West Marine Sold (again)

[dlochner]

I find it strange smaller businesses like Defender and Hamilton can afford to print catalogs but giant WM cant.

Not strange at all. The Private Equity Firms cut expenses to increase profits and pay off the heavy debt the firm took on to buy the company. Catalogs go, prices go up, employee expenses are cut meaning lower wages fewer employees, and generally less knowledgeable employees, store clerks, not boaters and fewer stores. In the mean time, high margin flashy products get promoted through sales while low margin and essential products are less available and when they are they are at a premium.

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A newsletter about Wall Street, finance and other stuff.

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Edit: Yep, that is a funky description. But it will take you to a sign up page.

 

[DAVA390]

Pricing reply tan earlier comment, shore power adapter plug 45 bucks at my marina,exact same item 75 at W.M.

 

[DougM]

West Marine has become a joke over the years. While they used to cater at least somewhat to the sailing community, that has largely gone by the wayside, at least where I live. Now, they favor the low end of the power boater population. Even then its insane as to the prices they charge compared to other sources for the same products. It seems like they are deliberately trying to drive themselves out of business.
I don’t live on the west coast, but if I did, I would be more likely to use SBO as a product source.

 

[BigEasy]

Have to admit, the new folks have improved their systems. For years, I have tried to subscribe to West Marine's email list for sales & specials unsuccessfully, even though I have been a WM advantage card member for many years. Tried at the local store and national customer service. Now I get emails almost daily! I selectively purchase from WM on sale items. Just purchased two spray cans of Sailkote (hard to find) and a new Tilley Hat (on sale). Free shipping to a nearby store approximately 25 minute drive. My local store has closed.

 

[Kings Gambit]

Not strange at all. The Private Equity Firms cut expenses to increase profits and pay off the heavy debt the firm took on to buy the company. Catalogs go, prices go up, employee expenses are cut meaning lower wages fewer employees, and generally less knowledgeable employees, store clerks, not boaters and fewer stores. In the mean time, high margin flashy products get promoted through sales while low margin and essential products are less available and when they are they are at a premium.

Just trying to siphon off the remaining net worth of WM at the expense of its one-time endearment to the sailing community before dumping it on someone else?

 

[shemandr]

I admit to some naivety on business at that level but I can't see the profit in buying a business and running it into the ground. Do they have to go to The Wharton School of Business to learn this?
What assets does a retail business have? Inventory, brand name, customer information, computer systems, staff. Most of the WM locations I've been to are leased space - expensive retail space. That's a liability. So the Venture Capitalists reduce inventory, wreck the brand name, and replace the knowledgable staff. What do they have left?
Or is it that WM ran off all the competition and the VC's think they can demand whatever price they want? I don't get it.

 

[Rick Webb]

I suspect the money to be made is not on the buying and selling of the companies but on the selling of interests in the companies bought and sold to investors.

 

[shemandr]

Sometimes I think the deal is where the money is made. It's like all this money is flowing in the trough and everyone connected gets to stick their straw in.
I don't know if anyone remembers the Shoreham nuclear reactor. But it's a case study in how insiders can manipulate the bonding process to their advantage. I don't know if the debt for the building and then decommissioning of the plant has ever been paid off. It has a life of its own. Last I saw it was called a "Regulatory Asset." There are so many lies in those two words.

 

[FastOlson]

You know the weirdness is building up when the staff at WM sends customers over to a nearby small chandler to buy actual boating hardware.... Yeah, that really happens here.
We also buy a Lot of parts from Fisheries out of Seattle, and from England Marine.
WM has transitioned to mostly fishing and waterskiing products. At this point they are a very long way from their origins....
But then, how many here recall that Lands End started out selling sailboat hardware, then also started selling duffle bags, and then............. and then.....

 

[dlochner]

But then, how many here recall that Lands End started out selling sailboat hardware, then also started selling duffle bags, and then............. and then.....

And then Sears bought them...... We all know how that story turned out.