The Death Of Retail


#282

https://money.usnews.com/investing/news/articles/2018-04-08/adidas-to-close-stores-in-online-push-ceo-in-financial-times


#283

Not for us…


#284

I wouldn’t want to be a landlord of retail space. This is another bullish point for warehouse space. I can’t find a REIT that specializes in last-mile warehouses. Those will be the cash cows, since there’s very limited space to add new ones. It’s easy to add warehouses in the middle of nowhere.


#285

I thought I had posted this back in the day…


#286

I’ve seen that. The one with the high percent is SoCal only, and the other one is only 62%. I think warehouse space is mostly locally owned by large landlords in each area. It’s hard to invest in it.


#287

#288

Convert retail to warehouses.


#289

Retail is in denser areas. The rent per sq ft is way too high for warehouse. We should convert it to residential.


#290

Mini storage gets the same rents as residential and costs one tenth to build. Plus tenants have no rights and there are no toilets to maintain…


#291

There can’t be that much growing demand for storage though. If there was, PSA would be growing much faster than it is. Their profits are amazing, so there’s no reason to not expand of there was demand.


#292

They have plenty of competition. It is hard to find the land. You need a retail location with at least 20k cars going by a day. I have been involved in a few. A retail location is key. PSA yields 4% dividends. I get a cash on cash return of 10% on my Ventura self storage investment. I figure PSA just buyers competitors. Doesn’t build like we do.

PSA has a lot of old wooden crappy structures. Better know as Woody Walkups

They definitely have an image problem. Need to change their color scheme


#293

Uh oh, what am I going to do with that stack of 20% off postcards???


#294

#295

How about making this guy work the Black Friday shift at Walmart??? Oh, the horror!!!


#296

https://www.forbes.com/sites/richardkestenbaum/2018/06/24/how-retail-real-estate-continues-to-change/#4f0eb06b7ae1


#297

Come on, I was just breaking out the suntan lotion!!!


#298

Amazon’s PillPack Purchase Wipes Out $20 Billion in Pharmacy-Related Market Cap

Here’s a look at the impact of Amazon’s announcement on pharmacies and PBMs.

Walgreens Boots Alliance Inc. (NASDAQ: WBA) shares traded down 10.4% at $59.35, after posting a new 52-week low of $59.07 earlier. The 52-week high is $83.89. The company’s market cap dropped by about $7 billion. Walgreens also reported quarterly earnings this morning.

CVS Health Corp. (NYSE: CVS) traded down nearly 9.5%, at $53.45 in a 52-week range of $60.14 to $84.00. The hit to the company’s market cap was around $6.5 billion.

Rite Aid Corp. (NYSE: RAD) traded down nearly 11%, at $1.76 in a 52-week range of $1.38 to $3.12. The company’s market cap dropped by about $180 million.

Diplomat Pharmacy Inc. (NYSE: DPLO) traded down about 5.8% to $25.74. The 52-week range is $28.74 to $14.24. Diplomat’s market cap dropped by about $80 million.

McKesson Corp. (NYSE: MCK) down about 7.5%, at $133.93 after posting a new 52-week low of $131.70. The 52-week high is $1768.86. McKesson’s market cap dropped by nearly $2.7 billion.

Express Scripts Holding Co. (NASDAQ: ESRX) traded down more than 3% to $76.25, in a 52-week range of $55.80 to $85.07. Express Scripts has seen its market cap shrink nearly $1.9 billion.

AmerisourceBergen Corp. (NYSE: ABC) traded down 6.3%, at $84.16 in a 52-week range of $71.90 to $106.27. The company’s market cap has dipped by about $1.2 billion.

Cardinal Health Inc. (NYSE: CAH) traded down 7.8% to $48.83, after posting a new 52-week low of $48.77. The 52-week high is $79.28. Cardinal’s market cap lost nearly $1.4 billion.


#299

Some serious cost competition could help consumers. There’s no reason the costs of drugs should INCREASE each year. Anyone with manufacturing experience knows your yield improves over time which decreases the costs to manufacture. There’s an ugly game in drugs with markups, middle men, rebates, etc. No one knows what drugs really cost.


#300

Cost of manufacturing a drug is dirt cheap.


#301

Drug and pharma in general is a big mess.

  1. Patents prevent players from entering the market.
  2. Generics or non-generic are cheap abroad, but excessively expensive domestic. Makes you think of travel to go for some exotic medicine.
  3. Process takes long time.
  4. Pricing and cost is very opaque. Especially with insurance and stuff, I have no idea what something costs.