http://www.thedailybeast.com/articles/2015/04/30/will-cvs-rebuild-their-looted-store.html It would be a good time to examine the books of that particular store to see what the profits were and then decide if it were me. Maybe the charity motive would be good publicity for the company?(keep smaller inventory perhaps to reduce risk) The greater community is not represented by the imported, rent a thug, protesters? Or maybe you go to full protection mode and put up bulletproof glass with no entry allowed into the greatly reduced store like you see other convenience stores do in high crime areas?(not saying this location is in that type of area as I don't know it from anywhere else) All transactions happening through the glass box, perhaps with a surcharge added for the increased insurance premiums such a store would have. What is your perspective?
I heard a report this morning that CVS did not want to build a store in that location in the first place but the COB pressured them, gave them big tax credits and other incentives to do so. It is good to see the citizens that didn't loot the store and appreciate it being there trying to help out. I suspect CVS insurance money will probably pay most of the cost to rebuild, if they decide to re-open the store. The pressure on CVS to re-open will be very high IMO. Zork is right, their insurance premiums if they re-open the store will go way up.
No chance would I rebuild that location unless there was some serious tax advantages offered. I will be surprised to see any new businesses move into Baltimore after this incident. They are on the fast track to Detroitville.
I would look at projected sales, increased insurances costs, etc. and make a financial decision. Maybe it is a very profitable store. Maybe its been losing money and this is a great excuse to get rid of it. I don't really think that these riots are a great future indicator of future riots. Much of the LA riot area is a much better place 20 years later.
CVS is probably self insured, so it would come out of their pocket. They run a business. $139 billion in sales and $4.6billion in profit last year. The managers manage for the shareholders, and unless that store was meeting financial goals plus a premium (as determined by the managers) for the added risk and cost to rebuild, it probably won't be rebuilt.
That would certainly increase profit, but the added risk of theft during riots may offset the benefit. CVS quit selling tobacco products last year which dropped the return 8%.
Here is an interesting twist on the commentary surrounding the events from Baltimore: http://www.baltimoresun.com/news/ma...tigates-social-media-gray-20150502-story.html
They didn't want to build there, but damned if Walgreen didn't put a store there across the street, so they HAD TO!
