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Retailer Bust Sweepstake


Monkey

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HOLA441
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HOLA442

Just passed a Sports Direct and, despite all the news stories about how it is benefiting from the competition failing, the windows were covered in absolutely huge floor to top of window 'HUGE REDUCTIONS' posters.

It made me pause and wonder whether it is a candidate for this thread... and now it is...

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HOLA443

When you shop in these malls, most of what you are paying is rent to the mall owner. I should I say the owner of the loan that bought the mall. At some point, as these bankrupcies proceed, the rentals are not going to cover their loan repayments.

So there will be a reset, when the malls have been re-bought at non-delusional prices. It's who can stay in the game long enough for that to happen. I would say Argos can cut down to core presence in non-expensive locations.

Also we have the phenomenon of "key" stores being charged only nominal rents to stay. I've heard this is happening with M&S and Debenhams quite a lot. So they are in a good position.

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HOLA444

When you shop in these malls, most of what you are paying is rent to the mall owner. I should I say the owner of the loan that bought the mall. At some point, as these bankrupcies proceed, the rentals are not going to cover their loan repayments.

So there will be a reset, when the malls have been re-bought at non-delusional prices. It's who can stay in the game long enough for that to happen. I would say Argos can cut down to core presence in non-expensive locations.

Also we have the phenomenon of "key" stores being charged only nominal rents to stay. I've heard this is happening with M&S and Debenhams quite a lot. So they are in a good position.

I did some IT work for a UK water company who, during the boom, had senior management who claimed they were now a property company rather than a company that provided you with clean water and took away your sewage.

Property was sexy. Water was not - and they bought and built shopping malls across the UK and EU.

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As there's no reason to go into town anymore, I think I'll just make a cup of coffee and drink it at home.

We live quite close to the station, and there is a coffee stand there. One of my neighbours goes there to buy coffee several times a day. I can only assume that her kettle (or maybe her brain) is broken.

Also, am I alone in actually preferring the taste of instant coffee over the more pretentious offerings?

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HOLA446

Also, am I alone in actually preferring the taste of instant coffee over the more pretentious offerings?

No. You are not alone. Then there were two.

All we need now is a bald guy in a black outfit, a cool dude and that bloke from Mission Impossible to turn up and we are about to become Starbucks' worst nightmare!

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HOLA447

No. You are not alone. Then there were two.

All we need now is a bald guy in a black outfit, a cool dude and that bloke from Mission Impossible to turn up and we are about to become Starbucks' worst nightmare!

I always carry my flask around with me, you never know when you might need it. ;)

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HOLA448

I always carry my flask around with me, you never know when you might need it. ;)

And how much would it cost to fill that flask at Starbucks prices?

That's coffee equity you've got, right there!

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And how much would it cost to fill that flask at Starbucks prices?

That's coffee equity you've got, right there!

I met a blind date for coffee at Starbucks once - her suggestion. Being a good HPCer I had kept well clear of such places for, oh, forever. I ended up in this long queue out in the street waiting to be served - at which point I should have bought some Starbucks shares - and when I got to pay for the coffee I almost had a fit.

There were people in the queue ahead of me paying between £20 and £30 for what looked like a couple of coffees and a couple of buns/cakes.

Naturally I quickly ditched her as being too rich - ha ha - for me. Better HPCers than I would have gone for the coffee and never returned.

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HOLA4414

My money's on Mothercare.

Passed by their Exeter store on the Thursday before Christmas and it was totally devoid of customers. Always a sure sign that a retailer is struggling.

Can't say I agree.

As a proud parent, it's the obvious place-to-go, unrivalled range, prices are fairly competitive, good staff. They might have over-expanded - you don't need a Mothercare superstore in every small town. I don't know, maybe.

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HOLA4415

I thought Waitrose/John Lewis bought them out?

They sold out as soon as they could. Ocado has run it to saturation in the high end market and finding serving the top of the middle segment less profitable with lots of well publicised operating issues.

The items that should flag up the retailers on death row:

large debts

high rents

Very few assets, as much leased as possible

(Private equity ownership - high debt and less public information on their finances)

As such Ocado ticks 2 boxes, but mothercare ticks all main boxes.

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HOLA4416

My long shot bet: Maplins. (I have no reason to back this up apart from the local Maplins shop moving into a smaller office space just a few months ago). And really, what is their USP? Don't get me wrong I love Maplins, I can walk around for an hour just looking at stuff as the next geek.

The geek appeal is thier USP. What they have done is to do the exact opposite what is considered de-riguer retail chain strategy in the modern world: instead of having a limited range of only most popular product lines, they have specialised in dozens of little niches (cheap-ass disco gear, satelite TV, electronic components etc) and made a great success of it.

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HOLA4417

Even by the standards of the Guardian, this article is remarkable for its narrow-minded metro-elitism.

So when all the shops are closed, and all the cars are banned, loads of independent start-ups are just going to open up spontaneously? That might work in Westerham, Amersham or similar gucci little market towns in the south east's commuter belt but its sure as hell not going to happen in some depressed ex-mill town in the north.

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HOLA4418

http://www.guardian.co.uk/commentisfree/2012/mar/22/british-high-street-dead-lets-celebrate

Even by the standards of the Guardian, this article is remarkable for its narrow-minded metro-elitism.

So when all the shops are closed, and all the cars are banned, loads of independent start-ups are just going to open up spontaneously? That might work in Westerham, Amersham or similar gucci little market towns in the south east's commuter belt but its sure as hell not going to happen in some depressed ex-mill town in the north.

Don't expect much from a Wayne Hemingway article.

Thanks for pointing it out though, as I got curious as to how his Beach Pods were doing, and thought it deserved its own thread :D

They appear to have dropped from £64K to £18K !

http://www.housepricecrash.co.uk/forum/index.php?showtopic=186820&st=0#entry909237530

Edited by Saving For a Space Ship
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HOLA4419

What I find funny is that the Daily Mail has listed Past Times today as a possible future shutdown.

Daily Mail's view on life

http://www.dailymail.co.uk/news/article-2262399/HMV-turns-millions-customers-collapses-administration.html

Where the world got to nearly a year ago

http://www.retail-week.com/property/past-times-disappears-from-high-street-as-all-shops-closed/5034078.article

They do still trade, but its far cheaper to sell tat online than on the high street.

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HOLA4421

When I was at Comet, our new supervisor had joined from Mothercare. Ours is a local, out of town style shop. He said that they were on a £1m a year, 10 year lease. The last tax year, that store made £5,000 profit over that entire year.

I've heard Maplins are on a fairly to very good footing...They were offered Comet, but turned them down...I think they took on a few old outlets though....

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