DTD Virgin Megastore Rumor Revisited

[doconeill]

On this point, I must disagree with you. An individual store within a chain may have strong sales, but that doesn't matter if the entire chain is experiencing weak sales, or if the business that owns the chain is itself in financial trouble. If an entire chain closes, even the most successful stores within the chain will close with it.

Totally agree...I was typing the same thing myself.

And do not confuse sales with profits. Strong sales can LEAD to profit, but only if revenue exceed expenses.

And strong compared to what? Other stores in the chain? Other music vendors? If CD sales erosion is as bad as some reports, strong sales may still only represent a fraction of what they were in the past, but I'm sure their lease hasn't gotten any smaller.

I've never set foot in that store. I don't go to Disney to buy music, or see a movie for that matter. I can do that at home.

 

[zulemara]

an entire chain can go out of business, but ones with strong sales can survive. IE Disney store locations, the lone Bennigans left by Vista Way, I've even seen it happen with restaurants in Wisconsin. On top of it they initially reported this store wasn't effected and now it is. I guess I just don't believe anything Disney reps say to the media anymore

 

[doconeill]

an entire chain can go out of business, but ones with strong sales can survive. IE Disney store locations, the lone Bennigans left by Vista Way, I've even seen it happen with restaurants in Wisconsin. On top of it they initially reported this store wasn't effected and now it is. I guess I just don't believe anything Disney reps say to the media anymore

Restaurants are different. They don't rely on merchandise stock in the same way. To go independent with a restaurant is relatively easy in comparison. How many independent music stores still exist?

The Disney store chain did not die. The parent company sold them back to Disney. Again, a different situation. More than likely Virgin tried to sell the chain, but there were no buyers, or at least none they felt was a serious enough offer.

And besides, if Disney hopes to lease the space to someone else, of course they are going to say it had "strong sales", which is as I said a vacuous term. If they said the location was losing money hand over fist (which is certainly could have been), who would take the location?

 

[MemoToMe]

Virgin is just another casualty in the new digital age. Brick and mortar stores can no longer compete when people can download their music online for cheaper. Many stores like Wherehouse and Tower Records have shut their stores and opted for internet-only purchasing. You can probably expect this to happen to movies in the next decade or so.

The times they are a-changin'

 

[NMW]

I'm not all that bummed about the store closing. It never really help that much appeal for us. And hey, where will all the scary looking teenagers hang out now? It seems like all they have left is the movie theater.

 

[mitros]

I'm not all that bummed about the store closing. It never really help that much appeal for us. And hey, where will all the scary looking teenagers hang out now? It seems like all they have left is the movie theater.

Oh, don't worry, they'll find a place................