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Johnny

Hof Chief Warns Of Retail Collapse

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and just think of the impact this will have on consumer confidence when the redundancies are ANNOUNCED!...DON'T THINK ANYBODY WILL BE SPENDING TOO MUCH.

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I've said this before.

Don't worry too much about interest rates.

Even when rates rise, people will eat beans on toast all week before they consider defaulting on their mortgage.

People are amazingly resilient, they will batten down the hatches and stop spending.

The unemployment will get them, and those with high debts and in highly geared positions, who have been reckless over recent years, will go under fast.

When you don't have a job, interest rates don't really matter anymore.

Edited by BandWagon

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BRITAIN is set for a series of large shopping chain collapses, the head of one of the country's biggest department store groups has warned.

Does he have anyone in particular in mind ? He must mean some of the big names.

Maybe when all this is over, we'll be just a nation of Pound shops.

That'll look good for the Inflation Target.

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I though it said 'Hot Chef warns of retail collapse'...

Guess I better get my eyesight tested... Too many lycanthropic transformations...

;)

Edited by werewolves

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I though it said 'Hot Chef warns of retail collapse'...

Guess I better get my eyesight tested... Too many lycanthropic transformations...

;)

Hope theres not a Full Moon Tonight

;)

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Does he have anyone in particular in mind ? He must mean some of the big names.

Maybe when all this is over, we'll be just a nation of Pound shops.

That'll look good for the Inflation Target.

probably going to be some of the " middle of the road" operators who are under pressure from the supermarkets.

.....those who cannot absorb serious price cuts are in real trouble this year.

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The bad news is starting to gather momentum for the retail sector now.

An article in thisismoney.co.uk today - HoF chief warns of retail collapse.

BRITAIN is set for a series of large shopping chain collapses, the head of one of the country's biggest department store groups has warned.

http://www.thisismoney.co.uk/news/article....90&in_page_id=2

;)

you know i struggle to believe a lot of this.

how can sales declines of a few % cause such a headache? is everyone really sailing so close to the wind? if so, then how come they can bank roll such ENORMOUS quantities to all their CEO's and the rest of the hand-shaking brigade?

(excuse my jealousy at never making it to hand-shaking brigade status :) )

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you know i struggle to believe a lot of this.

how can sales declines of a few % cause such a headache? is everyone really sailing so close to the wind? if so, then how come they can bank roll such ENORMOUS quantities to all their CEO's and the rest of the hand-shaking brigade?

(excuse my jealousy at never making it to hand-shaking brigade status :) )

In the same way that a BTL idiot with an 85% mortgage will see a 100% loss if prices fall 15%.

Anyone on here with costing experience want to give us the nitty gritty?

Edited by BandWagon

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In the same way that a BTL idiot with an 85% mortgage will see a 100% loss if prices fall 15%.

Anyone on here with costing experience want to give us the nitty gritty?

don't have experience with the overall running of a retailer but here's the basics.

suppliers prices rising=extra cost

consumer demand waning=lower profit

shipping costs=extra cost of fuel

heating/lighting=extra cost as utility bills rise

so much higher cost with less spare money to service it with.

that's before things like rent and other overheads get counted.

now add to that a bunch of bondholders who want interest on the money(gearing) they lent you,and shareholders who want more profit than last year(and better dividends)

if you can't achieve it,you will be ordered to close less profitable operations.

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you know i struggle to believe a lot of this.

how can sales declines of a few % cause such a headache? is everyone really sailing so close to the wind? if so, then how come they can bank roll such ENORMOUS quantities to all their CEO's and the rest of the hand-shaking brigade?

(excuse my jealousy at never making it to hand-shaking brigade status :) )

I've been thinking this too. Why after several years of good sales on the back of the UK's retail spending binge are the high street retailers so worried?

Did they believe the spending spree would go on forever?

Have they geared themselves up to the max like BTL'ers?

Is this just hot air from the retailers trying to convince the BoE to drop IR's in hope to eek out the last few pounds from the consumer?

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The bad news is starting to gather momentum for the retail sector now.

An article in thisismoney.co.uk today - HoF chief warns of retail collapse.

And consider this:

Arcadia nets Philip Green £1.2bn , BBC, 20/10/2005

"His £1bn-plus windfall comes only three years after Philip Green paid £850m for Arcadia. He has been described as having "the midas touch". "

Let me rephrase this: Green bought Arcadia for 850m three years ago. He has now remortgaged the company having cleared the debt and extracted £1200m. That is now in his bank account. The debt created by thi swithdrawl of equity belongs to the company, in turn owned by the shareholders. However, the shares he owns are limited liability, meaning if Arcadia now goes bust, his shares are worth nothing but crucially he keeps the £1200m.

He added this:

""The cost of doing business is going up," Mr Green told the BBC.

He said business for Britain's clothing retailers was tough due do a combination of the economy and the weather.

And he pointed out that "some clothing is at the same price it was 10 years ago".

