Ideapad

Blogging since 1998. By David Wertheimer

Page 19 of 128

Trends versus perspective

November 2: Syms and Filene’s Basement file for bankruptcy.

Company CEO Marcy Syms said in statement the two discount chains were burdened by increasing competition from department stores offering the same brands at similar discounts and by a rising number of private label discounters. She also said there was less overstock for her company to buy as businesses continue to manage their inventory carefully during the tough economy.

September 22: Century 21 opens a 60,000 square foot store on the Upper West Side.

“The expansion is giving another area of the city a chance for everyone to look good all the time,” said Director of Organizational Effectiveness Boyd Howell. … “Brand-driven guests can come in and find their brand instead of having to dig through hoping they’ll find something.”

Mazel tov

I missed the big day last week, but Ideapad turned 13 on November 1.
It isn’t often a blog becomes a bar mitzvah, so let us briefly celebrate the occasion. (I suppose I should really post this on a Saturday.)
For comparison’s sake, this site is thee years older than the original iPod.

Another good guy (you didn’t notice?)

The news was released with little fanfare on a Monday evening: the Yankees came to terms on a contract extension with ace CC Sabathia, averting a crisis and a major free agency story.
The basic news wasn’t all that noteworthy, as Sabathia is a) handsomely paid, b) happy as a Yankee, and c) receiving another twenty-five million dollars to weigh 290 pounds and throw around a baseball. Sabathia, after all, will be receiving $122 million over the next five years–not too shabby.
But subtly, the signing reveals that Sabatha is one of baseball’s good guys, the players that do what’s best for them personally and professionally, and not just financially.
He didn’t force the hand. Sabathia had an opt-out clause in his contract that would have allowed him to seek unmentioned riches on the free-agent market rather than honor the four years remaining in his existing deal. He used this as leverage to get the extension he sought. What he did not do, though, was actually opt out of his contract: he remained with the Yankees, didn’t play competing offers off one another, didn’t push his employer to the brink. He and his agent and the Yankees’ general manager instead said, “Okay, what’s the equitable way to address the situation?” Fine-tuning the existing deal turned out to be the best answer.
He didn’t seek excess. As a free agent, Sabathia could have hunted for longer deals or more money than he ultimately received. Of course, he’s extremely well paid, by the wealthiest team in baseball; but that doesn’t preclude one of the other wealthy or big-spending or splashy teams in the sport giving him even more money to land a prized asset and stick it to the Yanks. But Sabathia didn’t play that hand at all. The value of the additional year on his deal is in line with the ones already in place, and it pays him handsomely, without the free-agency dancing that could have landed him a few million dollars more.
He kept it quiet. The public heard next to nothing about Sabathia’s contract, not from him, at least: lots of media speculation, near-certainty that he’d opt out, then, at deadline, an announcement that a deal was done. Credit goes to the Yankees on this one as well (unlike their handling of the Jeter affair last year) for playing it cool. Ultimately, though, Sabathia looked at his situation, figured it couldn’t get much better, and made a deal that was rational for both sides, and to fans.
This also speaks kindly about agent Brian Peters, who certainly did right by his client, securing him another $25 million while maintaining a positive relationship with the ball club.
Sabathia’s extra year is still great money, and it’s not quite Jered Weaver spurning free agency (and his very powerful agent) to re-sign with the home team below market value. But in some ways it’s not far off. Kudos to Sabathia for admitting his comfort and sticking around.

What I learned today, September 20

McDonald’s currently commands 49.5 percent of the fast-food burger market in the U.S. Burger King and Wendy’s combined grab 26%. The burger wars of a generation ago have largely been won, Shake Shack notwithstanding.
This evolution, by the way, is not unlike what has happened in the cola market, where Coca-Cola possesses nearly twice the market share of Pepsi-Cola, 17% to 9.5%. Pepsi has actually dropped to third place, behind Diet Coke at 9.9%.
Addendum, October 5: the same thing is happening with beer, where #1 seller Bud Light outsells #2 Budweiser by better than a 2-to-1 margin, 19.1% to 8.7%.

Hidden envy

Loved this observation from Felix Salmon regarding New York’s new bike sharing program and the reaction from Sean Sweeny of Soho Alliance:

“DOT and Janette Sadik-Khan’s problem is they say,
‘Here’s what we’re doing, take it or leave it,'” said Sean Sweeney of
the Soho Alliance, a frequent DOT critic. “Instead, it should be,
‘Here’s 20 racks, where would you like them?'” He expressed concern
about whether the stations would be located on too-narrow sidewalks or
in valuable parking spaces or other inopportune locations.

Still, he said it would be nice if done right. “I walk a lot, I’ll
walk from 59th Street downtown,” Mr. Sweeney said. “Let’s say I don’t
want to walk or take the subway, then a bike sounds nice. But it’s still
a matter of giving over public space to a private company, so we have
to be careful.” He added that no stations should be place in Soho.

I love the way that Sweeney starts by implying that he would be happy
to place 20 racks around Soho, underscores that by saying that the
scheme “sounds nice” — and then, at the end, drops the bomb that he’s
already decided that the optimal number of racks in Soho is precisely
zero.

When I was a kid in New Jersey my brother once got a toy (long since forgotten) that enraged me to the point of public complaint. I made a sign and posted it for all the family to see. It read, more or less:

I HATE that [new toy]!
I HATE IT HATE IT HATE IT
I don’t EVER WANT TO SEE IT AGAIN!

P.S. You’d better let me use it!

Felix posits that Sweeney isn’t open to the idea. Quite the contrary: he’s actually jealous, to the point of distraction, and he can’t bring himself to admit it.

I wish I could remember what the toy was. I wonder if I wound up using it at all.

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