Mary Portas take on dying High St's

fc123

Dopestar, where are the Depression quotes from..I am sure I have read them somewhere.

Harry_Powell

fc123 wrote: »

No idea but it would have been a pretty grim retirement.

Rule of thumb, shop Turnover should be 10 times rent. It's an old sum that has gone a bit awry over the past 4 years.

His shop was a cheapy premises, I guessed rental of £5k pa (based on sale price of 90k?) so expected T/O of £50k pa.

Shoes (esp Startrite etc) have no leeway on the mark up so I would expect one to make 15% profit max on gross T/O.

Shop would earn £15k pa before tax if it met it's sales targets which would be unlikely)...not a massive amount for the hassle and risk.

Wasn't he also looking at renting out two flats that came with the shop at 2 or 3 hundred per month? With an income of £450 from the shop and 2x £250pm from flats he would have made almost £1000 per month. I've no idea what that return represents on his initial investment but as he also had normal pensions plans as well, it doesn't sound too bad a retirement to me?

fc123

Harry_Powell wrote: »

Hopefully, as a result of the recession and HPC, we'll see a return to people looking for value and quality in the products they purchase, instead of blindly buying a 'name' in the mistaken belief that they're getting what they pay for in quality and in order to impress others.

This is a very blanket staement...where do you think all the ideas come from for fashion?
The guys at the bottom rung have no margin for product development, no spare to employ designers..they just feed off everything else for free.

If the creative types can't develop new products and earn a living from selling them, no new ideas will come to market.

Harry_Powell

fc123 wrote: »

This is a very blanket staement...where do you think all the ideas come from for fashion?
The guys at the bottom rung have no margin for product development, no spare to employ designers..they just feed off everything else for free.

If the creative types can't develop new products and earn a living from selling them, no new ideas will come to market.

I know people who buy Armani because of the name, regardless of whether the style suits them. I have also seen someone pay over £50 for a white T that had 'Versace' printed on it in large letters. Very innovative :rolleyes:

I don't believe that only the guys employed by armani, versace, and the other 'designer' clothing companies have talent and ideas.

Pobby

I am deffo thinking that the way to go is the internet. My most profitable customers embraced that concept. When I retailed, we were one of the first with a website but sadly it was too early on, mid 90`s.

You know, some companies now offer third party shipping. Folk buy from the site, order e-mailed to the supplier and the goods are shipped directly from their warehouse. No stock to carry, 120k was a lot for me but there you go that was what I had early 90`s.

I am sort of semi retired at the mo, due to lack of trade.Realised that I can`t see myself being fully retired and I am looking into e-trading in a serious way. One it will give me something to do and secondly it will boost our pension.

fc123

Harry_Powell wrote: »

I know people who buy Armani because of the name, regardless of whether the style suits them. I have also seen someone pay over £50 for a white T that had 'Versace' printed on it in large letters. Very innovative :rolleyes:

I don't believe that only the guys employed by armani, versace, and the other 'designer' clothing companies have talent and ideas.

Branded clothing and 'designed' are different. You refer to Branded clothing...many of those companes take initial direction from niche lables lower down the food chain anyway

fc123

Harry_Powell wrote: »

Wasn't he also looking at renting out two flats that came with the shop at 2 or 3 hundred per month? With an income of £450 from the shop and 2x £250pm from flats he would have made almost £1000 per month. I've no idea what that return represents on his initial investment but as he also had normal pensions plans as well, it doesn't sound too bad a retirement to me?

The shoe shop doesn't sound like a good idea at all to me.....but then I know a lot about the shoe industry as a whole and where indie retailers sit within it.

So, then it's a basic BTL concept but with some heftyish business rates to pay. If shop is vacant long enough, may get full resi status eventually if he applies to council......and then there could be profit.
Depends how long it would take though as the business rates payable in the meantime could wipe out the gain in the future.

So, how come you are so interested HP?

dopester

Harry_Powell wrote: »

I don't believe that only the guys employed by armani, versace, and the other 'designer' clothing companies have talent and ideas.