As they used to say on yes minister " a more cynical man than I might be tempted to say..." he's cashed in his chips.

Edited by Sledgehead

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And consider this:

Arcadia nets Philip Green £1.2bn , BBC, 20/10/2005

"His £1bn-plus windfall comes only three years after Philip Green paid £850m for Arcadia. He has been described as having "the midas touch". "

Let me rephrase this: Green bought Arcadia for 850m three years ago. He has now remortgaged the company having cleared the debt and extracted £1200m. That is now in his bank account. The debt created by thi swithdrawl of equity belongs to the company, in turn owned by the shareholders. However, the shares he owns are limited liability, meaning if Arcadia now goes bust, his shares are worth nothing but crucially he keeps the £1200m.

He added this:

""The cost of doing business is going up," Mr Green told the BBC.

He said business for Britain's clothing retailers was tough due do a combination of the economy and the weather.

And he pointed out that "some clothing is at the same price it was 10 years ago".

As they used to say on yes minister " a more cynical man than I might be tempted to say..." he's cashed in his chips.

:o that's disgusting, i didnt know that could happen.

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Guest Bart of Darkness
He said business for Britain's clothing retailers was tough due do a combination of the economy and the weather.

The weather? :blink:

Has there been more of it this year or something?

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Guest Bart of Darkness

So what woiuld a wise and sensible government be doing now?

Encouraging manufacturing jobs? Trying to bring jobs and investment in other sectors?

I dunno. Personally, if I were TB or GB I'd be packing my suitcases with gold and fleeing to South America.

Mire hacia fuera, él es esos perdedores ingleses estúpidos!

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And consider this:

Let me rephrase this: Green bought Arcadia for 850m three years ago. He has now remortgaged the company having cleared the debt and extracted £1200m. That is now in his bank account. The debt created by thi swithdrawl of equity belongs to the company, in turn owned by the shareholders. However, the shares he owns are limited liability, meaning if Arcadia now goes bust, his shares are worth nothing but crucially he keeps the £1200m.

i distinctly remember a link from this site to "the times" a few months ago where the journo. said he has spoken to a major UK retailer who had supposidely sold all of his UK property and shares as he was expecting a major crash. :(

it was said that the retailer in question was phillip green.

you don't get to be a billionare by being an idiot. :)

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:o that's disgusting, i didnt know that could happen.

I disagree - I think it is a fantastic thing. This man creates wealth where others see no value - he invests in "people" businesses that affect lives (not just financial products/jiggery pokery like banks or a Soros in currencies) and turns them around. Whilst making his fortune he has also safeguarded many, many thousands of jobs in BHS, Burton, Top Shop, Wallis etc over the last few years when other investors (including our often lamentably inactive and conservative pension fund managers) were willing to abandon them to their fate (some could easily have gone bust given the state they were in).

The best thing is he will use the money to invest again in the retail sector - he is a serial trader - the question we should be asking ourselves is why over the last few years have so many of the talented entrepreneurs/traders/businessmen moved to acquire and take public companies private ? If this was a PLC, Green would have had a fat salary, £10 million+ in stock options and the investors (eg pension funds, investment funds (ie you and me) would have had the £1.2Billion). Reason: too much regulatory interference, political and media attention and lack of freedom. Yes he has had some luck but he is shrewd and brave. We used to celebrate people like him, (Branson, Roddick, Sugar) - what happened?

Edited by Tempest

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:o that's disgusting, i didnt know that could happen.

It can happen because Arcadia is a private company that Phillip Green's wife owns 92 per cent of, and she is based abroad - so sorry Gordon, no tax for you.

If this was a public company, there is no way he could do this. Still, Arcadia was a basket case when PG bought it for £10m in 2002. He's done a fantastic job turning it around.

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These large companies have their own greed to blame for the slowdown, they have slashed margins and starved the small business of what little trade was left.

They work on a 7% margin as opposed to 20% a few years ago, which means that you have to sell a lot of crap in order to pay the bills. This is fine while the consumer is spending on credit but now that has stopped these large companies are finding themselves in an impossible situation of having to sell at even lower margins by having year on sales.

I really feel for the people who are going to lose their jobs in the new year as I predict a very gloomy picture for most high street chains this Christmas. The small business has virtually been forced from the high street and young entrepeneurs have turned to ebay in order to make a living.

I predict 2 million on the dole by the spring and a very empty looking high street.

:(

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It can happen because Arcadia is a private company that Phillip Green's wife owns 92 per cent of, and she is based abroad - so sorry Gordon, no tax for you.

If this was a public company, there is no way he could do this. Still, Arcadia was a basket case when PG bought it for £10m in 2002. He's done a fantastic job turning it around.

Greed in this country is beyond me, why on earth would anyone want a billion a year pay packet and not want to pay tax. It's the fat cats in this country that are causing all the problems, thats 2 billion pounds of consumers money that has left this country. No doubt that all the products in his shops are also made in China....more £££ out of the UK

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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