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

[aa3]

I am sure Amazon is chipping into the retail revenues. But I think the catastrophic decline is more that Brits simply do not have the money to spend. With stagnant wages, and rapidly rising cost of living there is little money left over to spend.

You can't get blood from a stone. Honestly Britain is losing our status as a first world nation. In time there will only be the ultra high end retail - for people closely connected to the upper state, and the masses will buy at pound shops and the big boxes. With nothing in between.

[200p]

How about a Internet shopping tax to balance it out a bit. The bricks and mortar retailers and the landlords need to get a big brown envelope ready.

The same of course happened to Japanese car imports years ago.

Edited January 3, 2012 by MrTReturns

[bmf]

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.

I got some stuff from M&S that didn't fit. I had over £100 of trousers picked out. Went to a staff member to ask for the changing rooms: we have no changing rooms open today because our staff are busy in "returns". Hung them back up and left. That's the bar shops have to beat. No wonder people are using the internet.

[LuckyOne]

I am sure Amazon is chipping into the retail revenues. But I think the catastrophic decline is more that Brits simply do not have the money to spend. With stagnant wages, and rapidly rising cost of living there is little money left over to spend.

You can't get blood from a stone. Honestly Britain is losing our status as a first world nation. In time there will only be the ultra high end retail - for people closely connected to the upper state, and the masses will buy at pound shops and the big boxes. With nothing in between.

I agree.

The little bit of money left over has to be stretched as much as possible so people are being more careful about getting the best value for money.

I also agree that Britain is losing its first world status. There are a few pockets of incredible wealth surrounded by vast areas of poverty.

We often talk about the "average" house in the UK relative to average income. The part that surprises me is that more people don't understand just how horrible the "average" house is in comparison to its global peers.

[aa3]

I agree.

The little bit of money left over has to be stretched as much as possible so people are being more careful about getting the best value for money.

I also agree that Britain is losing its first world status. There are a few pockets of incredible wealth surrounded by vast areas of poverty.

We often talk about the "average" house in the UK relative to average income. The part that surprises me is that more people don't understand just how horrible the "average" house is in comparison to its global peers.

One example I heard that is actually frightening is a man was telling me in 1980 he made £4 an hour at his retail job at a lighting store. The apartment he rented cost £125 pounds a month. It took 32 hours of his pre-tax labour to pay for 1 months rent.

Today that same retail job pays maybe £10 an hour, and literally the same apartment rents for over £1,000 a month.

So young adults are crowding in 3 or 4 of them in each apartment. And cutting spending to nothing. The only place they shop at is the big boxes and pound shops.

[Charlie The Tramp Returns]

One example I heard that is actually frightening is a man was telling me in 1980 he made £4 an hour at his retail job at a lighting store. The apartment he rented cost £125 pounds a month. It took 32 hours of his pre-tax labour to pay for 1 months rent.

1980 was the time when things began to change forever and would never be the same again in many ways. Myself the 1950s, 1960s, and 1970s were dream times and please don`t post the political and economic nasties of the 70s as even with those people were happy and had hope and could achieve much if they were willing to work hard and achieve their goals as I did myself.

[OnionTerror]

I'm just about to finish my stint on a crimbo job I'm doing for an electrical retailer... A fellow colleague showed me December 2010's figures compared to December 2011. In 2010, they took £700k, but in 2011, they were "on course" to take £375k...

[billybong]

http://globaleconomicanalysis.blogspot.com/2012/01/major-slowdown-in-global-trade-coming.html

Starting with events in the U.K., the Eurozone, and then on to China and Japan, this post will tie together various idea all suggesting a major slowdown in global trade is on the way.

U.K. Retailers Squeezed to Extinction

Sales reports from retail associations are subject to spin in any direction depending on whether their motive is positive to encourage shopping because "everyone else is", or negative, hoping to get tax breaks or other concessions from politicians.

In this case, the director of the UK's retail federation says retailers face being "squeezed to extinction". Given several retail bankruptcies and more expected, the story rings true.

.....

['Bart']

Myself the 1950s, 1960s, and 1970s were dream times and please don`t post the political and economic nasties of the 70s as even with those people were happy

A New Economics Foundation study named the 1976 as the year we were happiest as a nation.

[Georgia O'Keeffe]

Ah yes - the year of the glorious 'drought' where the Summer went on forever. Cider with Rosie years.

But I would have said the 4th year of junior school was even better - kiss chase in the playground (is that sort of harassment still allowed?) and wall-to-wall street and park football. And snogging with Mandy Bryant in my tent.

(name altered for security )

What was his real name?

[fluffy666]

A New Economics Foundation study named the 1976 as the year we were happiest as a nation.

Unless you were in the top <1%, obviously. In which case you would have still been perfectly well off.. but the kind of people who get into the top <1% don't tend to be content with being very well off.

[The Masked Tulip]

Next sales disappointing - like for like sales this Xmas and last down 2%, share price down 4%.

[Austin Allegro]

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?

Good old 'vibrant' Britain...

[leicestersq]

Ah yes - the year of the glorious 'drought' where the Summer went on forever. Cider with Rosie years.

But I would have said the 4th year of junior school was even better - kiss chase in the playground (is that sort of harassment still allowed?) and wall-to-wall street and park football. And snogging with Mandy Bryant in my tent.

(name altered for security )

On another thread there is a good debate on Global Warming. I remark about it here because 76 was a remarkable summer, and we are told that last year was the second warmest on record in the UK. I dont recall a day last year where it was too warm to sleep with a blanket in summer, and yet in that year, and so many others, that happened night after night. This may have been only the summer period, but the differences in temperatures between a summers day that year and last year were so vast, that I simply find it impossible to believe that last year was anywhere near as warm.

