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Peacocks in administration

12357

Comments

  • tyllwyd wrote: »
    I tried doing my main Christmas shopping online a couple of years ago, and found that I'd order things which seemed to be in stock, only to find that after waiting a couple of weeks later, when it was too late to try somewhere else, I'd get an email telling me that it was no longer available. And with delivery charges £4 or more, you have to plan where you shop carefully - I'm probably shopping slightly less online than I used to, rather than more.

    I agree about councils and carparking charges though - ours went up sharply a couple of years ago, and it does make me think twice about popping into town.

    I remember Peacocks from the 1970s, when it was the only clothes shop in the Welsh town where I grew up, and it was painfully bad. (The only thing worse was the Marshall Ward catalogue my mum used to shop from.) But I've bought bits and pieces there for my kids in the last few years, and its a good place to go when you need something cheap.

    I can honestly say I have hardly ever paid any postage charges/delivery charges when I shop online in the last 2 years. Most of my purchases come from Amazon (I buy everything but the kitchen sink from them! :p) and other places I shop with free delivery codes. I save hundreds on the prices I would pay in the highstreet and am always first with sale bargains. I admit I only buy high-end stuff (I did poor yrs ago, didn't like it much, don't plan on going there again ;)) but I do not pay high-end prices. I have commented elsewhere on these boards about the stupid prices I am getting designer gear and high quality stuff for as a regular internet shopper, who the struggling retailers are chasing as we do have money to spend. Its a great time for those with money to spare but sadly, its horrible for those out there who are renting, trying to buy a house or those who work in the industries most affected by the recession. This recession has enabled me to even pay off my mortgage with such low interest rates for so long etc etc. If more spent time online they would find lower prices, better customer service than the high-street and with all the distance selling regulations in place, you are protected a lot more with your purchases.

    I feel for those who work for Peacocks, its a shame :(
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    tyllwyd wrote: »
    And with delivery charges £4 or more, you have to plan where you shop carefully - I'm probably shopping slightly less online than I used to, rather than more.

    I agree about councils and carparking charges though - ours went up sharply a couple of years ago, and it does make me think twice about popping into town.

    If you shop around you can usually shave the delivery costs or get free codes online.

    If you are only going for a specific purchase by the time you have spent half a gallon of fuel and a couple of quid on car parks you've spent a fiver anyway. Many retails do delivery to a local store for pickup too for free, especially those with "direct shopping" arms with bigger choice.
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
  • rach83
    rach83 Posts: 300 Forumite
    My local Morrisons have stocked Peacocks clothes for the last 6 months. Wonder what will happen with regards to these outlets?
  • MrRee_2
    MrRee_2 Posts: 2,389 Forumite
    There was clearly no market for Peacock's clothes ...... now, is it because the lower end of the buying public have stopped spending OR is it because TESCO's and the like are doing better clothes, cheaper?

    OR has the buying public upped their game and are now seeking quality instead of tat?

    I'm not sure which it is - but, the selling of tat has had the very unfortunate side effect of putting people out of work .... and that is a disaster for them and their families and is very sad indeed.
    Bringing Happiness where there is Gloom!
  • fc123
    fc123 Posts: 6,573 Forumite
    chopps wrote: »
    Their regular (non-sale) prices seemed to be a lot more expensive than their competitors (Primark, George, Tesco).
    Whether it was the credit crunch in 08 or the fact that people had run out of storage space after a decade of cheap clothing being available ...it was on the cards that the 'value' end of the market was suffering from over supply. Peacocks did try to trade up but failed dismally as they are not aspirational ~(despite trying to be with a Daisy Lowe range) nor were they at the rock bottom end (a la George @Asda or Primark) and couldn't keep up with New Look for the fast young fashion .....so it has been doomed for quite a while.
    The weak player in that sector.
    mazza111 wrote: »
    I've had some nice stuff from peacocks over the years, even better when I got my friends and family discount from a friend :T This year's winter range I thought had really gone down in quality though. And found Bon Marche had more of the better quality stuff.

    I will be sad to see it go, and extremely sad for all who lose their jobs

    One of the things that is very noticeable, especially recently, with a lot of the lower priced clothing chains is 'quality fade'. They work to customer price points so base the buying price on this. Most do this anyway but it is beginning to kick in as the quality fade happens gradually. It's only when you comapre a garment from 8 years back to now that you can see the difference. They push the supplier to get x jumper at £5 cost price to retail @ £20. Supplier needed £5,50 to maintain his margin and profitability.
    Supplier wants the bulk order so agrees to supply @ £5. Buyer is very happy as they think they have cut a good deal for their comapny and their customer who feels that £20 for a jumper is 'good value' and wouldn't pay more.

