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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Answer Team Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 28041  
Subject: Re: Investing in both leaders Date: 10/20/2012 5:07 PM
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But something to keep in mind is market saturation. In the early days of big box stores, all the ones you name were furiously building new stores. Hence, their growth rate was large.

As time goes on, the best sites are built. To continue store growth means developing more expensive sites or adapting to smaller inner city stores. etc etc. Growth by store count becomes more difficult.

Once stores are built, they grow by raising prices, by gaining market share from competitors, with the general economy, or by international expansion.

Most of the big box stores are under attack from on-line retailers and are struggling to retain the market share they have. Some are responding to online competition better than others.

My point is, analysis needs to be deeper than just a cursory look at the numbers. One needs to gaze into the crystal ball.
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