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Woolies To Close 54 Stores This Year

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http://uk.biz.yahoo.com//14062006/94/wooli...ales-slide.html

Wednesday June 14, 10:01 AM

Woolies fails to halt sales slide

Woolworths, the struggling sweets and toys retailer, on Wednesday said sales were continuing to slide in a tough retail environment and struck a gloomy short term outlook for the year.
Like-for-like sales in Woolworths’ retail business, for stores open more than one year, fell 6.7 per cent in the 19 weeks to June 10, the company said in a trading update.
Of this, 0.5 per cent was due to the closure of 54 stores during the period
.
Woolworths is updating its largest stores with a new design which includes internet ordering points.
A similar number of stores will be closed during the second half of the year
.
“The retail environment will continue to remain challenging,” the company said in the statement.
“In the short-term, we expect England’s participation in the World Cup to reduce overall high street footfall.” Shares in Woolworths were largely flat in early trade at 30p

With job losses mounting rapidly the VIs only have low IR to keep HPI forging ahead this year....... :lol:

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They're closing the one in Leicester town centre. That's annoying as for certain types of items Woolies is a reasonable price/quality point.

Billy Shears

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I can never understand how thay keep going. I dosen't matter how many times they try to re-invent themseves, they're still a throwback to the 60's and don't seem to fit into todays retail trade.

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They're closing the one in Leicester town centre. That's annoying as for certain types of items Woolies is a reasonable price/quality point.

Billy Shears

Especially sweets - Fizzy Strawberry Laces are increasingly hard to find!

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http://uk.biz.yahoo.com//14062006/94/wooli...ales-slide.html

Wednesday June 14, 10:01 AM

Woolies fails to halt sales slide

Woolworths, the struggling sweets and toys retailer, on Wednesday said sales were continuing to slide in a tough retail environment and struck a gloomy short term outlook for the year.
Like-for-like sales in Woolworths’ retail business, for stores open more than one year, fell 6.7 per cent in the 19 weeks to June 10, the company said in a trading update.
Of this, 0.5 per cent was due to the closure of 54 stores during the period
.
Woolworths is updating its largest stores with a new design which includes internet ordering points.
A similar number of stores will be closed during the second half of the year
.
“The retail environment will continue to remain challenging,” the company said in the statement.
“In the short-term, we expect England’s participation in the World Cup to reduce overall high street footfall.” Shares in Woolworths were largely flat in early trade at 30p

With job losses mounting rapidly the VIs only have low IR to keep HPI forging ahead this year....... :lol:

Aren't they just realistically addressing the fact that internet buying is increasing & diversifying to encompass this.

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Aren't they just realistically addressing the fact that internet buying is increasing & diversifying to encompass this.

I am sure you are right. Internet is the future for much retail as it is more effcicient in so many ways:

1. Cheaper rent on far less commercial property with out of center locations.

2. Ability to drop ship and avoid costly inventory management

3. Far fewer staff needed

4. Flexible locations

5. More adapable to changing retail trends

6. Grwoing acceptance by a more computer-savvy population.

More to come I am afraid together with a few hundred thousand more job losses as the Internet trade grows. I would invest in UPS etc. as delivery systems should do well in the future.

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I am sure you are right. Internet is the future for much retail as it is more effcicient in so many ways:

1. Cheaper rent on far less commercial property with out of center locations.

2. Ability to drop ship and avoid costly inventory management

3. Far fewer staff needed

4. Flexible locations

5. More adapable to changing retail trends

6. Grwoing acceptance by a more computer-savvy population.

More to come I am afraid together with a few hundred thousand more job losses as the Internet trade grows. I would invest in UPS etc. as delivery systems should do well in the future.

I may be wrong but I think there was a report of 'Business Post' delivery service struggling a while back.

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If I am on a high and I need bringing down. I always shop at Woollies. They never seem to have anything I want even though they seem to utilise their floor-space to accommodate all the products I should never need.

Often, when I need something I think to myself, Ah Woolies with have that, and when I go there I can find everything else but. Everytime a winner. I just come out feeling drained and depressed.

I look upon it as `self flagellation’ to atone my temptations in this materialistic society

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Guest Baffled_by_it_all

I'm as keen as anyone to see house prices coming down but I don't like all this gloating about job losses. That's someone's livelihood.

The government's got the country in a mess and the banks have exascerbated it by lax lending but other people ending up on the scrapheap isn't something I feel much happiness about. What monetarism showed in the 80s was that the government are more than happy to use their citizens as pawns. Wheras in fact they're elected to provide a better life for the people.

Other than that RB I think you talk a lot of sense.

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if you look back to the late 1970s many jobs were artificially supported by the tax payer in unprofitable national companies.

they were inefficient and when the supply of cheap money was cut by thatcher. they collapsed.

in 2006 many jobs are artificially supported by people lending. many of them support retail.

once the IR goes up and the money supply is cut - guess whats going to happen ?

there is too much high mortgage lending in our economy and room for little else.

woolies have been scuppered by crafty banks. the only people still spending are the renters and the MEWers.

its a dangerous policy. unless your a bank, in which case its excellent news.

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The report is wrong or misleading at best.

54 stores having been closed for periods during the 19 weeks to enable

their 10/10 refit.

and

A similar number of stores are scheduled to be refitted over the remainder of the year.

Ie they closed to enable them to be upgraded to the new format, they are now open again.

