CPI Corp. (fka CPICQ)

[oaps222]

Would be accurate information with one addition: the final contract decision is with the host Wal-Mart store, meaning that if the host store has better potential tenants lineup, then it does not renew/revised a contract with the CPI Studio, but close it even if it is a better performer compared with other CPI studios. Contrary, if the host store does not have any potential tenant lineup, then it does not allow CPI to close the studio or reduced hours.

If we take a look at the CPI's major expenses, the labor cost is a killer. If CPI is trying to make average full time hours (let’s say 40 hours) down to around 21 hours, it is a significant saving, and CPI may be able to make profits. Only concern would be whether it can hold those talented SMs, who would be looking for a full time position. Perhaps, CPI is planning to offer a full time position later to those part time SMs (or to those furloughed or laid off SMs), once dust settles down. Just a thought!!