Wittards of Chelsea Gone Bust

mitchaa

I personally think Microsoft, Mcdonalds, Virgin, Coca Cola, British Airways, BMW, BBC, Harrods, the Hilton hotel chain and Manchester United will all go into administration next year;)

There, that was the first big 10 i thought of:p

No evidence or structure to my claims i thought i would just jot them down and try and cause a ''panic'' for the sake of it:rolleyes:

patrick0

BellyDuJour wrote: »

I wouldn't be surprised to see Evans and Game close. [..] Game isn't that competitive from what I can gather. [..] I went to buy him a new PS3 controller last weekend and it was £10 cheaper in Zavvi which is a few doors down!

All retail stores have expensive products along with specials - they need to make a profit to pay their rent. Overall I think Game is better value than Zavvi. For a start they sell second hand games. They've been cheaper than Zavvi for everything I've bought recently - eg. Mario Kart, Raymans TV, Wii Wheel, Wii Play etc. In their Oxford St branch they've had 30-40 people long queues over the past couple of weeks.

I'd be surprised if Zavvi lasts - they've stopped selling gift vouchers and are living off loans from Virgin. They have huge shops so presumably massive rents to pay on Xmas day. Their Oxford St store hasn't been all that busy in December. It will be a shame if they do go.

robin_banks

Ditto that, although I wouldn't be sorry to see Zavvi go, I just don't think they're a very good store, everything can be bought elsewhere cheaper.

Their rents must be crippling !!!.

zarazara

well then, if going into administration isnt going bust, then what is ?

carolt

fc123 - you'd know how all this will affect rents etc.

Any chance of us ending up with a nice old-fashioned high street with lots of little independent shops again, as you still get in other European countries?

Or are we doomed to continuing identikit high streets across the UK?

I really hate the way the centre of almost all towns, all shopping centres etc look the same - I'm sure we don't all shop at the same shops because that's all we want, but just because that's all there ever is.

I assume it's because the rents are too high for independents now.

Any thoughts?

Austin_Allegro

carolt wrote: »

fc123 - you'd know how all this will affect rents etc.

Any chance of us ending up with a nice old-fashioned high street with lots of little independent shops again, as you still get in other European countries?

Or are we doomed to continuing identikit high streets across the UK?

I really hate the way the centre of almost all towns, all shopping centres etc look the same - I'm sure we don't all shop at the same shops because that's all we want, but just because that's all there ever is.

I assume it's because the rents are too high for independents now.

Any thoughts?

Partly due to rents I think. Only the chains can afford stupidly high 'bubble' rents, but they also have the economies of scale to give discounts and get staffing that small shops can't.

Also, I think some continental small shops (like French bakers) get bankrolled by the state to stay open.

Also, a lot of British people are sheep-like anyway and don't have much idea of quality, so will go to whatever shop is shown as desirable on the tellie, and Mrs Miggin's corner emporium can't afford that kind of slick marketing however good her products are.

adouglasmhor

zarazara wrote: »

well then, if going into administration isnt going bust, then what is ?

Sorry thanked you instead of quoting you there.

Going bust is going bust. Going into administration can be a way of stopping going bust or a way of making the most of the assets remaining. A pub near me wen't into administration after years of losses and began to make profits straight away, it had been mismanged for years.

globalds

Just to try and look on the positive side.
With all this prime retail space going cheap ,Who do you think will be moving in?
For me I would like to see some of the on-line retailers get a pick up point on the high street.I know Play.com offer free delivery but Scan or ebuyer ,even Amazon would be great if they had a kind of Argos like counter where pick ups could be done ..And returns made .
This isn't only about the huge amount of debt these businesses have been asked to support .This is as much the effect of technology The clone shop on every high street may not be a good model any longer, maybe a return to regional high streets of old will be one of the upsides ...

fc123

carolt wrote: »

fc123 - you'd know how all this will affect rents etc.

Any chance of us ending up with a nice old-fashioned high street with lots of little independent shops again, as you still get in other European countries?

Or are we doomed to continuing identikit high streets across the UK?

I really hate the way the centre of almost all towns, all shopping centres etc look the same - I'm sure we don't all shop at the same shops because that's all we want, but just because that's all there ever is.

I assume it's because the rents are too high for independents now.

Any thoughts?

Speaking from my own experiences only, I believe there will be change over the next decade.

Our problem . as an Indie retailer in a very faddy (and deflationary up until now) sector is that it's not just about turnover.

I can turnover the same ££££ as my Mosaic neighbour BUT i don't work on the same margins. I make a lot less profit and, therfore can't pay the same level of rent/rates.

To T/O £100k, I spend 40k on stock (this allows for unsold and markdowns...we mark up minimum X 3 from cost...average about X 4) Our mark up is exceptionally high for an Indie....most work on x 2.5.

A chain clothing set up that is vertically integrated plus controls where it's product is sold (and therefore the retail price) has ex factory stock costs of max 10k per £100k T/O.

Chains also have economy of scale, so, my old EPOS system was a far greater chunk out of my T/O than the same till system costs would be spread over 100 stores.

Shop floor staff are costed in on min wage/4 hr contracts.....so, by token, that is my 'value' when I work my own shop floor.

My area has changed around me plus the creative direction of what I do has changed again (as it always does every few years) and, I don't feel it is appropriate for my immediate area now. My customers are distraught that we are trying to leave BUT we need to be ahead of the pack.

It takes AGES for retail rents to lower due to upward only rent reviews. LL prefer to keep premises empty and up to let at high levels as it keeps their tenanted properties at high rental levels too. Upward only rent review clauses don't help either and they are standard in most leases.
The new business rates laws on vacant property will change things.

Pop up Shops are the new thing..I wrote about it elsewhere.....I may run with this concept if I can offload my lease. Backed up with a strong online presence, it's a great business model. Temp lettings at reduced rents give a newbie retailer time to find their feet.

Shops that are doing a killing are ones that offer an experience also...I am thinking stores like Mac cosmetics...packed all the time. Girls go in for a £20 makeover and get that ammount credited against a £20 purchase (less than 2 items) plus cosmetics margins are to die for.

Suburban High St's (like my S London one) are a strange thing and not really in my expertise...but look at the customer type who use these local shopping areas....what will they spend ££ on?? My old High St seems full of retired and non working types (I don't want that to sound rude but can't think of a better way to describe them). It's full of poundshops, charity shops, basic chains.

fc123

Austin_Allegro wrote: »

Partly due to rents I think. Only the chains can afford stupidly high 'bubble' rents, but they also have the economies of scale to give discounts and get staffing that small shops can't.

Also, I think some continental small shops (like French bakers) get bankrolled by the state to stay open.

Also, a lot of British people are sheep-like anyway and don't have much idea of quality, so will go to whatever shop is shown as desirable on the tellie, and Mrs Miggin's corner emporium can't afford that kind of slick marketing however good her products are.

I have also heard of laws in France that protect indie stores....I believe that rents are capped for niche retailers. The hypermarket concept was in France before it spread to the UK but the laws protected bakers etc.