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Last Throw Of The Dice For Stores: Big High Street Names 'could Collapse Within Days


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Front page of Indie offshoot 'i' says HMV in trouble. No surprises.

I popped into Solihull yesterday (early - needed a few bits from Mossisons) but had a quick mooch around the shops - HMV wasn't open at 9.30 when I walked passed. I normally get something from HMV in the sale - all the other shops that I went by were open. Not saying they're about to close but sounds like the staff couldn't get there in time to open up. Solihull was pretty quiet although I left at 10 ish.

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numbers may be up, sure - heavier discounting, lack of cold weather disruption endured last year, etc. BUT they appear to be discounting so hard 'because they have to' that their margins must be taking one hell of a whacking. What's the point of increasing sales at the expense of profits?

Cash flow and stock clearance. It takes time to adjust stock levels to reflect trading conditions. If the shelves look empty that in itself dissuades shoppers from buying. There are times when increasing volumes even if it means selling at cost becomes necessary. Of course it can only be a short term expedient.

Some times the manufacturers share the pain with the retailers as well. And not just the Chinese, funnily enough Europeans and Americans also manufacture goods.

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Retailers 'face tough time' as consumers cut back

The UK retail sector faces another tough year in 2012 as consumers continue to cut back, according to a report by Verdict Research.

It claims consumer spending will grow by 1.2% next year, the third slowest rate in 40 years.

Food sales are expected to rise strongly, the report claims, as more consumers will cut back on going out.

It comes as insolvency firm Begbies Traynor predicted that the retail sector would struggle most in 2012.

Maureen Hinton of Verdict said: "The first three months of 2012 will be the most difficult period for retailers as consumers cut back severely after the expensive Christmas period.

Still I'm sure we aren't at the end of the boom...

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Can't comment about who is about to go to the wall (and if) soon, but how sad are the pics in the article. What a f*cking life these people have, it is unreal. What is wrong with people in this country?

Completely lost all sight of any way of gaining satisfaction, other than purchasing and owning tat

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According to my favourite Newspaper the figure is now £4.3 billion spent at the sales. How much I wonder was the percentage spent on CCs to repay over a long period plus interest, and how much will eventually be written off by the CCCs as losses.

To be quite honest it is b****y frightening. :(

Read

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...shopping is a social event for some, the highlight of their week....when they are told a sale means they will get something for less they believe it. ;)

Its funny some of the tactics that shops use..... I went in Tesco yesterday and they were selling the ordinary tube Pringles at half price ONLY £2.59!!!

Since when were they ever £5.18 per box?

I suppose they are relying on the 'wow half price, must stock up' brigade!

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The week before Christmas Tesco were selling tins of Roses, Quality Street, and Celebrations for £5 at half price they claimed, Christmas week they went to £5.99p, on Wednesday after Christmas they reverted back to £5, the same display of stock. The b******s are taking the p**s. :angry:

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The week before Christmas Tesco were selling tins of Roses, Quality Street, and Celebrations for £5 at half price they claimed, Christmas week they went to £5.99p, on Wednesday after Christmas they reverted back to £5, the same display of stock. The b******s are taking the p**s. :angry:

Thank goodness that sort of dodginess is bound to be covered by one of the vigilant Trade Associations and Regulatory Bodies etc in the link below.

http://www.britishservices.co.uk/associations.htm

:rolleyes:

They can't ALL be just jobs for the boys :lol::lol:

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http://www.bbc.co.uk/news/uk-scotland-scotland-business-16350067

D2 Jeans goes into administration

Continue reading the main storyStore chain D2 Jeans has gone into administration, making 200 staff redundant and putting hundreds more jobs at risk.

Administrators closed 19 stores and laid off the shop workers at the Ayrshire-based firm.

The remaining 28 stores are being run as a going concern while administrators seek a buyer.

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According to my favourite Newspaper the figure is now £4.3 billion spent at the sales. How much I wonder was the percentage spent on CCs to repay over a long period plus interest, and how much will eventually be written off by the CCCs as losses.

To be quite honest it is b****y frightening. :(

Read

They said in the news there is a big increase of people taking out 'Debt Relief Orders' designed for unsecured debt of under £15k...

news link

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Its funny some of the tactics that shops use..... I went in Tesco yesterday and they were selling the ordinary tube Pringles at half price ONLY £2.59!!!

Since when were they ever £5.18 per box?

I suppose they are relying on the 'wow half price, must stock up' brigade!

....I saw an offer like that but it was...Two for the price of one £2.59 each....no one in their right mind would buy only one for £2.59.

No what they do is double the price from £1.30 a packet and make you think you are getting one packet FREE, making you buy twice as much as you need....so you don't buy any and save yourself £2.59. :lol:

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Looks like the rumour mill was right this time:

Barratts

D2 Jeans

Any more?

http://www.bloomberg...ken-retail.html

U.K. retail insolvencies may reach the highest level in four years as weak Christmas sales leave chains struggling to meet rent payments due this month, according to restructuring firm AlixPartners LLP.

