Description
RiverThis week I will address the cash flow issue that happen to all movie theaters across the nation. When ever COVID-19 had started to come into effect. The audience or customer rate had also took a decline in their businesses. People started to subscribe to Netflix, Hulu, etc.. AMC theater was forced to close its theaters to the public and it brought terrible issue to the their company. AMC went though hundreds of millions each quarter of the fiscal year, making the company worry they were going to run out of cash. Due to the vaccine that had came out this brought hope to the AMC, other theaters, many more businesses out there. The way AMC is fighting back to build up their capital and cash flow, is by raising their ticket prices and concessions cost. In 2021, AMC had an increase in cashflow of 41.73% rather than 2020 being down 282.28%. Being that they were able to fight back and recover from this terrible act, shows that people still loves to go out to the movies no matter the circumstances. Preston-For this weeks discussion, I have consumer apparel/ retail. Within these, the company I chose was Rainbow, it is a clothing retailer for girls and women. I chose this because as a father of 3 girls, stores like this provide a unique way for me to shop for their clothes and get them something different and “fashionable” without breaking the bank.In recent years I have noticed numerous locations closing. in the past 3 duty stations I have been assigned to( Fort Carson, Fort Benning, and Fort Wainwright) 2 locations had closed and one was having its going out of business sale. So in my research I found that due to the nature of retail shopping, they rely on the seasons of shopping to generate enough revenue to sustain them in the times where people are not shopping as much. Those seasons would be back to school, prom/ homecoming, and typically major holidays like Christmas. during this time people will go to their store and purchase clothes and generate enough revenue for the store to be able to afford all out flow of money during the “lean” times. In the era of Amazon, ebay, and online shopping, the “rush” had greatly died down. People can simply shop at their leisure online and have the same product delivered to their door. This creates a cashflow problem for retailers like rainbow who depended on this for sustainment for the year.in 2021 Rainbow used a company calls SoundCommerce to assist in building, retrieving and anylizing its data to transform the retailer and better meet its customer needs with online shopping. Since then the company has seen a 44% compounded annual growth rate and 900% business growth since then. I feel the company successfully handled their cash flow issues.
