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Retailer Bust Sweepstake


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Game, Homebase,Argos,Wickes,Staples,footlocker,whsmiths.

Good call on WHSmiths.

Look at its core businesses:

Books: being replaced by e-books bought online.

Music: see HMV.

Stationery: serious buyers buy online or from specialists; casual buyers go to Tesco.

What's left? Basically a glorified newsagents in premises 20x the size that they actually need.

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Could be French Connection, or more likely Thorntons.

"Shares in chocolatier Thorntons have fallen 7% and fashion chain French Connection 11% after both reported disappointing sales figures."

http://www.bbc.co.uk/news/business-21043359

Thorntons:

"

Sales at its own-name stores were down 9%, in large part due to the closure of 27 of its stores over the last 12 months, while sales at franchised stores were down 27%, mainly because its major franchisee went into administration last year."

FC:

"At French Connection, like-for-like sales in the 24 weeks to 12 January - which exclude the effect of newly opened stores - were reported to have fallen by 2.9% from a year earlier, of which 1.9 percentage points were due to the late start of its sale, the firm claimed.

The fashion retailer said it expected to report a loss before tax and exceptional items of £7.5m-8m for its financial year, which finishes at the end of this month."

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I think bathstore would be a contender. Large stores, high rent and how often do you buy a new bathroom suite. They seem to be having a massive 50% off sale at the moment plus years of interest free credit and the company was sold by Wolseley to a new LLP last year for 15m and has a T/O of 66m in 9 mths to april 2012

the Bathstore in Lyndhurst, was a small shop which closed about 2 months ago.

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Smith's, though I would imagine they have a hard core of loyal probably elderly customers (like my mum).

Coffee chains will eventually decline, but it will take a few more years of austerity for people to work out they are a rip off. IMO they will eventually go the way of McDonalds. In the 80s that was a 'cool' place for urban trendoids to hang out in, but how many of the Ipodders would do that now?

Somebody mentioned Oxfam. I wonder if charity shops might be in a bit of a bubble. Loads have opened in recent years and there is only a finite number of donated items they can receive, which will go down anyway as people buy less, keep things longer and use Ebay more. Many of them, such as Sue Ryder, are selling more and more new items but I think there is a legal limit on how much new stuff they can sell to keep their tax breaks. If they lose their cheap rents and tax breaks they will definitely go under.

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Sony shops in the midlands gone today

http://www.bbc.co.uk/news/uk-england-21039006

"n East Midlands company that has been trading for 25 years has gone into administration.

Raresupply Limited, which trades under the name Sony Centre, employs 22 people and has branches in Derby, Nottingham, Lincoln and Leicester.

The stores, which sold computers and TVs, have closed down and the staff have been made redundant."

I was thinking about what would be next when I walked around town yesterday, pretty much everything eventually.

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My monies on DFS.

Even during the boom years my local store was always empty, I cant see their over priced 'on sale' furniture selling well this year especially with the general public finally cottoning onto debt de leveraging therefore not being hood winked by the 'buy now repay next decade' sales strategy.

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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.

Just like to say, one of the interviewees on Newsnight said exactly what I said: that is, the mall owners are going to have to take a haircut. Obviously his point was not followed up or discussed any further.....

Coffee shops: some people on here think they are doomed. Don't get me wrong, I hope they are. BUT, going by the Newsnight "experts" last night, coffee shops and related social experiences are the bright hope for the high street. The message is, straight retailing is dead, you have to sell your customers a coffee and some street theatre to go with their trincket. Let's see...

Anyhow, if the water monopolies own many of these premises, the retail future might not be as bleak as we presume. All they need to do is sell at a big loss and put up our water bills to make up for it. At a certain low level of rent, a B&M shop will be able to compete with internet sellers.

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Bathstore and Sony Centres are mostly franchises so the odd one goes bump all the time as the franchisee can't keep up with rent, rates, salaries and handing over 10/20% of turnover to a central leech. Some McDonalds are franchises as well.

As mentioned earlier, French Connection looking ropey and all the publicity from the "****" advertising seems to have petered out now.

http://www.managementtoday.co.uk/news/1167123/dark-days-french-connection-big-loss-expected/

Article again blames online sales competitors rather than high rents and poor management (despite clearly stating in the article that the management decision to start discounting late caused much of the disappointing sales figures). Shares down 11%, second year of losses, not trendy anymore.

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Good call on WHSmiths.

Look at its core businesses:

Books: being replaced by e-books bought online.

Music: see HMV.

