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Major High Street Retailer Issues Report Today

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http://www.iii.co.uk/news/?type=afxnews&ar...&action=article

LONDON (AFX) - Chocolate maker and retailer Thorntons PLC said conditions on the British high street were among the
worst in living memory
as it revealed a four pct decline in first-half profit.
"It's absolutely awful out there... I don't think it's a rosy picture for the next year or two. Every retailer should take a very prudent view of sales going forward and match their costs accordingly," chief executive Peter Burdon told AFX.

Does this reflect optimism that the economy is going to enjoy a sustained bounce with houses "flying of the shelves" as Rightmove claims?

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Where one used to take choccies to dinner parties, it is now considered far more polite to turn up with several lines of coke.

Thorntons need to enter this market before they get left off the ladder.

btp

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Thorntons mistake was to go down market and start selling to Woolworths (where Ferro Rocher is the height of sophistication for the average woolies punter). And it's not like there aren't plenty of nice organic handmade alternatives to Thorntons nowadays either (should have bought Green and Blacks while they had the chance I reckon).

Loads of unsold Thorntons choccies in my local woolies around Christmas/New Year this year.

Personally it's G&B or Lidl's Lindt(?) dark as you like chocolate for me.

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Generally thorntons - very expensive chocolates at a time when people have no spare money (i.e. debt, fuel prices, energy prices, mortgage repayments, rent, council tax blah blah)

So these high end retailers might as well give up now.

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In a number of shopping places I frequent (Cambridge, milton Keynes,etc) there has been a new chocolate shop opened (looks like a chain) called Chocolate Heaven (I think) ... so maybe people have drifted to this new shop instead of Thorntons which is also in said shopping place.

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It’s a lot worse than they are admitting, the retail sector is dead.

For the last 5 years the consumer has borrowed – borrowed & borrowed some more.

But the word is that the banks are now saying NO – and by the way were lowering your

Overdraft. ect

BANKS WILL GIVE YOU AN UMBERELLA ON A SUNNY DAY…..

BUT AS SOON AS IT STARTS TO RAIN – THEY WANT IT BACK.

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Thorntons may have messed up their business strategy but the high street is in big trouble.

A little bit of annecdotal:

Was wandering around Derby town centre a couple of weeks ago and quite a few of the independant clothing boutiques still had 50% sales on (well, I presumed they were carrying on from January - dont know Derby that well and rarely go)

Took a stroll down the high street in Chiswick at the weekend (used to live there before moving back to the midlands) and its a similar situation - expensive, independant clothing shops with big sales. Chiswick is well minted as well and if shops are stuggling there then there are problems.

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Lets get real though. What they are saying is profits are down 4%.

But they are still turning a profit!! If they are still turning a profit things aint that bad.

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There are signs that the contagious stupidity which has affect most of the nation for the last 10 years is beginning to weaken. People are actually saving some of their wages now instead of p1$$ing it up the wall on shiny things which they hope are more shiny than their friend's ones.

scotsman article

"A REVIVAL in the savings market has led to the highest new-year building society inflows in five years, as consumers tighten their belts.

Building societies last month enjoyed their highest net receipts for January since 2001, figures from the Building Societies Association (BSA) showed.

Inflows surged to £212 million, as consumers squirrelled away their cash - a far cry from the net withdrawals of £299m experienced during the same month last year."

""Normally, credit card repayments and working off the Christmas 'financial hangover' result in outflows from savings accounts in January," said Adrian Coles, director-general of the BSA.

"The figures confirm the emerging trend of strong savings which became apparent in the second half of 2005."

The statistics also pointed to strong inflows into cash-based individual savings accounts (ISAs). "

is debt becoming a bad thing again???

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hold on, hold on. 4% decline in profits - that's nothing - what on earth are they moaning about - the fact that they haven't made mega-squillions - greed, pure greed. if 4% is the worst ever, their margins must be so, so tight.

Edited by benjamin

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Thorntons mistake was to go down market and start selling to Woolworths (where Ferro Rocher is the height of sophistication for the average woolies punter). And it's not like there aren't plenty of nice organic handmade alternatives to Thorntons nowadays either (should have bought Green and Blacks while they had the chance I reckon).

Loads of unsold Thorntons choccies in my local woolies around Christmas/New Year this year.

Personally it's G&B or Lidl's Lindt(?) dark as you like chocolate for me.

Thornton's choccies are too dear for what they are!.............Their box standard chocs work out about £10 a pound or £22 a kilo.........And for that kind of money you can get the far superior Lindt and similar.

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Thorntons may have messed up their business strategy but the high street is in big trouble.

A little bit of annecdotal:

Was wandering around Derby town centre a couple of weeks ago and quite a few of the independant clothing boutiques still had 50% sales on (well, I presumed they were carrying on from January - dont know Derby that well and rarely go)

Took a stroll down the high street in Chiswick at the weekend (used to live there before moving back to the midlands) and its a similar situation - expensive, independant clothing shops with big sales. Chiswick is well minted as well and if shops are stuggling there then there are problems.

Bit more anecdotal: I received a letter from Audi yesterday inviting me to particpate in a "private sale" of any Audi model at cost price (except the new A4 R4 with 525 horsepower engine that can keep up with most supercars). Audi have been doing quite well internationally but it seems that the UK car market is in deep trouble.

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In a number of shopping places I frequent (Cambridge, milton Keynes,etc) there has been a new chocolate shop opened (looks like a chain) called Chocolate Heaven (I think) ... so maybe people have drifted to this new shop instead of Thorntons which is also in said shopping place.

Hotel Chocolat - much posher than Thorntons! And they do a mail order internet business too.

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hold on, hold on. 4% decline in profits - that's nothing - what on earth are they moaning about - the fact that they haven't made mega-squillions - greed, pure greed. if 4% is the worst ever, their margins must be so, so tight.

If your profits ore only 5% of your turnover then a 4% loss equates to 80%

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But the word is that the banks are now saying NO – and by the way were lowering your

Overdraft. ect

BANKS WILL GIVE YOU AN UMBERELLA ON A SUNNY DAY…..

BUT AS SOON AS IT STARTS TO RAIN – THEY WANT IT BACK.

That explains the record profit at barclays

Lets get real though. What they are saying is profits are down 4%.

But they are still turning a profit!! If they are still turning a profit things aint that bad.

Trobule is wether it is going to be a trent downwards .....(it will take 25 years to go no profit if this senario continues :))

Edited by CrashCrash

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Where one used to take choccies to dinner parties, it is now considered far more polite to turn up with several lines of coke.

Thorntons need to enter this market before they get left off the ladder.

btp

LOL! Like most funny statements, it has more than a grain of truth in it.

The high street's in great trouble, in fact more than most people know.

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LONDON (AFX) - Chocolate maker and retailer Thorntons PLC said conditions on the British high street were among the
worst in living memory
as it revealed a four pct decline in first-half profit.
Perhaps Ferrero Rocher are back in vogue at the owner occupiers dinner parties?
"Abassador, with this MEWed out cash you are really spoiling us"

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If your profits ore only 5% of your turnover then a 4% loss equates to 80%

maybe if you're talking about profits on margins - but they are not. they are talking about 4% drop on actual profits - look again.

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maybe if you're talking about profits on margins - but they are not. they are talking about 4% drop on actual profits - look again.

Yes the retail sector is doing fine. It is just coming down from the dizzy heights of the last few years.

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Hotel Chocolat - much posher than Thorntons! And they do a mail order internet business too.

Just looking at the Hotel Chocolat leaflet makes me want to lick the page.

I always thought Thorntons were over-rated anyway but then I'm a Cadbury's flake kinda girl.

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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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