X-Mas Retail Season.... Boom or Bust?

wageslave

I love Christmas. I dont begrudge a penny it costs me.

We are planning this years staff party round the final of X Factor. Into each festive season a little rain must fall:rolleyes:

fc123

Thrugelmir wrote: »

In the real world things are somewhat different. Whilst the recession may be over. We still have the pain to endure.






Full article http://business.timesonline.co.uk/tol/business/industry_sectors/retailing/article6860061.ece

I read that today too.
Many are massively geared up so can't pay the interest.

The other big issue is the overcapacity in every sector.
Masses more shopping all over the country (new schemes and malls) plus the rapid rise in online (as broadband now becomes an everyday expense in many households) as it is safer and faster.

I have a teen daughter who has an allowance to spend on what she likes. We don't buy her anything part from decent shoes, school stuff and basic haircuts. If she wants a chi chi salon cut, it has to come from her allowance.

Hardly any of her ££ is spent locally in the mall. She wanders around it a lot and hangs out (mainly in winter as it's nice and warm) but purchases goods from all over the world online. All her friend are the same.

A lot of rents have come down and rates are being re-valued downwards...(until the upwards revalue comes in) but if T/O drops and retailer is stuffed up with debt and his grateful Chinese suppliers won't supply at less and less to up his margin...then it's going to be tough.

I cannot believe that comm property has reached the bottom..it's just not possible IMO.

michaels

The year they took over the Science Museum for the evening was nice - and not even a company I worked for...the best ones tho I can't remember

Thrugelmir

fc123 wrote: »

I read that today too.
Many are massively geared up so can't pay the interest.

The other big issue is the overcapacity in every sector.
Masses more shopping all over the country (new schemes and malls) plus the rapid rise in online (as broadband now becomes an everyday expense in many households) as it is safer and faster.

I have a teen daughter who has an allowance to spend on what she likes. We don't buy her anything part from decent shoes, school stuff and basic haircuts. If she wants a chi chi salon cut, it has to come from her allowance.

Hardly any of her ££ is spent locally in the mall. She wanders around it a lot and hangs out (mainly in winter as it's nice and warm) but purchases goods from all over the world online. All her friend are the same.

A lot of rents have come down and rates are being re-valued downwards...(until the upwards revalue comes in) but if T/O drops and retailer is stuffed up with debt and his grateful Chinese suppliers won't supply at less and less to up his margin...then it's going to be tough.

I cannot believe that comm property has reached the bottom..it's just not possible IMO.

I'm hearing that Chinese factory prices are rising. Days of extremely cheap manufacturing costs are drawing to a close. (thats for quality product). As skilled labour is in high demand.

fc123

Thrugelmir wrote: »

I'm hearing that Chinese factory prices are rising. Days of extremely cheap manufacturing costs are drawing to a close. (thats for quality product). As skilled labour is in high demand.

I should google for a link (as it's you Thrugelmir ) but I read that the Chinese Govt gave tax rebates or free loans to exporters? Meant they could produce and sell at cost and still make a profit.

I have heard that the old 'You have nowhere else to go' syndrome has kicked in....so, retailers have to pay the prices requested.


Our factory is currently inundated with calls to manufacture at the moment but is slowing down to retirement and refuses to work with any chains again. He couldn't anyway as the 63 staff he laid off are all employed elswhere now.

Problem also is all the specialist machinery got auctioned off for pennies at HMRC auctions and was packed up into the empty containers going back to China.
The last UK garment factories all fell off a cliff during the past 10 years. Whole industry decimated just like the heavy industries were in the 80's.

It's all market forces bla de bla but sad really.

China wasn't going to work for pennies forever...and Bangladesh won't either though it will take them a long while to catch up.