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So which retailer is next?
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With Amazon and now Play becoming marketplaces - where many different companies / traders can list millions of products, and price competition being a major factor - it won't be long before many niche bricks and mortar businesses start falling.
You used to be able to find many products through Ebay, but as this has a reputation of second hand with no formal guarantee, it wasn't a major harm.
The game has changed. Millions of products can be compared online instantly and with a guarantee in place from trusted sources. Marketplace vendors don't always have the buying power for regular discounts, but as they compete solely on price - undercutting of high margin high street merchants is inevitable.
As someone has pointed out, the face of the high street will change dramatically in the next 5-10 years more so and quicker than ever before.
The companies who adapt, diversify and seek new online opportunities (whether retail or logistically) could use the power of their brand to survive - those such as Blockbuster who did nothing (with such obvious opportunities) won't.
You used to be able to find many products through Ebay, but as this has a reputation of second hand with no formal guarantee, it wasn't a major harm.
The game has changed. Millions of products can be compared online instantly and with a guarantee in place from trusted sources. Marketplace vendors don't always have the buying power for regular discounts, but as they compete solely on price - undercutting of high margin high street merchants is inevitable.
As someone has pointed out, the face of the high street will change dramatically in the next 5-10 years more so and quicker than ever before.
The companies who adapt, diversify and seek new online opportunities (whether retail or logistically) could use the power of their brand to survive - those such as Blockbuster who did nothing (with such obvious opportunities) won't.
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Maplins may make bigger margins but they have key locations and always over staffed with few customers around. Goodness knows how they trade successfully.
Reminds me of those take aways, butty and florist shops that never have any customers yet two range rovers outside, not that maplins would be in the money laundering business of course.
Reminds me of those take aways, butty and florist shops that never have any customers yet two range rovers outside, not that maplins would be in the money laundering business of course.
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Lol you should have stuck to talking about how they face up their popcorn.
M and s may have struggled with their clothing lines but they are solid as a rock.
M and s may have struggled with their clothing lines but they are solid as a rock.
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Mothercare - which is scandalous...
If i had the right contacts and could get the sort of funding (and had any time obviously) - I'd buy it...
Change it's image - put a coffee shop lease in there and get it's online operation working with the "buy online" and "try in store"/"pick up"... Downsize some of the big retail operations they have in places like Brent Cross etc. unless said coffee shop or play area goes in.
There's only 2 certain things in life :
birth
death
And they should have cornered this first one years ago.. piss poor management and vision IMHO.
** a very very simplified version of what to do obviously... before anyone points out my misfailings!!
If i had the right contacts and could get the sort of funding (and had any time obviously) - I'd buy it...
Change it's image - put a coffee shop lease in there and get it's online operation working with the "buy online" and "try in store"/"pick up"... Downsize some of the big retail operations they have in places like Brent Cross etc. unless said coffee shop or play area goes in.
There's only 2 certain things in life :
birth
death
And they should have cornered this first one years ago.. piss poor management and vision IMHO.
** a very very simplified version of what to do obviously... before anyone points out my misfailings!!
They closed the one in Bolton ages ago. The town centre is like the Marie Celeste! Shop after shop closed. Many prime locations.
and taxis... or is that taxes?
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I think one of the major factors killing small retailers is down to the insane property boom when companies bought up huge swathes of retail properties at crazy prices and consequently needed to charge so much rent that small businesses became unsustainable.
We looked at a retail unit in the town center owned by some property company in the Isle of Man who owns most of the other retail units there too.
It was on the area with the least footfall (ie hardly any), it was a small unit only suitable for a small retailer, and they wanted us to sign a 5 year contract with a break point at 3 years at £3500 per month in rent.
If you do the maths of the turnover you'd need to cover that and other overheads, plus of course to pay yourself a wage, then it's obviously impossible to make it work.
This same company also dropped the bombshell on some of the bigger retailers that their rent was doubling when contracts needed renewing, causing a one of them to just shut the store, and another that had been in the same place for maybe 30 years to look for somewhere new.
The result is loads of empty shops and a dying town center.
We looked at a retail unit in the town center owned by some property company in the Isle of Man who owns most of the other retail units there too.
It was on the area with the least footfall (ie hardly any), it was a small unit only suitable for a small retailer, and they wanted us to sign a 5 year contract with a break point at 3 years at £3500 per month in rent.
