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Snow Storms Could Put 1,000 Firms Out Of Business


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http://www.telegraph.co.uk/topics/weather/8208798/Snow-storms-could-put-1000-firms-out-of-business.html

Almost 1,000 businesses could go bust if the final weekend of Christmas shopping is badly disrupted by snow and ice.

It is feared that shops which have already been severely hit by freezing conditions in January and November will not be able to cope with a third spell of bad weather. Yesterday Amazon became the latest retailer to bring forward its final order deadline for guaranteed Christmas delivery while the shopping channels QVC and Ideal World said they could not guarantee that orders placed now would arrive in time for Christmas.

Douglas McWilliams, the chief executive of the Centre for Economics and Business Research, said: "As many as 800 or 900 businesses could go bankrupt which otherwise wouldn't have, because this is the straw that breaks the camel's back."

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http://www.telegraph.co.uk/topics/weather/8208798/Snow-storms-could-put-1000-firms-out-of-business.html

Almost 1,000 businesses could go bust if the final weekend of Christmas shopping is badly disrupted by snow and ice.

If a couple of disruptive snow days are enough to put them out of business clearly the business model is rubbish.

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If a couple of disruptive snow days are enough to put them out of business clearly the business model is rubbish.

You forgot the three years of very difficult trading conditions preceding them. Many firms are just clinging on by the skin of their teeth now, it only takes one disruption to business to push them under.

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If a couple of disruptive snow days are enough to put them out of business clearly the business model is rubbish.

I don't know about that - most of the major UK retailers do 40% of their trade in the 6 weeks prior to Christmas.

If the likes of M&S, John Lewis, etc, have a bad Christmas then they have the resources and the clout to roll over loans and debt but, as we saw last Christmas, numerous High Street nameswent bust in January. If they had had a good Christmas they may have survived another year.

I suspect only the supermarkets are not dependent upon Christmas for their survival but no doubt dependent upon Christmas to push up their profits and share prices.

I bought a tin of luxury biscuits for £6 in M&S last week - yesterday they were £12. I overheard a sales assistant telling a customer that M&S has been, allegedly, changing the prices of stuff like chocolates, biscuits weekly if not daily and pointed out a big box of chocolates which alternates weekly between full price and half price.

I doubt M&S are alone in doing this as they fight for customers.

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If a couple of disruptive snow days are enough to put them out of business clearly the business model is rubbish.

A business model based upon getting 50% of your sales in the two weeks before Christmas isn't ideal.

But it often works

tim

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I don't know about that - most of the major UK retailers do 40% of their trade in the 6 weeks prior to Christmas.

If the likes of M&S, John Lewis, etc, have a bad Christmas then they have the resources and the clout to roll over loans and debt but, as we saw last Christmas, numerous High Street nameswent bust in January. If they had had a good Christmas they may have survived another year.

I suspect only the supermarkets are not dependent upon Christmas for their survival but no doubt dependent upon Christmas to push up their profits and share prices.

I bought a tin of luxury biscuits for £6 in M&S last week - yesterday they were £12. I overheard a sales assistant telling a customer that M&S has been, allegedly, changing the prices of stuff like chocolates, biscuits weekly if not daily and pointed out a big box of chocolates which alternates weekly between full price and half price.

I doubt M&S are alone in doing this as they fight for customers.

Like I said, if you need to rely on loans and overdrafts etc throughout the year and rely principally on sales in the Christmas period of tat that no one really needs, then you're business model in not sustainable.

It's somewhat like relying on low interest payments to pay you're mortgage, a few sneaky rate raises and it's good night Irene. My sympathies lie elsewhere.

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Like I said, if you need to rely on loans and overdrafts etc throughout the year and rely principally on sales in the Christmas period of tat that no one really needs, then you're business model in not sustainable.

It's somewhat like relying on low interest payments to pay you're mortgage, a few sneaky rate raises and it's good night Irene. My sympathies lie elsewhere.

I think you will find that the vast majority of shops in the UK are totally dependent upon sales in the weeks running up to Christmas and have been so for decades.

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I don't understand the logic here.....just because you know your Christmas gift will arrive late due to uncontrollable weather conditions does that mean you fail to buy a gift?...I think most people would understand that circumstances are beyond anyone's control....they will get it a few days late, so what....better late than never. ;)

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I don't understand the logic here.....just because you know your Christmas gift will arrive late due to uncontrollable weather conditions does that mean you fail to buy a gift?...I think most sensible people would understand that circumstances are beyond anyone's control....they will get it a few days late, so what....better late than never. ;)

Corrected for you.

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I don't understand the logic here.....just because you know your Christmas gift will arrive late due to uncontrollable weather conditions does that mean you fail to buy a gift?...I think most people would understand that circumstances are beyond anyone's control....they will get it a few days late, so what....better late than never. ;)

No, that's too late. In the Hawkwind single "Motorhead", from which Motorhead took their name, Lemmy reminds us that amphetamine sulphate "Goes up like prices at Christmas", not "Goes up like prices in January" ;)

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You forgot the three years of very difficult trading conditions preceding them. Many firms are just clinging on by the skin of their teeth now, it only takes one disruption to business to push them under.

Well, then they deserve to go bust then, if three days of bad weather would tip them over the edge.

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Well, then they deserve to go bust then, if three days of bad weather would tip them over the edge.

Well, when things are in decline, there is always *something* that will eventually tip a business over the edge... Many small businesses bank with the RBS who are just being appallingly greedy and mercenary in their treatment at the mo.

Most businesses are not based on having large amounts of money. In general, they borrow money and business success depends on making more profit than the interest charged on that loan.

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No, that's too late. In the Hawkwind single "Motorhead", from which Motorhead took their name, Lemmy reminds us that amphetamine sulphate "Goes up like prices at Christmas", not "Goes up like prices in January" ;)

Hawkwind are awesome

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http://www.telegraph.co.uk/topics/weather/8208798/Snow-storms-could-put-1000-firms-out-of-business.html

Almost 1,000 businesses could go bust if the final weekend of Christmas shopping is badly disrupted by snow and ice.

But on the other hand many smaller local businesses could benefit from the inability of customers being able to travel long distances to buy things. The toy shop at the end of my road for instance was featured on the news recently and the owner said that sales were up thanks to the snowed in locals chosing to shop there as they were unable to travel to the bigger out of town stores for their shopping/internet orders were not longer being guarenteed.

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I don't understand the logic here.....just because you know your Christmas gift will arrive late due to uncontrollable weather conditions does that mean you fail to buy a gift?...I think most people would understand that circumstances are beyond anyone's control....they will get it a few days late, so what....better late than never. ;)

Or if you're sneaky, don't buy any, say that they are delayed in the post, then get the January sales stuff at 1/2 price. :ph34r:

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