Circuit City, Hollywood Video, Linen and Things...what's next?

[Thespeckledkiwi]

So far I've seen a lot of businesses starting to close doors or at least reducing stores. So far electronic stores are getting hit hard with CompUSA and Circuit City going under. Hollywood Video as well. Here in Texas we lost a lot of Albertsons' and I just saw that Linen and Things close up shop before the holiday. I know I'm missing some other stores that have fallen hard on these lean times but what other businesses do you think will get hit hard?

From my experience, bookstores are going to get hit hard. I've heard some stuff working at one and I wouldn't be surprised if they don't start closing down some stores down in the US. I am also very surprised Conns went down before Circuit City and I have no idea how they are operating.

On that note, Office Max and Depot? How are they surviving? I know they do a lot of office stuff (duh) but still, half the time I don't see a person in the stores much less buying stuff.

Oscar's Sports now something else, I wouldn't be surprised to see them close shop either.

 

[RJDiogenes]

I was fearing for the survival of bookstores under the best of circumstances.

 

[RoJoHen]

Hollywood Video, huh? Is it all of them? Because ours seems to be running strong.

This recession is crazy. I honestly haven't seen many places go under in my area, but the stories from elsewhere blow my mind.

 

[FordSVT]

I can't really judge this, my area is booming. New Costco opening, new Indigo superstore, new restaurant chains, new store brands in the malls. Nothing has closed, though I suppose if one of the big chains like Future Shop were to close nationally it would obviously close here.

 

[RoJoHen]

Last year a Cheddars closed, but that would have closed anyway, recession or not. It was just in a shitty location and never did any business.

Our area is actually quite booming, too. There are new stores opening all over the place.

A lot of the bars have closed in the last year, but that has more to do with the state's smoking ban than the economy.

 

[Jim Steele]

We've got the same thing happening on our shores. MFI and Woolworths closed up, then Zavvi (Virgin Megastore) got pulled down with them because they relied on Woolworth's distribution arm for stock.

Yet, there are still people who deny there's a recession. Boggles the mind.

 

[Crusher Disciple]

So far I've seen a lot of businesses starting to close doors or at least reducing stores.

But the Drafthouse is safe, right?

 

[RoJoHen]

Yet, there are still people who deny there's a recession. Boggles the mind.

You know, I don't deny that there's a recession, but there is absolutely no evidence of it in my daily life. My expenses are the same, my income is the same, I am in no danger of losing my job anytime soon, and new businesses are opening up all over the place.

It's just very bizarre how the economy can have such different effects on different parts of the country.

 

[Jim Steele]

Yet, there are still people who deny there's a recession. Boggles the mind.

You know, I don't deny that there's a recession, but there is absolutely no evidence of it in my daily life. My expenses are the same, my income is the same, I am in no danger of losing my job anytime soon, and new businesses are opening up all over the place.

It's just very bizarre how the economy can have such different effects on different parts of the country.

I didn't mean it in an accusing manor toward anyone in the thread, just to clarify.

I'm the same as you, I often joke that I'm simply not rich enough to be affected. But then, I am seeing the effects of it elsewhere and all the local branches of said stores have now closed. There's a sense of trepidation in the air.

 

[Spot's Meow]

Unfortunately Mervyns went down. It's so weird to think of them being gone...that's where I got most of my clothes as a kid. It was kind of in a unique place, halfway between a Target and a Macy's. But it's gone now.

 

[Timby]

On that note, Office Max and Depot? How are they surviving?

Not well, at least in the case of Office Depot, which recently announced the liquidation of about 125 stores, several distribution centers, and the termination of a little over two thousand employees, as well as the halting of the vast majority of its 2009 store openings.

 

[Sheep]

Unfortunately Mervyns went down. It's so weird to think of them being gone...that's where I got most of my clothes as a kid. It was kind of in a unique place, halfway between a Target and a Macy's. But it's gone now.

Mervyn's was my favorite store to get moderately priced everyday clothing essentials (things like t-shirts, dress shirts and the like). I'm leaving CA soon anyway, but I'll miss them.

As much as I don't like seeing people lose their jobs, a good number of these stores were in dire straits long before the economy took a dive due to utter incompetence from management (Circuit City) or oversaturation (Office Depot).

 

[darkshadow0001]

Geez, I'm glad I work for Toys 'R Us then... there's always little kids who need toys

Hollywood Video? That's news to me. I knew about Linen & Things and Circuit City, though.

 

[Peach Wookiee]

Mervyn's was actually part of the Target family. I found this out a few years ago, shortly before the Mervyn's chain in Washington State went under.

 

[Aquehonga]

Signpost of this era.

Circuit City near me keeling over & the folks in that store were cockily sure their store wasn't going belly up. Hear its closing 'bout 3rd week of March.

The Linens'n'Things just over a Starbucks from this CC bought the farm already. KB Toys in my local mall right near where that CC is, is about, if not already, to be kicking daisies.

The lone Hollywood Video in my county, & in the shadow of a hotel, supermarket, & Applebees, already had its wake & funeral months ago.

I'm sure there are other chains with stores on life-support too.

Then what replaces these deceased businesses?

Where I live they always muck that up. Never anything new &/or genuinely different, chain or not.

 

[Holdfast]

Then what replaces these deceased businesses?

New business with effective business models.

We've had a pretty unprecedented period of growth and a lot of existing companies have rumbled on with shocking models, simply becuase of a benign macro climate. Now they've been found out, and are going under.

This is healthy, because it clears out the canopy & undergrowth a bit, allowing new companies, with more effective models to compete more effectively and grow when the inevitable upturn finally arrives in a couple of years.

Recessions are healthy & necessary, in the medium-term and beyond, though that is not to discount the short-term pain.

 

[Thurisaz]

Black Angus restaurants went under also.

 

[Mallory]

[You know, I don't deny that there's a recession, but there is absolutely no evidence of it in my daily life. My expenses are the same, my income is the same, I am in no danger of losing my job anytime soon, and new businesses are opening up all over the place.

I'm in the same position you are, no evidence of a recession where I live and new businesses are opening around me too. Even our local Hollywood Video is doing well.

I guess the one recession-related thing I've noticed is better deals on meals when I dine out, there's almost always a special or two that most places didn't used to have.

 

[Hoser]

Charter Communications just hired bankruptcy lawyers.

Then what replaces these deceased businesses?

New business with effective business models.

I'm not entirely sure it's always that. Sometimes it's just a giant firestorm, and then things just grow back. The models don't necessarily evolve....they make the same mistakes or just are too weak before the next nightfall.

There should be a way to eliminate this constant cycle of expansion and recession.

 

[Gryffindorian]

Last year when I first heard about Circuity City going out of business, I thought it was just a rumor. Just this past weekend, one of the CC stores in my area was doing a 30% liquidation sale. I wanted to check it out, but the parking lot was packed! And it didn't seem like a lot of people were buying a handful of merchandise. Most walked out of the store empty-handed.

As for bookstores, all the Borders stores in my area seem to be doing well. The places are always crowded; however, most people decide to read the books in-store rather than buy them, so I don't know if they're actually doing well sales-wise.