So many rumors contracts in peril.
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I'm hearing little bits here and there about my campus not renewing.
Byte me.
This just in from the board room!
Uh, no dude.
May want to pick up a Byteware download on Financial Accounting. God knows you'll pay too much for it.
To pay out bonus it is not same store sales. To determine if I would buy a retail business it is same store sales growth. Where all just trying to make a buck hear until the business collapses.
Bonus is top line and bottom line focused. Have to meet top line sales plan to open gate. News stores will definitely add to the top line (it doesn't care if sales growth is same store or new store). Increased sales is increased sales period. You are correct about the bottom line, new store growth with high rent will not add to the bottom line but guess what? As ML has indicated she can fix it. Fix it means lowering your cost in other areas to make up for the bottom line shortfall due to higher rents. She will target some of the fat areas such as IT, accounting and HR at ALL divisions which really have a long ways to go to be efficient and eliminate all of the overlap.
no one measures new stores for growth. No store will look good in year one if cost of acquiring the business is measure. It's same store year over year results that are meaningful.
My store sales were terrible.
What kind of rumors?
New stores may temporarily increase YTD sales comparisons for next year but it won't increase the bottom line.
Rent escalation is a problem. B&N is very aggressive as there ship is sinking right next to Follett. As the schools benefit from rent escalation, Follett will have no choice but to manage the bottom line through employee reductions. Leadership will do it as they know the only way to get sales growth is through new stores. Sales at existing stores continues to decline. My Arizona store took a beating for fall rush.