Forever 21

Discussion in 'Property Market Economics' started by Beano, 2nd Oct, 2019.

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  1. Scott No Mates

    Scott No Mates Well-Known Member

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    I'm going green in my old age :rolleyes:
     
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  2. datto

    datto Well-Known Member

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    In any business you need to delight the customer. If you're mowing lawns it could mean doing that extra 5 minutes of work, just to keep the customer happy.

    I look for price, quality and a returns policy. I think consumers like an easy returns policy. Sure, the vendor may be taken advantage of, but that negative would be compensated by increased sales.
     
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    I always knew that you'd put in those extra 5 minutes on the neighbour's grass.
     
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  4. Dean Collins

    Dean Collins Well-Known Member

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    Couple of quick points as i track this space pretty closely as have a sizable investment in one of the USA reits.
    1/ Four landlords isnt an issue - over here there are a few reits that dominate the retail landlord space (eg same as in Australia with Westfield).
    2/ Forever21 is a blip on the radar.....get onto SeekingAlpha if you want to see the retail chains that actually worry REIT investors.
    3/ Forever21 basically aged out....eg buyers of theirs are no longer in the right age range and new shoppers didnt want to buy an "old no longer trendy brand".
    4/ This said....the real issue with Forever21 was their European and Asian locations....not the USA.

    This said - there are some stonking bargains in the USA retail REIT space (though with where the $A is at the moment and the fact its likely to go up over the next year from its current position.....not sure anyone in Australia should be investing overseas).

    Like i said check out SeekingAlpha if you want to understand whats happening in the market, ive invested into $WPG which is artificially depressed due to ridiculous levels of shortselling (its currently paying a 25% dividend - so around 7% of my investment is being returned every 13 weeks). Check out the FINRA shortselling declarations twice a month for more. I expect a return to $6+ with a 15% dividend once the shortsellers re-buy into the market to settle their short sales.
     
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