One of Bay Area's last Fry's Electronics stores closes

[jim stephens]

On 12/31/2019 1:32 PM, Ali via cctalk wrote:
> Re-sending for legibility...
>
>> Fry's says that they
>> are doing fine.BUT, that they are moving to a "consignment" model -
>> they now plan to pay their suppliers only AFTER the merchandise
>> sells.Or at least that is what they are telling their creditors.They
>> could revitalize the stores, if they would add Jolt Cola, Canfield's
>> Diet Chocolate Fudge soda, potato chips, cookies, toothpaste, rosin-
>> core lead solder, and electronic components.  Maybe even collaborate
>> with Fat-Brain to open a computer literacy bookstore.--
>
> No. They are closing: http://www.tonetoatl.com/2019/12/Frys-Electronics-Closed-Duluth-Gwinnett-Place.html
>
>
> I really can't see any manufacturers lining up behind the Fry's BS. They just don't have the foot traffic for it. Now as Fred says if they went back to filling a niche that is very empty (i.e. an electronics part retailer with stock of hard to get goods on hand) that may work. I hate having to order 50 capacitors from China every time I need one....
They actually were changing to a way of flooring the merchandise closer 
to the food industry.  Many things on the shelf in larger supermarkets 
are actually managed and stocked at the expense of the people who have 
the shelfspace.  So that becomes critical.

Years ago a drug chain called Zody's used the same method, but for 
entire areas of stock, not by item.

A friend had a pitabread business and went into Ralphs (Krogers in 
Southern ,CA).  The buyin for about 2' of space was about $500,000 then 
you had to supply the stock.  Payback came to you when you shipped more 
to them than they returned or discarded stale (or put in markdown).

Frito-Lay as well as some of the alcohol aisle actually send in 
personnel twice a day to do the stocking.  The store staff doesn't touch it.

Anyway it doesn't seem to be happening, i heard the story Fred has 3 
months ago, and it doesn't take this long to do the deal if it's going 
to work.

Years ago when they expanded a friend who had a similar electronics 
business said that the electronics side of Fry's was done with large 
amounts of debt.  My friend's store was well positioned to expand, but 
they wouldn't do the debt model Fry's did.

That said, either Fry's is profitable, or they've paid down their debt 
to where they can withstand what is going on.  If it were a business 
with a large debt load the banks wouldn't let them take a week, must 
less 3 months and counting to do what is going on.

And those 100,000sf store rent keeps on ticking full or empty.

thanks
Jim