Reports regarding global tourism have begun to indicate that travellers are spending large percentages of cash at local retailers. This has extended to Times Square in New York City, with multiple merchants struggling to earn previous profits from a decade ago. Those retailers include the Gap, Cover Girl, Old Navy, American Eagle, Toys r’ Us and Coty Inc. This follows an increase in rent payments have occurred yearly, and tourists have begun to dwindle. Analysts have determined that limited retail shopping follows with the increasing presence of online retailers like Amazon and Etsy. It’s prompting retail locations to shutdown in Times Square, with real estate brokers working tediously to acquire new tenants. This has proven to be a challenging task for the highest-rated brokers in NYC.
Locations available for purchase include 1530 Broadway Street, which maintained a large-scale GAP. This extends to 1532 Broadway Street, which held a discounted Old Navy brick-and-mortar location. Additional venues available for purchase include 30 Times Square Blvd, which saw one of the fastest turnovers in Times Square history. Cover Girl opened their first flagship retail store, with it shutting down less than twelve months later. There’s also rumours that American Eagle Outfitters will shutdown their flagship times square location at 1551 Broadway Street.
Times Square hasn’t been remotely affected by the same levels that nearby retail neighbourhoods have experienced. The Manhattan District has seen rent prices drastically increase since 2010, with multiple retailers shutting down their doors and being replaced with office space. This included Toys “R” Us, which saw a nationwide shutdown in North America. Most of the contracts relating to these shutdown locations are in effect until 2023; this included both stores operated by Gap Incorporated. It’s estimated that this corporation in Times Square operates 80 thousand square feet. The Cover Girl location faces a similar decision of what to do, with them operation 10 thousand square feet until 2021. All companies are expected to re-invest their retail locations and re-approach the Times Square market by Q4 2020.
It’s not surprising that Gap Incorporated has shutdown both retail locations in Times Square. The company has faced significant setbacks in recent months, with their CEO being terminated in November 2019. Multiple locations in North America have been shut down, with executives working to revitalize the brand. However, it should be noted that their subsidiary of Old Navy, has performed better than anticipated throughout the last fifteen months. There could be hope for the Gap brand to become modernized and fashionable throughout the 2020s.
The Six Flags Entertainment Corporation had their shares drop by 19% on Friday, January 17, 2020. This follows after the amusement park confirmed that they’d face revenue declines in the third and fourth quarter of 2020. It’s anticipated that they’ll lose upwards of $10 million in profits, bringing the year-end earnings to $25 million maximum. This is considerably lower than profits earned by SFEC in years past, which follows after North American theme parks continue to experience lower attendance volumes. Seasons pass percentages have been the weakest since 2001.
Six Flags Entertainment Corporation has suffered from unforeseen circumstances. The corporation focused on growing its international investments, specifically in China. Unfortunately, their partnership in china defaulted on its obligations for payment. This caused for Riverside Investment to be sued profusely by Six Flags Entertainment Corporation, with their Chinese parks going into bankruptcy.
Representatives from Six Flags confirmed that the 2019 fourth quarter wouldn’t see any profits or revenue from their Chinese subsidiaries, with international agreements being broken. It’s anticipated that $1 million will be lost from these prior agreements, which they’d hope to offset with increased sales in America. There will also be a dismissal charge of $10 million from the Chinese government, which will avoid any potential litigation moving forward. Recovering from the $11 million lost and lower revenues in America is prompting Six Flags to reformat themselves company-wide.
The growth of international programs was supposed to be the catalyst that saw Six Flags become a multi-billion dollar corporation. That is still possible with new deals in place for Saudi Arabia and Dubai, which would be two locations that could see substantial profits rank in for SFEC. However, Six Flags cannot provide the associated costs for development or license. This extends to the management costs, which will require six flags to inquire additional investors. Subsequently, revenues will become lower. It now becomes a question of brand growth over financial growth for the Six Flags Entertainment Corporation.
Six Flags History
This first iteration of the Six Flags Theme Park began in Arlington, Texas. The pack started construction in 1957 ad opened their doors during 1961. Since that first year, SFEC has seen continued expansion across America, with twenty-six parks maintained in the United States. Collectively, there are more than nine-hundred rides offered by SFEC. To date, their highest rate of revenue was $1.5 billion, with more than fifty thousand employees. It should be noted that throughout the 2000s, this corporation suffered from declining profits but was able to re-invent themselves. It’s expected they’ll do the same thing for a second time.
