's right - why waste money on a remodel?
Hi,
Why close a store after a recent remodel?
Any of you ever work in a large company?
Starbucks has over the past year dropped their CEO and the Chairman took back his old job. He so far has made drastic changes. Some of you probably remember the day they were all shut down (personally i've never been in one, but i'm one of those townies that people talk about).
Stock price dropped insanely. Luckily many people had put money in Krispy Creme and therefore the Starbucks drop didn't get the same attention when KC proceeded to die on a nationwide-scale (lost 90% of val over 4 years).
Any plan on reducing the # of stores at such a large number would be held very close to the vest. Renovations would be handled by a geo-distribed organization, and I would expect anyone under the SVP level would not know about the discussions on such a large reduction in STAFF.
This would be a separate or external group that was tasked with examine the best solution to the problem at hand (stock price, not incoming rev - that is not the issue).
The savings is in HR costs and monthly leases, especially future projections (which is what this is all about, getting the stock back up to its old price, or at least better than similar orgs).
A $25/50k fixed renovation is not only minor but also easily taken of taxes not only as cost of doing business but also, if the store was closed, as a loss.
What's also funny is that its not really a large adjustment. Most corps that have had such a valuation change make much more drastic moves (look at GM, GE, HP, IBM).
Starbuck's is dropping ~7% of their staff (and i'm certainly that 99% are not corp workers but local store staff that can be easily dropped). That is nothing compared to the companies listed above and many others.
IMHO, this is a FIN101 lesson. Make a "major" change, announce it to all, then get people to say "go starbucks" and purchase stock.
Raise the price and get the large holders happy.
There is no way that the regional manger does not put the one in the port as an AAA investment, especially when looking on the long-term. Its well know that our property sale numbers have not dropped much compared to most of the rest of the state.
As for the Whole/Traders. They are nice places but why not go to the other locations in town.
I know many people who shop at these stores. They are all excited about the farmers markets in boston. Sadly I expect they never grew up working on a farm. A farmers market is when your dad tells you to go out back and pick dinner.
That said, the Blue Ribbon burnt ends in the Whole Foods on Prospect St rocks. The sushi is okay but there are better options. The cheese section is great but there's no way that a location in nbpt could compare with our specialized cheese outlets.
thanks,
sds
(ps. one of those people who like to call themselves natives is probably going to give you all a bunch of ****. but understand they are really not natives)
(pps. Councilor Cameron. your post on this subject is right on target (http://edcameron.blogspot.com/2008/07/starbucks-retrenchment-of-third-place.html). note, i work at the place where that whole case thing was started. most of ours were on customer service. i blame the financial stuff on Wharton, I think they are still the running champs in the "Convicted MBA" class.)
(ppps. buy many of us are hoping to be the leaders in the "Impeached MBA" class)
(pppps. any of you how can figure out the above references gets a free drink tomorrow at the best place next to starbucks.)
Hi SDS,
Thanks for the thoughtful post. I was kidding about the remodelling given Starbuck's deep pockets.
I really hate the smiley face thing but I should have employed it there. My bad.
Yes, I've worked for a big company and I know what they're capable of.
All that being said, I'd be surprised if the Newburyport site were the place to go.
I see many redundancies in cities like San Francisco where they've crammed stores into every available phone booth.
(One of the best Onion articles of the time had a Starbucks opening in the bathroom of a Starbucks.)
I'm sure the decision will be based largely on foot traffic, but there's something to be said for a promotional location. Also, that store has been around for more than a decade. I suspect that might count for something.
But who knows. As you noted, big companies operated in way that often are difficult to comprehend.
I happen to think Alex Beam always comes off sounding like a jerk.
-Tom
Speaking of the Onion
http://www.theonion.com/content/node/33988?utm_source=onion_rss_daily
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