abc200 previously said:



How do you know - do you visit the deserted stores?

The Louis Vuitton handbags etc. seen in airports etc. are probably fake.

http://www.louisvuittonreplicashandbags2u.com/

Maybe 6 5 star hotels in Santo Domingo. I have only visited two.

S.

abc200 previously said:



How do you know - do you visit the deserted stores?

The Louis Vuitton handbags etc. seen in airports etc. are probably fake.

http://www.louisvuittonreplicashandbags2u.com/

S.

guillermone previously said:



ABC sorry to bust your bubble but what you fail to understand is that prior to these multibillion dollar investments in luxury malls and upscale stores, market studies are made to determine the potential success. These companies are well seasoned multinational corporations that know what they are doing. Believe me they are not pouring in millions of dollars worth of money because of their health or to be nice but rather expect a fair return on their money. It is not intended to be a hit or miss propositon. These malls are being built in anticipation of a projected retail boom for the DR.

I remember a similar situation aproximately 20+ years ago in Miami, Florida. Right smack in the middle of a depressed economy shopping malls were popping up all over the place. These malls were like ghost towns, business either ramained stagnant or went from bad to worse, with stores empty most of the year except for seasonal shopping spurts. I was the first one to criticized what I thought to be an over built market of retail space for the demand and thought it was insane. Well how wrong I was. Today those malls are still standing and are alive and well doing thriving business.

I also anticipate the same thing for Sto Dgo. Nevertheless, investments errors can be made and there are unforeseen circumstances beyond control. However, overall prospects look good. We can all have an opinion and talk all we want about what will and can happen. But the only way we can know and be certain is to look at is once again 20 years from now as the only unfailed method to see the future.

abc200 previously said:



Well seasoned multinational corporations go bust as well.
General Growth , founded in 1954? went bankrupt.

http://www.reuters.com/article/2009/04/16/us-generalgrowth-bankruptcy-idUSLG52607220090416

Empty malls do not pay creditors.

SD,s 5 star hotels charge about $100 a night per room. 5 star hotels in London get $500 night..

Harrods has a full department organizing tax refunds for people.

Week-end shopping trip ex. NY.

Business fare $3,000 similar SD/London per person.

Hotel 2 nights per person 5 star SD $100, London $300-500

Shopping $2,000 prices similar luxury goods.

Range of goods available - London , Bangkok etc. superior.

UK visitors get full VAT ( IBIS ) tax refund. Save $400

Car limo with driver, necessary in SD, not in London $150 per person per day.

Night life - very up-market casinos, restaurants in London.

Limited range Santo Domingo.

Historic attractions - limited SD, more in London.

Weather - in winter DR very good.

5 star hotel capacity very limited in SD - few historic hotels.

Punta Cana with better international flights, good 5 star hotels, etc. might be a safer bet for up-market shopping.

Most likely original investors in the shopping malls of 20 years ago in Miami have lost their investment by now.

Omni mall now:

http://www.miamiphotoblog.com/2011/08/omni-mall-abandoned-with-graffiti/

In the US Amazon is increasing profits, booksellers are going bust, mall owners are struggling.

Even Harrods is going on-line.

http://www.harrods.com/

Yes, luxury stores can be profitable - interesting to see results of SD mall owners. Do the stores there offer international delivery, customer accounts etc. etc. ?

http://www.bloomberg.com/news/2011-10-23/harrods-profit-rose-39-to-108-million-pounds-sunday-times-says.html

14 dead malls listed in Florida.

http://deadmalls.com/features.html#FL

S.


S.

guillermone previously said:



Like I said, everyone makes investment errors, but this fact is true and not even you can deny. The amounts of successes far outweight the number of failures.

Nevertheless, the difference between how you are looking at it and what I state is a matter of how we see things. Is the glass half empty or half full ? We both agree the water is at the half point mark, but we just don't really know which way the flow of water is heading, either up or down. I am going to bet on a positive note.

abc200 previously said:



No, comparatively few medium and large size businesses that were big 40 years or ago are still alive and well now.

Pan Am, AA , Laker and numerous other airlines have collapsed or near. GM, Chrysler etc. have gone down. I prefer to look at the long term successes in an industry, business etc. Even good business can take a wrong turn - Honeywell was nearly sold out. IBM sold off its pc business and much else.

I hold to my opinion that the development of so many up-market shopping malls in SD is a wrong turn for many involved - unless the sole intent is to wash drug money..

Years after bankruptcy Macy with 132+ stores only had earnings slightly more than Harrods.
Harrods only has one million square ft.

S.

guillermone previously said:



True but in general nothing is eternal in our material world. Nevertheless, the companies you mentioned were once extremely successful and had their glory days eventhough it later went bust. In the mean time, while things were good, they were rolling in the dough and it lasted a long time until unforeseen circumstances changed their fate. All businesses have an up and down cycles or perhaps no cylces at all. But hey..... that's business.

Nevertheless, in this case we need to compare apples-to-apples. What I am noticing and to my surprise just as much it is yours, major players are moving in and taking over, a country that onced appeared to have totally bleak future. Do you think they know something we dont?

I mean we can have a KFC or Krisppy Creme go down the drain, but I dont expect everybody else to fail, just because their expansion plans happens to involve specifically the DR. And if so happens they all disappear for a lack of profitability or what ever, by the time they are gone, I am quite sure they have recouped their investments and then some.

abc200 previously said:



Are you sure KFC recouped investment in the DR - is your information different to mine?

Companies cannot afford to ignore trends in fast moving markets. Investors have made money in Spirit and lost in AA recently.

Also investors can be persuaded by hype. My argument remains the same - with a $7k average annual income for DR employees and limited upper class tourist hotels in the capital there are too many malls and many will fail real early.
Prestige lost $30 M in DR KFC quite quickly.
http://www.trinidadexpress.com/business/Prestige_selling_KFC_in_Dominican_Republic-147263135.html

S.