One of the first questions individuals ask themselves when considering a vacation to Disney World is, which hotel should I stay with? That answer can be challenging with more than twenty-five properties available. This includes notable titles like the Art of Animation Resort, Grand Floridian and The Riviera Resort. Unfortunately, some people maintain a smaller budget and must locate the more affordable hotels. When it applies to affordable hotels, there’s one that’s becoming famous for being the worst. That location is the All-Star Sports Hotel. It features the convenience of a Disney World hotel, with basic amenities and inferior room quality. It’s become hated by visitors, with all the reviews indicating a negative experience.
The All-Star Sports Hotel is located in the Animal Kingdom, with the average nightly price ranging for $160.00 to $200.00. This is an overvalued price-point with the condition of this hotel, which opened in May 1994. Since then there haven’t been any renovations to the lounge areas or its 1900+ rooms throughout ten buildings. Those that attend this hotel receive rooms themed around different sports, ranging from Basketball to Hockey. It seems like something from an 80’s film, with conditions similar to a Motel 6.
One of the most significant shortcomings with the All-Star Sports Hotel is the lack of restaurants. There’s a competent court offered, with cooking conditions being incredibly outdated. Basic food like Pizza, Cheeseburgers and Chicken Tenders are available. When it applies to the bedroom, the only amenities include a bathroom and bed-set. Televisions are outdated from the early 2000s, making them incredibly difficult to use for guests. Overall, the standard experience of this location is considered the worst in Disney World.
The Experience Gets Worse!
Those thinking that this would be bad enough are wrong. The experience with All-Star Sports becomes worse, with travelling times being the longest for Disney World. Guests share a singular bus, which travels between two other resorts under the All-Star classification. This means that wait times for busses average 30+ minutes, with the buss being overcrowded and often exceeding weight limits. It should be noted that All-Star Sports in the furthest hotel from Disney Worlds various theme parks, with it being more than five miles from the Magic Kingdom.
Additionally, the All-Star Busses don’t offer priority access. This means that travelling from the resort to Disney’s kingdoms must be traversed on regularly designated roads. Expect long travelling times, upwards of one hour or more. Subsequently, this means that using the All-Star Sports transportation could take one to two hours to arrive at various destinations. This is in a space less than ten miles.
The Pike Place Market is the largest farm market maintained in North America. It was announced that the oldest newspaper stands located at this market have shut down after four decades. December 31st marked the date that First & Pike News shut down their doors. This comes after the stand’s owner, Lee Lockhart, determined it was the right moment to shutdown. Declining sales in magazines and newspapers resulted in the store experiencing significantly fewer profits every year. When you do the math, the decision becomes pretty simple.
The First & Pike Newsstand used to sell 180 newspapers from around the world, with more than 2000 magazines on the shelves. Before the closing date, that number dropped to 55 papers and 300 magazines. Subsequently, this means sales declined by more than 100% over the last two decades. One item that continually remained popular was the $2.00 pack of Hubba Bubba Bubble Gum, which individuals would consume until reaching the corner wall adjacent to the stand. The Gum Wall has become an essential asset of First & Pike, with Lee Lockhart always finding that to be rather disturbing. Another asset of this vendor was the $1 postcards, which provided directions throughout the Pike Place Market.
Lee contested that there were better products available for sale at the newsstand. This included American novels from Hollywood actors like Adam Driver and Cate Blanchett. Lockhart also maintained classic books from Alfred Hitchcock to Maire Claire. Additional products included small paintings art and historical non-fiction regarding the Pagan culture. The First & Pike newsstand was one of the oddest locations at the market, which made it one of the most fascinating to traverse.
The Amazing Boss
Mr Lockhart was an incredible individual who hasn’t maintained a salary with his business for thirteen years. This man managed his life off of Social Security, while he paid employees working at the store $15.00 per hour. This payment was provided long before it was required with legislation. Additional benefits with working for Lockhart included top of the line health benefits, even with a part-time employee. The humble nature of this environment prompted no cash register, with clerks using pockets on aprons to collect change or cash from consumers. The only kiosk was minimal, located in the back corner with a credit card reader.
This business began after Lockhart got divorced from his first wife, where he moved to Seattle. Weeks after the move, he opened his newspaper stand. His daughter would create makeshift jewellery for a low cost, which quickly made them a famous location at Pike Place Market.