Those who say that our climate is warming up are losing the argument, either because they are recording temperatures in an inconsistent way, or we have become so hardened to warm temperatures that every summers day now seems cold thirty plus years on.

[Austin Allegro]

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?

Good point. I went to a well known London shopping centre after Xmas (I had to buy some Xmas pressies for rellies I wasn't seeing until after the day, so thought I'd grab some bargains). The place was like an oven. Don't they realise that an indoor shopping centre does not really need any heating at all on a mild winter's day? I think the managers just don't realise because they turn up early when the place is unheated, strip off to their bri-nylon short sleeved shirts and have to whack the heating up to full, without realisin g that the public will come in wearing coats (with nowhere to put them) and that they will also generate a huge amount of trapped passive heat from their bodies.

[erat_forte]

Good point. I went to a well known London shopping centre after Xmas (I had to buy some Xmas pressies for rellies I wasn't seeing until after the day, so thought I'd grab some bargains). The place was like an oven. Don't they realise that an indoor shopping centre does not really need any heating at all on a mild winter's day? I think the managers just don't realise because they turn up early when the place is unheated, strip off to their bri-nylon short sleeved shirts and have to whack the heating up to full, without realisin g that the public will come in wearing coats (with nowhere to put them) and that they will also generate a huge amount of trapped passive heat from their bodies.

But then how do you explain the shops blowing hot air our of the doors onto the pavement?

[The Masked Tulip]

Newport's historic Kings Hotel shuts after 200 years

http://www.bbc.co.uk/news/uk-wales-16408350

A 200-year-old hotel in the centre of Newport has closed blaming a "severe" downturn in trade.

The Kings Hotel ceased trading on Tuesday with the loss of 20 permanent jobs.

General manager Maria Thomas said a handful of staff remained and were trying to rearrange wedding bookings.

The hotel had also been a popular music venue and hosted concerts by the singer Van Morrison in its ballroom in the late 1980s and early 1990s.

Other performers included Jerry Lee Lewis.

Ms Thomas, who has worked at the hotel for 20 years, said the recession had led to a downturn in trade at the hotel on High Street.

"I think all the shops closing in Newport city centre haven't helped either," she said.

[AteMoose]

But then how do you explain the shops blowing hot air our of the doors onto the pavement?

You mean an air curtain? a downward curtain of air in front of a door is an energy efficient way of keeping heat inside a room with an open door as it provides an warm wall of air which keeps the rest of the warm air in the room/cold air out

Edited January 4, 2012 by AteMoose

[bogbrush]

Big High Street names 'could collapse within days' despite £2.5billion Boxing Day sales binge

If this happens back to Recession we head at the speed of light.

Why should failing business falling destroy any wealth?

Quite the reverse.

[Bloo Loo]

But then how do you explain the shops blowing hot air our of the doors onto the pavement?

gets chilly customers inside the door.

[LuckyOne]

Why should failing business falling destroy any wealth?

Quite the reverse.

Absolutely. It is just the distribution of the total wealth that changes.

VIs / special interests etc are those who are trying to prevent the redistribution of wealth at the expense of total wealth.

They would be happier with a larger piece of a smaller pie than a wafer thin sliver of a larger pie.

[RichB]

I am sure Amazon is chipping into the retail revenues. But I think the catastrophic decline is more that Brits simply do not have the money to spend. With stagnant wages, and rapidly rising cost of living there is little money left over to spend.

You can't get blood from a stone. Honestly Britain is losing our status as a first world nation. In time there will only be the ultra high end retail - for people closely connected to the upper state, and the masses will buy at pound shops and the big boxes. With nothing in between.

Pretty sure the internet has a large role to play.

I haven't spent time calculating, but I reckon I've spent several grand on stuff online this year, compared to several hundred in shops - exception being Costco

Equally a lot of stuff that I might previously have bought from small shops now often comes from supermarkets - but this is small change. Food is mostly supermarket, or 'out'.

Most shops for me are now effectively show rooms for stuff, if they have what I want... But when they are trying to charge massively over the online price, with _less_ consumer protection, what do they expect?

As long as delivery services are able to keep up - or improve would be better - this will continue as the business models evolve.

Surely the obvious thing to do is have a store which _is_ showroom based, but acts as an affiliate for the etailers, that will also take delivery for you. That way they get to make some cash from the affiliate scheme and the delivery charges, without the overheads of stock control etc.

Might have a bash at a business plan for that actually

[happy_renting]

Phoney sales ... I recently needed an expansion drive quickly , bought one from PC world in November, 3TB for £120, now in the sale a 2TB is 'reduced' from £140 to £120 and in John Lewis it is all 'special purchase' or as it should be labelled 'tat brought in for the sale'.

Western Digital MyBook by any chance? I got a couple of 2Tb ones this summer, one seems to be on the blink already. (Fortunately the second one is for backup of the first one).

BTW I think floods in Thailand damaged some HD manufacturing facilities. This may push prices up in the short term.

[The Masked Tulip]

I think Next are paying the price of not starting their sale until boxing day - IMPO they arrogantly thought they could hold out by, by Christmas Day, what little money there is out there to be spent had already been spent in sales at other traders.

IMPO Next's decision not to start their sale earlier is bad management.

[Ash4781]

I think Next are paying the price of not starting their sale until boxing day - IMPO they arrogantly thought they could hold out by, by Christmas Day, what little money there is out there to be spent had already been spent in sales at other traders.

IMPO Next's decision not to start their sale earlier is bad management.

Next are difficult to analyse. If you look at the analysts reports they are a mixed big.

I don't shop there as their prices seem very high. Whenever I visit the stores they seem near empty but they always seem to generate sales, and profits.