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NYC rent is too damn high for Geoffrey

Discussion in 'Sports and News' started by Evil ... Thy name is Orville Redenbacher!!, Dec 31, 2015.

  1. Toys R Us closes iconic Times Square store after rent rose to $42 million. A year.

    Toys R Us closes Times Square store after rent rose by five times

    1: This has to be a misprint, right?
    2: Is it legal? You could buy the place for $42 million. Or even double that.
    3: Holy shit!
  2. YankeeFan

    YankeeFan Well-Known Member

    Is it legal? LOL.
    BurnsWhenIPee likes this.
  3. Riptide

    Riptide Well-Known Member

    So, doing the math, and just to pay for the rent alone,
    the store would need sales of $4,794.52 an hour, 24/6/365.

    Can't imagine what it would take to earn a profit in that scenario.
  4. Huggy

    Huggy Well-Known Member

    JR wonders how Olive Garden survives in Times Square. Charging $400 for NYE dinner might help.
    HC likes this.
  5. doctorquant

    doctorquant Well-Known Member

    Retail toy markup varies substantially across items, but as I understand it 300%'s a good cocktail-napkin number. So your $5 (wholesale) item needs to fetch $15 at retail. Out of that $10 margin, you've got to cover everything ... wages, profits, rent, other overhead, etc., etc. So hourly rent of $4,800 would have to come out of a shitpile more hourly revenue (assuming a minimally profitable setup).
  6. LongTimeListener

    LongTimeListener Well-Known Member

    That Toys R Us store is so iconic that it opened in 2001.
  7. doctorquant

    doctorquant Well-Known Member

    Then it must be saved! The very fabric of the city is in peril!
  8. Huggy

    Huggy Well-Known Member

    On our trips to NYC we found it handy for one thing that is in short supply in that area: bathrooms.
  9. YankeeFan

    YankeeFan Well-Known Member

    And the same family has owned the building since it was built in the 1930s.
  10. Riptide

    Riptide Well-Known Member

    Right. And double that figure if the store is open 12 hours a day.
    And that's before the cost of the products, plus payroll, electricity, taxes, etc., etc.

    Maybe the store was a loss leader for the chain, for good reason. But it's crazy retail math.
  11. doctorquant

    doctorquant Well-Known Member

    I have it on good authority that smallpotatoes was consulted on the decision to locate there ...
    old_tony likes this.
  12. Jake_Taylor

    Jake_Taylor Well-Known Member

    It would be interesting to know how many of the chain stores in Times Square are highly profitable or if they are mostly about having a presence there.
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