Quote:
Originally Posted by taustin
That's not necessarily true. It does nothing to raise revenue, but revenue and prfoit aren't the same thing. If they close stores that are losing money, it can, indeed, raise profits.
Nobody predicted Home Depot's death spiral when they were closing unprofitable stores a few years ago. Nobody predicted Walmart's death spiral when they were closing unprofitable stores a few years ago.
It could be the salvation of the company, or it could be another in a long series of bad decisions. From the outside, the only way we can tell is to watch what happens.
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Neither of those companies you listed are "dying" industries, though. On top of that, none of them were subject to so many years of ineffective management. Barnes and Noble has been in trouble for a very, very long time, and it's never gotten better. People talk about a "death spiral" because it's just the way, the trend, that has been happening. I think the store closures are overstated, of course. Companies close stores all the time, and I think they're actually opening 15 as well.