Why luggage and liquidation?
Luggage is a horrible thing to sell in a store. Luggage costs a lot to have on the floor and in the back of the store. Retailing luggage has never been a good business, but it can be on the Net. And liquidation, it’s a weird business. Say you have 127 DVD players. Best Buy doesn’t want those. How do you spread that out in stores? It’s not worth the real estate in the printed page. There isn’t any good way to sell them out of one store. It has been a dirty little secret about how [many] liquidation items there are and how hard it is to get rid of [them]. I’ve really never been in a business where I see no natural limits to its growth. It’s a $50 billion market that isn’t able to be serviced well. We did $40 million in sales last year, and expect to do $125 million to $150 million this year, then $500 million the next year. Q: Are you guys profitable? A: We were profitable for one month, then we slipped back below profitability. We have a -5% net margin. We’re comfortable with losing $10