"We are likely to see a number of retail collapses early in the new year and it could include some much-loved names,"Sanjay Bailur, managing director of the advisory firm's U.K. unit, said in an interview. The outlook is "worse than the last three or four years."

edit: Never heard of them but they've made the news today:

The owner of toy and novelty gift chain Hawkin's Bazaar brand has gone into administration.The Tobar Group employs 380 staff across a network of 65 stores and also sells online and over the phone.

http://www.bbc.co.uk...siness-16366088

Edited by pl1
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The stupidity of retail never fails to amaze me.

For instance

Why put things on display if they are not priced? It's a flat walk away from me and goodbye. Surely the "managers" are aware ?

Another point, most if not all shops have heating and lighting on to the max, this results in a very uncomfortable shop, again I simply walk out..

Also, what has happened to car park pricing recently? it's a serious amount of money now, just to park your over taxed car

My threshold is now down to about 30mins when shopping...

Is it really any wonder they are in trouble?

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When the highstreet collapses, some savy HPCers will could pick up some retail freehold shops for pennies in the pound, and rent them out after the collapse Perhaps the right time will be in about 10 years, when business rates will be forcibly reduced, parking charges abandoned, and employing people will be super cheap. Forget the Wilsons with their piddly 1000 houses, and awkward tenants. Think 1000 shops, with corporate tenants!

The destruction of the highstreet can only be deliberate.

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Some expected numbers

HMV is expected to reveal an 8% like-for-like decline in sales for the period on January 9.

Elsewhere on the high street, Home Retail is forecast to reveal an 8% same-store decline at Argos on January 12 and Mothercare may reveal a 9.2% drop on the same day.

http://www.google.com/hostednews/ukpress/article/ALeqM5i6S-D0vmTXxsw6ctbUUYQQ_20tIg?docId=N0711971325246331759A

Here is also a list of trading update releases

Dates of trading updates confirmed so far are:January 4: Domino's Pizza, Next

January 5: Clinton Cards

January 9: HMV, Morrisons

January 10: Debenhams, Dunelm, Marks & Spencer, Topps Tiles

January 11: Game, N Brown, Sainsbury's, SuperGroup

January 12: Halfords, Home Retail (Argos, Homebase), JD Sports Fashion, Mothercare, Tesco, Thorntons

January 17: Burberry, Dixons Retail (PC World, Currys)

January 18: JD Wetherspoon

January 19: Associated British Foods (Primark), ASOS

January 20: Retail sales figures for December from Office for National Statistics

January 25: WH Smith

January 31: Carpetright, Ocado

http://www.thisismoney.co.uk/money/news/article-2079848/Next-set-kick-Christmas-shopping-updates-cheerful-tidings.html?ito=feeds-newsxml

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http://www.guardian.co.uk/technology/2012/jan/01/amazon-versus-the-high-street

Amazon v the high street – which would you bet on?

It goes like this: customer comes in and asks to see, say, an expensive camera. Salesperson then spends 15 minutes patiently explaining the camera's features in great detail, after which one of two things happens: either customer says he can get it for £X online, where X is significantly less than the shop price, and departs; or customer simply departs and orders it online.

This has become so annoying that some US photographic stores now charge an "explanation fee" to such unscrupulous customers.

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Went to get some new clothes for work today and I think this is the Christmas when it finally imploded. The sales were phoney, hype to try to get a few gullible souls through the doors. I had a look around Next, Debenhams, Burtons and House of Fraser. The sales in each of those stores are no where as good as last year. And not only that, by my reckoning (and my memory isn't what it used to be) this years discounted price isn't too far off last years full price.

Every shop I went in had overpriced, visibly poorer quality clothes in the sale than last time I went. Any decent stuff was simply full price, and I ain't paying £85 for a pair of trousers for work.

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http://www.guardian.co.uk/technology/2012/jan/01/amazon-versus-the-high-street

Amazon v the high street – which would you bet on?

There are two ways of looking at this. One is to say that competition is always good and more competition is even better. If Jessops, say, can't match, say, the Amazon price, then so much the worse for Jessops and so much the better for us. The other view says that there is more to life – and society – than the near-perfect, frictionless competition that is enabled by the net: jobs for people in their own locality, for example; and the urban vibrancy and sociability that come from having busy shops in proximity to cafes, restaurants etc.

Do I detect the 'Custodians of Our Heritage' card being played? It's certainly worked pretty well in the past for farmers looking to cop a few subsidies. Whether Jessops is or is not an important part of the social fabric of our society that's deserving of a handout is open to debate. However, anyone popping into your average branch looking for objective, informed advice is more than likely going to be sh1t out of luck

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The last time I popped into my local currrys/pc world/comet/John Lewis shop I knew about 16 times more than employees there did. I wouldn't mind the higher price if they offered some knowledge that warranted the 'shop tax' but they don't. At least with Amazon I can sift through customer reviews (planted or otherwise) and reviews elsewhere.

The electronics bazaar is dead, save for apple stores. I'm surprised apple still sell trough third party, a la thorntons.

The only thing aside from food I buy from high street these days are clothes which I still think need a physical presence.

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It is quite simple.

Rents and local wages are too high for British shops and businesses to compete with the global distribution channels of businesses like Amazon.

British shops and businesses will have to continue to close until wages and rents drop to the point where local shops and businesses can compete with the internet.

We have a very, very long way to go but an equilibrium will be found eventually.

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