Stationery: serious buyers buy online or from specialists; casual buyers go to Tesco.

What's left? Basically a glorified newsagents in premises 20x the size that they actually need.

WHSmith would likely outlast practically all the retailers mentioned in this thread,it might be c@rp but its just about the best run retailer in the UK from a financial perspective

Edited by Kandinski
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Richer Sounds.

Too small, too specialist and too expensive.

I think they have a great niche. Decent quality, genuinely audiophile equipment at often the best prices (but not the ridiculous high end stuff you need a mortgage for!) They have physical stores where you can listen & compare (essential for this sort of thing) and they are generally not right in the most expensive town centre locations. The ones I've been to have parking, knowledgable staff & good service. I hope if anyone survives it's this type of place.

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Homebase possibly. Like a brainwashed consumer I still go there automatically for my random last minute DIY supplies (sash window lock last time) only to find they almost never have what I need. Very poor stock control in massive stores. I then remember I have the most incredible independent hardware store round the corner from me (on Moorland Road in Bath).

They have a tiny shop crammed floor to ceiling in a reasonably logical fashion with everything you could possibly need. It is truly amazing - and the staff are practical, knowledgable & know exactly where everything is. They have numerous types of batteries - where homebase have a terrible selection & they had several types of sash locks in different finishes whereas homebase had none. Incredibly stupid of homebase considering many houses in Bath have sash windows.

I hope that these small stores do well, whatever happens to the giants. I for one seem to have eventually learnt my lesson after many wasted trips & I now go straight to the independent shop.

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I think they have a great niche. Decent quality, genuinely audiophile equipment at often the best prices (but not the ridiculous high end stuff you need a mortgage for!) They have physical stores where you can listen & compare (essential for this sort of thing) and they are generally not right in the most expensive town centre locations. The ones I've been to have parking, knowledgable staff & good service. I hope if anyone survives it's this type of place.

Last time I went into one was 3-4 years ago. Admittedly, it was just after Christmas so there were throngs of shoppers around anticipating a 'sales' bargain. Struggled to find a parking space and shuffled through the crowds to get get to the shop. After waiting more than 10 minutes in the packed store I finally managed to get a word with one of the staff about some gear (an amplifier) that they had advertised and was told that they had none in stock,despite it being advertised as available. They couldn't give me any idea about when they were getting any more in either and weren't willing to phone their distributor to find out.

Struggled home through the crowds and sat down at my PC and got on the internet. Bought it off either Amazon or Play (can't remember) for a better price than Richer had it at and it was delivered to my door 2 days later. Haven't seen any point in even going near Richer again since. This is why I have more or less given up on high street/retail park box shifters.

I did recently try a PC World for a computer mouse that I was looking for as their online system said they had it in stock and ready for store collection and fancied having it without the wait for an online order. Got my confirmation back from the system that I had the item reserved and headed to the store the next morning (I'd ordered in the evening) to find after waiting 10 minutes at the collection desk and then another 10 minutes while they looked for it, that in fact they didn't have any in stock at all apart from a non-functional display item. Not the first time I've had issues with instore pick-up. Lesson learned - went home, onto Amazon and had it a few days later for a couple of quid less than PC World were looking.

Really, unless you absolutely must have something right now, I can't see that any of the electronics/computer retailers can compete with online. In-store pickup seems like a good compromise and a selling point for the physical shop but the only store that does it with any consistency is Argos.

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I hope that these small stores do well, whatever happens to the giants. I for one seem to have eventually learnt my lesson after many wasted trips & I now go straight to the independent shop.

I went to Homebase the other day for a new flush mechanism to fit in an existing cistern. I got told that not only did they not have any flush mechanisms, I couldn't buy the whole cistern. But they could sell me a whole toilet £99. Like you I went to my local independant and they sold me a mechanism for £15.

I'll stick to the independants from now on.

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Sky Sources: Blockbuster UK to appoint administrators with potential 4,000 job losses

Who got that right...lol.

Me!!!!

this is for UK retailers, so who is going to call in the admisintrators next?

my money is on Blockbusters

As the very first post of this thread. i never get a prediction right. nothing online as of yet

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Really, unless you absolutely must have something right now, I can't see that any of the electronics/computer retailers can compete with online. In-store pickup seems like a good compromise and a selling point for the physical shop but the only store that does it with any consistency is Argos.

The main difference with richer sounds is the 5 year guarantee at 10% of cost, which you won't find elsewhere. Even if you don't buy there you can use it as a price match to JL.

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  • 415 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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