    Factory then goes away and trims a bit of yarn weight back, shrinks the sizing a touch and so on so he can maintain his margin. He fades the quality very slightly over several areas, almost impossible to notice on 1st glance and everyones a winner.

    Except the following season he has increased costs so needs about £5.75 per jumper. Buyer from value chain now has a brief to allow for a discount/promotion in on the £20 Retail Price (as these are very popular and everyone is doing them dontchaknow). She now only has £4.50 to play with though they will still sell @ £20 RP and £17 on a promo. He wants the deal so agrees and quality fades the garment even more.

    That's why so much value product doesn't last or wear well.......so has to be replaced so often. It's a kind of ever decresing spiral. a race to the bottom.....and Peacocks joined the race and lost.

    Here is the latest from the trade press. Link is for suscriber only.
    Richard Kirk in eleventh hour talks to save Peacocks

    17 January 2012 | By Tiffany Holland
    Peacocks chief executive Richard Kirk has been in crunch talks to thrash out a deal to save the value clothing chain with a mystery investor.


    The eleventh hour effort followed the Peacock Group filing a notice of intent to appoint an administrator yesterday,after talks to restructure its £240m of debt failed.
    It is understood Kirk, who owns 30% of the business, is being backed by an unnamed financial investor and he has the provisional support of the two largest lenders to the retailer, RBS and Barclays, for the plan.
    If a deal is agreed, Kirk will need the backing of advisor KPMG.
    A notice of intent to appoint an administrator was also filed against Peacock Group’s other chain, value retailer Bonmarche. But an acquisition by private equity firm Sun European is thought to be lined up for a Bonmarch! acquisition.
  • fc123
    fc123 Posts: 6,573 Forumite
    MrRee wrote: »
    There was clearly no market for Peacock's clothes ...... now, is it because the lower end of the buying public have stopped spending OR is it because TESCO's and the like are doing better clothes, cheaper?

    OR has the buying public upped their game and are now seeking quality instead of tat?

    I'm not sure which it is - but, the selling of tat has had the very unfortunate side effect of putting people out of work .... and that is a disaster for them and their families and is very sad indeed.

    This is a bit of an odd remark (but I am guessing you are not being serious) and by 'tat' I guess you mean the cheaper end of the market.
    There is a market for all price points/qualities in every sector. Just the volumes in each market vary and adjust according to what's going on at the time.

    Fashion plays a part too and I can 100% confirm that whilst the value sector will remain and have a huge customer base, on a fashion /trend led level it is now becoming invisible. The whole noughties fad for Primarni and so on is dnow sooo last decade. :D

    The Fash pack have moved on and the new aspirational way to shop is fewer pieces but better quality and less distribution (so not appearing to be worn by the 'masses') plus handmade (by oneself) or reclaimed/recycled (again as in the 90's recession).
  • DJDavey
    DJDavey Posts: 61 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    MrRee wrote: »
    There was clearly no market for Peacock's clothes ...... now, is it because the lower end of the buying public have stopped spending OR is it because TESCO's and the like are doing better clothes, cheaper?

    Erm Peacocks was making £70 million year the debt is from a buy out back in 2006

    Want to get your fax right, and I agree MrRee is a total k**b
  • fc123
    fc123 Posts: 6,573 Forumite
    DJDavey wrote: »
    Erm Peacocks was making £70 million year the debt is from a buy out back in 2006

    ...and if they find a buyer maybe they'll carry on debt-lite but the core problems are the same for the chain and 70 million isn't a lot considering the size of the chain and the volume that it sells.

    I would bet that it will hit the buffers again in 2 or 3 years time even if it survives this time around.
  • fc123 wrote: »
    ...and if they find a buyer maybe they'll carry on debt-lite but the core problems are the same for the chain and 70 million isn't a lot considering the size of the chain and the volume that it sells.

    I would bet that it will hit the buffers again in 2 or 3 years time even if it survives this time around.

    I agree with everything you have said.
  • phil_b_2
    phil_b_2 Posts: 995 Forumite
    Peacocks has always been really good for the basics. You can pop in and get the usual plain white/black/grey tops, t-shirts and some standard jeans real cheap. The style and quality of their products has deffo improved in the last couple of years, but not soon enough it seems. Oh well. T'is a shame.

    As for the high-street having no place for fashion shops etc, I don't agree. I will always need to try a pair of boots on before buying them. You cant possible gauge comfort on an image on a website and a bunch of reviews. Same goes for most clothing really. I've had plenty of good online clothing purchases at bargain prices, but also plenty of ill-fitted stuff that didnt match the description.

    I'd say electronics is a different story alltogether though. I really dont know how electronics retailers are still in business on the high-street. All the net reviews are more than enough to make up your mind on what to buy, there's no real issue of personal comfort for stuff like that. It's either good or isnt.
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