If you do the maths of the turnover you'd need to cover that and other overheads, plus of course to pay yourself a wage, then it's obviously impossible to make it work.
This same company also dropped the bombshell on some of the bigger retailers that their rent was doubling when contracts needed renewing, causing a one of them to just shut the store, and another that had been in the same place for maybe 30 years to look for somewhere new.
The result is loads of empty shops and a dying town center.
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Yep completely true Dashu1...
End of quarter rent time will be interesting as there is no way a lot of companies out there can carry on when the rent (and don't forget bloody business rates) mean making enough to cover that and wages almost impossible.
It will be a hard lesson though as unemployment and then companies going to the wall (like Punch for example) will be the only way this will get corrected... and that means more unemployment...
Take a deep breath when we get our credit downgraded as that will have a big effect on some larger companies too...
Triple dip does seem somewhat unavoidable... unless the govt can cook up some figures...
End of quarter rent time will be interesting as there is no way a lot of companies out there can carry on when the rent (and don't forget bloody business rates) mean making enough to cover that and wages almost impossible.
It will be a hard lesson though as unemployment and then companies going to the wall (like Punch for example) will be the only way this will get corrected... and that means more unemployment...
Take a deep breath when we get our credit downgraded as that will have a big effect on some larger companies too...
Triple dip does seem somewhat unavoidable... unless the govt can cook up some figures...
Next quarter day is March25, and with the potential triple-dip and jan/feb always being tight march will be the tipping point for a few more big names I fear.
As much as I want to push myself in the ecommerce direction it's going to be strictly online only. How the government wants to promote new businesses (from public sector redundancies no doubt) yet gives little or no support in the area of set up I don't know.
There may be a few commercial landlords silently sinking beneath the waves as well... though I doubt they'll be missed!
As much as I want to push myself in the ecommerce direction it's going to be strictly online only. How the government wants to promote new businesses (from public sector redundancies no doubt) yet gives little or no support in the area of set up I don't know.
There may be a few commercial landlords silently sinking beneath the waves as well... though I doubt they'll be missed!
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I spend a great of deal in Ireland, and for some it is far worse there for retailers than here. Interestingly I was in a small town only recently in a "record" shop, browsing the vinyl. In fact this shop seemed to be doing rather well. This shop was a pop-up shop taking advantage of the peppercorn rents on offer.
Talking to the owner gave me a feeling that the market must bottom out in the UK first and that means that Landlords have to be reasonable about rent and realize a occupied shop is better than an empty one. In Ireland the demise has been a little quicker for many businesses so they are rock bottom now in some cases, rents are meaning that business is viable - like for the record store.
Commercial rents can achieve double digits, but there is glut of it around. But until some of the large institutional commercial property landlords write off their expectations or break ranks, we'll see an implosion. But I shall look forward to the prospects of new businesses that come along and a find a use for the retail space. Perhaps we'll see more independents, antique stores, coffee shops, and experiential shopping in the high street.
The days of taking footfall for granted are OVER.
Talking to the owner gave me a feeling that the market must bottom out in the UK first and that means that Landlords have to be reasonable about rent and realize a occupied shop is better than an empty one. In Ireland the demise has been a little quicker for many businesses so they are rock bottom now in some cases, rents are meaning that business is viable - like for the record store.
Commercial rents can achieve double digits, but there is glut of it around. But until some of the large institutional commercial property landlords write off their expectations or break ranks, we'll see an implosion. But I shall look forward to the prospects of new businesses that come along and a find a use for the retail space. Perhaps we'll see more independents, antique stores, coffee shops, and experiential shopping in the high street.
The days of taking footfall for granted are OVER.
Looks like no one spotted this one?
Republic next biggie to go into administration. With quarterly rents pending in a few weeks many more may make the mad rush to administration to salvage what's left of a going concern...
http://www.bbc.co.uk/news/business-21442301
Republic next biggie to go into administration. With quarterly rents pending in a few weeks many more may make the mad rush to administration to salvage what's left of a going concern...
http://www.bbc.co.uk/news/business-21442301
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this thread is going to roll on and on...would it be easier saying the least likely to go under
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Greggs
My local one was on the first list. Looks like a gutted carcas inside now. Sad.
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I happened to be in an Arndale centre yesterday and noticed menkind had what looks to be closing down notice. Whether this is just a sales gimmick or not it looks like menkind has gone bankrupt or is heading that way.
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