They don't. Some of the premium goes in to the quality, but also fighting for market position. TBH it must be very complicated running a company of that size and trying to prosper in these market conditions. The complexity. Have to go on a war-footing.

Some of Armani's latest poster campaigns... like the black and white, oil-covered flesh of Beckham, Eva Mendes... (which of course some of the premium goes to major advertising campaigns to fight for market position) they are like a throwback from the little I remember from the late 80s.. and I'm not sure they go with the current times and are that appealing to their target market - but could be wrong.

I'm thinking perhaps a little more sophistication or - underwear... something a bit classier and memorable... like the Levi's Nick Kaymen approach.. but maybe hot bodies oiled up in sexy/macho-posing is a time-tested forumula. Just seems so... old-world, boom-world.

Armani, Versace and so many others like.. Dolce and Gabbana, will have to fight to keep their position, or even survival. There are so many fashion names.. Karen Millen.. Tommy Hillfiger... Ralph Lauren. Some will surely fail, or encounter competition from new challengers with new ideas, for a changing market-place.

Depressions are periods when brand loyalties in practically any produce line are up for grabs. Companies that trade on identifiable brands will be vulnerable to new competition. Brands that do not go hand-in-hand with superior products will not be worth premium prices.

fc123

The one thing that is certain is all humans like different things.

One will splash out on a branded Der and Gerr ((D + G) top that is fairly meaningless in terms of design but says something about them (~or so they think...I do trade sub mainstream so have views on that kind of product), another will wear a tee from Primark and be equally as pleased...shows thrift perhaps...as it doesn't do much else except cover the body.

Many different styles, different priorities over spend, personal taste etc etc.
It's why internet shopping is so perfect for niche products/styles.

dopester

fc123 wrote: »

Many different styles, different priorities over spend, personal taste etc etc. It's why internet shopping is so perfect for niche products/styles.

Yes but how do you... get an edge? How do you stand out from all your internet competitors? Get the traffic/orders against so much competition.

Bribe a celeb to wear your gear to an event covered by the press? Or stock gear which is niche, but genuinely appealing and desirable, with a premium.. and develop trust and quality in your brand.

I notice your guy baggamenswear seems to have extended in to a full 60% sale on so many more items, from when I clicked last night (could be wrong).

Even in that mid-range market... must be very hard to compete against a streamlined established operator like him - and even they must be feeling some pressure in the market.

Does his company still has real-world stores about... with pc screens of stock inside the store? Actually I think I've found out... one main shop, rest mail-order/internet.

fc123 wrote: »

I read an article in MWB recently (not published online) about this guy
http://www.baggamenswear.co.uk/UNQ_HomePage.aspx

I remember his first store from 15 odd years back.
He has just removed loads of trad rail space and stock ......installed PC's so customer can view online but instore, has some stock displayed, masses of service available to any customer and they serve from stockroom instead.
Stockroom space was massively increased so he runs everything from one site now.
Smart guy.

Bagga has been one of the UK's best Menswear Retailers since 1994, when we opened our first High Street Shop.

In 2002 Bagga was awarded the industry's highest accolade - the FHM award for Best Small Retailer in the UK.

Bagga was in competition with hundreds of the Uk's best, and was judged on criteria including Customer Service, Product Mix, Presentation and Communication. Our proudest moment in our fourteen-year history.


Bagga is an authorised stockist of every brand we sell. Beware of websites selling "grey market" or "parallel import" goods. Often, these goods are second-rate, old stock or inferior merchandise. We are friends with most of the U.K. agents and distributors, and have relationships going back years. There aren't many companies who can boast such long-standing relationships with Armani, G Star, Evisu, Lacoste, Diesel, Michiko Koshino, True Religion, Penguin...... The list goes on and on. Shop with Bagga for total peace of mind. An award-winning retailer with 15 years experience and a High Street Shop.

One of the best selections of Designer Jeans and Designer Clothing on the planet !! (well, in the UK anyway)!!