New day, new highs, what can slow down this market?
As we embarked on third-quarter earnings there were a number of happenings in the retail industry. Ruby Tuesday Inc. (RT) said it would go private, at the same time Nordstrom Inc. (JWN) - Get Report announced it had cancelled a strategic review that it was likely hoping would lead to such a deal.
Embattled Sears Holdings Corp. (SHLD) said Monday that its largest institutional shareholder, Bruce Berkowitz of Fairholme Capital Management LLC, which owns about 27% of its stock, will leave the retailer's board of directors. His departure from the board will be effective Oct. 31. Sears' stock has fallen by more than 30% since the start of 2017 as the retailer struggles to keep pace with the changing industry.
Meanwhile, Jonathan Heller, a frequent contributor to Real Money, TheStreet's premium publication for traders, weighs in on the Philadelphia beverage tax that kicked in in January and is meant to curb sugar intake. He says that beverage giants Coca-Cola Co. (KO) - Get Report , and PepsiCo Inc. (PEP) - Get Report have reported job losses as a result of declining sales in the city, but that despite some struggles soda buyers have flocked to stores just outside the city-and there are plenty of them-to make their purchases of soda tax free.
Within the city, Pepsi reportedly had stopped shipping two-liter bottles and 12-packs of beverages, instead stocking shelves with one-liter bottles; the logic is smaller units, less tax (although the tax math, 1.5 cents per ounce, still works the same no matter the package size.)
At the same time TheStreet is out with the first stories that are part of our series "Crash of '87 -- TheStreet Special Report," where we take a look at the cause of the 1987 stock market crash, known as Black Monday. We will walk you through the the hottest stories of the day and look forward to what could cause a similar crash in the future. Check back each day this week for new content.
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Photo of the day: Casual dining, slumping profits
The casual dining space is in a state of flux, as fast casual restaurants like Chipotle Mexican Grille Inc. (CMG) - Get Report and Shake Shack (SHAK) - Get Report take market share from legacy players such as TGI Friday's and Ruby Tuesday. Friday's is already private and on Monday, Ruby Tuesday joined them, announcing that private equity firm NRD Capital would buy it in a $335 million deal. The industry hit a high in the 80s and 90s as popular appendages to malls and shopping centers. The industry was parodied in the 1999 movie from 21st Century Fox (FOXA) - Get Report "Office Space" where Jennifer Aniston's character is employed by "Chachkies" and ridiculed for her lack of flair. Despite the attention to detail (and 37 pieces of flair) of even great managers like Stan (pictured above) it's hard to imagine that Chachkies would have been able to stave off the effects of the general industry decline.
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