Good journalism, they should go back to writing how house prices will double over the next 12 months? :blink:

Edited by erd

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I can never understand how thay keep going. I dosen't matter how many times they try to re-invent themseves, they're still a throwback to the 60's and don't seem to fit into todays retail trade.

I agree. Even the private equity houses who are swarming all over retail groups have baulked at Woolies. It's a particularly depressing shopping experience mostly for chavs, pikeys and the underclass now I'm afraid.

Do they own any freehold properties? If not, the business is finished

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I'm as keen as anyone to see house prices coming down but I don't like all this gloating about job losses. That's someone's livelihood.

The government's got the country in a mess and the banks have exascerbated it by lax lending but other people ending up on the scrapheap isn't something I feel much happiness about. What monetarism showed in the 80s was that the government are more than happy to use their citizens as pawns. Wheras in fact they're elected to provide a better life for the people.

Other than that RB I think you talk a lot of sense.

I agree about job losses being human tragedy. Its hard not to seem to be gloating but it is really gloating at the downfall of the Miracle Economy which has set us up for some painful years ahead. It has ruined many lives through debt and greed and even those who think they have benefited by having houses worth XXX thousands of pounds have gained exactly nothing because everyone elses house has gone up too. Its a delusion of wealth but a whole load of real pain. Every time I see Gordon Brown smiling over his fame and fortune I feel the pain of the lives he has ruined and the econmy he has undermined and I hope the electorate are beginning to feel and see the same.

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if you look back to the late 1970s many jobs were artificially supported by the tax payer in unprofitable national companies.

they were inefficient and when the supply of cheap money was cut by thatcher. they collapsed.

in 2006 many jobs are artificially supported by people lending. many of them support retail.

once the IR goes up and the money supply is cut - guess whats going to happen ?

there is too much high mortgage lending in our economy and room for little else.

woolies have been scuppered by crafty banks. the only people still spending are the renters and the MEWers.

its a dangerous policy. unless your a bank, in which case its excellent news.

Spot on. 10 years ago it was easy to find shop premises in my local Town, now its impossible as the big chains dominate. They have achieved this rapid dominance due to sheeple's unrelenting willingness to spend money on 'stuff'.

I see the 10 year ago position as the true state of equilibrium to which we will return so there will be many retail casulaties.

Repossesions are really rising now. Lets hope sheeples love affair with accumulating stuff (that is forgotton almost as soon as purchased) ends and we all start to recognise what the really important things in life are. Why do people constantly update thier mobile phones, its such an appauling waste and often its 8 year old Africans mining the copper and cobalt that go into to these pathetic little devices.

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The report is wrong or misleading at best.

54 stores having been closed for periods during the 19 weeks to enable

their 10/10 refit.

and

A similar number of stores are scheduled to be refitted over the remainder of the year.

Ie they closed to enable them to be upgraded to the new format, they are now open again.

Good journalism, they should go back to writing how house prices will double over the next 12 months? :blink:

I think you are right--what on earth ARE they saying?

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My local store is very poor empty shelves, staff who literally couldn't care less and look like they just don't want to be there. I'm a Manager and half of them I wouldn't employ. Its that bad the customer service online is truly dreadful. I went in one Monday to ask if they had a CD single the woman who looked like a superviser couldn't even be bothered to look in their relase list to see if they had it in. I had to ask and guess what they didn't they only stock the top 20 or 50 or something. So I went online to HMV and ordered it and also some other goods as well. he could of at least pointed me to their online store or made some sort of effort to see if they could get it in for me. With staff as useless as that your going to end up going under.

That is a prime exmaple of why they are losing sales.

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I think you are right--what on earth ARE they saying?

They have had a store refit program on-going for some time now. It is just some journalist who can't read a financial release to shareholders! They close stores while they rip out shelving, modify layout etc. Nothing to be alarmed about ;)

I agree. Even the private equity houses who are swarming all over retail groups have baulked at Woolies.

Bauger has been building a stake for a while now, everytime the price dips, he ups his stake and the price rises. Last I heard it was 10% or thereabouts.

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it seems to me that the coming months/year will be a tougher environment for uk retailers who rely on imported goods, we know inflation is worldwide so foreign manufacturers prices must be rising causing retailers margins to be squeezed, either that or they pass the increases on to the consumer and we eventually see the cpi creep higher (hooray!), although I doubt consumers will pay, seems like a no win situation for a lot of uk retailers, wouldn't like to be invested in them over the coming months/year

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I am sure you are right. Internet is the future for much retail as it is more effcicient in so many ways:

1. Cheaper rent on far less commercial property with out of center locations.

2. Ability to drop ship and avoid costly inventory management

3. Far fewer staff needed

4. Flexible locations

5. More adapable to changing retail trends

6. Grwoing acceptance by a more computer-savvy population.

More to come I am afraid together with a few hundred thousand more job losses as the Internet trade grows. I would invest in UPS etc. as delivery systems should do well in the future.

You sort of covered it in "5.", but I think that one of the big advantages of internet retail is that you can hedge your bets and effectively run several different bizs with the same staff. E.g. you can run a second hand bookshop, online lolly store, and a custom video editing and production company all under one roof and one set of staff. Space for equipment/stock is not such a problem in a "business park unit" out in the sticks compared to a shop on the highstreet, and you don't confuse customers who would see a shop selling multiple products at once (e.g. Burtons the clothing shop selling electrical goods).

Billy Shears

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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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