Saturday, March 18, 2006 1:25:29 PM
It also states that they are "an online provider of DVDs for rent, based near Washington D.C.", and that w/ the aquisition they'll also be "adding a new distribution facility".
Given that the PR was released 2/10/06, they are still w/in that window (not saying it can't take a bit longer, who knows), but moving along to the most recent PR about their PA DC move to MA...
In there they also state, "Our business plan calls for us to be looking to open new distribution centers in Maryland, Florida, Texas and Washington during 2006."
I was originally thinking to myself, "Why would they feel the need to put two DC's in the MD/WashDC area?" I know there are a lot of folks in that area but that seems to be a bit of overkill considering they have a whole country to think about soon. Then it occurred to me that, IMO, they stated those new DC openings in that order on purpose to give those closely reading a clue as to their order of expansion. MD being the first one on the list because the DVDAvenue aquisition will be completed soon and my guess is their DC is located in MD, so that scratches one off the list.
They then list Florida next in their list of DC's they'll be opening. We already know now from gracious posters here that GnF has been in six new CC stores since the beginning of this month. That would clue a SE CC expansion in conjunction w/ a NE CC expansion so the logical next DC would of course be in Florida. With those two expansions taking place simultaneously and moving towards the middle of the East Coast, that would blanket the entire East Coast in short order. And, IMO, since they'll already have an established DC through their DVDAvenue aquisition placed smack dab in the middle, it's all very doable.
Next on the DC list is Texas. Again, makes perfect sense for a "Westward HO!" expansion. That DC would logically take care of the central states region. They already have the west central states and mountain states covered w/ their Colorado DC (which I get my DVD's to/from). Then finally on the DC planned list is Washington (state). Again, perfect, since they already have a DC near San Diego which would take care of the SW region so the only spot left is that NW region. Why did GnF drop HI off their planned DC addition list? IMO, because CC only has one store there and I'd think they can figure something out w/ CC and possibly the military PX there ;) to service those folks in due time (2007).
IMO, given that I happen to believe and trust what they wrote in their latest PR concerning their DC expansion plans for 2006, this obviously tells me that by the holidays they have all of those DC's in place. All which points to, IMO, a rapid nationwide expansion through most, if not all CC stores by next holiday season. After that, in 2007, I'd suspect that they'll monitor the TAT on their merchandise and place a few more DC's where they see the greatest need. Also, IMO, they won't overkill the DC's around the country like Netflix has. It is my personal thoughts that most folks are fine w/ two-day TAT and the extra time/money/energy to setup and maintain the extra DC's to "guarantee" one-day TAT would not be worth it from a business standpoint. I think this especially since they'll be offering more for less than Netflix does.
My previous thoughts on expansion (being, most if not all CC U.S. stores by next holiday season) also falls in line w/ my original thought that this needs to be the case if CC wants to capitalize on this great opportunity they have to entice the most customers as possible to their stores instead of BB for their home entertainment needs/wants/desires. Afterall, who doesn't like "one stop shopping" at a cheaper price to boot! Again, coupled w/ CC's "110% price guarantee", even if a customer would later find a TV, computer, game console, whatever, advertised at a lower price at BB (or elsewhere), they just bring the proof to CC and CC still makes the sale, they just give up the difference plus 10% to the customer. No biggie, since they've always done that and have that figured into their forcasting margins.
You know what else this tells me? This tells me that we'll soon be seeing, as the holidays draw closer and the expansion continues to blanket the U.S., major nationwide advertising with the help of CC to more concretely solidify this partnership and to get it in the minds of the consumer that there's something better waiting to save them time and their hard earned $$'s at CC.
Funny thing personally for me here too is the fact that almost two years ago I vowed never (if at all possible) to go into a BB again due to a shopping experience there. When getting a new computer there they clearly engaged in false advertising, deceptive sales tactics AND they didn't give me all my money back (labor) when I "found them out" and even proved to them my uncovering of their practice. Talk about being pissed that day. Anyway, so seeing this AND being invested here is "sweet revenge" for me. Not that I personally am a vengeful person, I always give it up to Him to take care of.
Well, looks like He's doing just that in His own way.
Remember, it's never on our time but always His time and always expect things to take longer than our impatient minds think they should take.
"Good things come to those who wait"
All of the above is IMHHO, of course. ;)
Have a great one, everybody! This is gonna be a fun ride! Off to the casino today...Gamblin' on the Range! loL! :)
lns
http://biz.yahoo.com/iw/060210/0109422.html
http://biz.yahoo.com/iw/060315/0113240.html
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