40 Stores to Close... (part 2)

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William Joseph1
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Re: 40 Stores to Close... (part 2)

Post by William Joseph1 » Sat Nov 03, 2018 2:00 pm

pabenny wrote:House of Fraser, Evans, interest in taking full control of Debenhams. A whiff of over-reaching?
The thought had crossed my mind.
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Re: 40 Stores to Close... (part 2)

Post by Boro Boy » Sat Nov 03, 2018 10:53 pm

Mike Ashley is building an empire on the high street, love him or hate him, he is the future of the high street...
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Re: 40 Stores to Close... (part 2)

Post by pabenny » Sun Nov 04, 2018 8:54 am

High Street empire... to limited extent.

The future of the high street... for a time, maybe. Anyone remember Baugur, the Icelandic business headed by Jon Asgeir Johannesson. They acquired Iceland, Hamleys, Goldsmiths and many more as well as sizeable stakes in HoF and Debenhams before it all came crashing down.

Mr Ashley may be buying distressed businesses at low valuations but that doesn't mean he can turn them round.
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Re: 40 Stores to Close... (part 2)

Post by planteria » Sun Nov 04, 2018 9:13 am

it's interesting. there's no doubt he is buying in a buyers market, but making these retailers profitable is not easy in the current market. he will cut operating costs, of course, and runs a very sharp buying operation.. but even so, it's a really big ask. is Sports Direct Intl the vehicle for all of these holdings, such as Evans? if so they become an interesting equity holding: but backing them as a retailer against Amazon.com Inc..... :problem:.

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Re: 40 Stores to Close... (part 2)

Post by Constantine » Sun Nov 04, 2018 2:46 pm

pabenny wrote:High Street empire... to limited extent.

The future of the high street... for a time, maybe. Anyone remember Baugur, the Icelandic business headed by Jon Asgeir Johannesson. They acquired Iceland, Hamleys, Goldsmiths and many more as well as sizeable stakes in HoF and Debenhams before it all came crashing down. ...
Yes, but Baugur failed because Baugur failed, and not because of any problems with its acquisitions. Basically it borrowed the money from Landsbanki (?) and it all went tits up with the Icelandic banking crisis.
pabenny wrote: Mr Ashley may be buying distressed businesses at low valuations but that doesn't mean he can turn them round.
I read that he paid £8m for Evans but got his hands on £28m worth of stock.
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40 Stores to Close

Post by William Joseph1 » Fri Nov 09, 2018 8:32 am

https://www.bbc.co.uk/news/business-46142025

And life goes on. The high street continues to evolve and change. Some would say for the worse. But no doubt it is changing and continuing to evolve. All the job losses seem to be absorbed (although devastating for those involved) Unemployment is at its lowest level for years.

I in my mind have no doubt that the key to this is rates and the way we tax companies, I have yet to be convinced that our government is dealing with this in a meaningful way. Also the constant drive for big companies to make more and more profit. and the obscene money that CEO and directors are making. If expectations were lower and more realistic then a change could be made. I have yet to be convinced that our government is dealing with any of this in a meaningful way.

The whole concept of the high street needs to be reevaluated do we need one in the way that out forefathers knew it. Do we need one at all?
Last edited by William Joseph1 on Fri Nov 09, 2018 8:41 am, edited 2 times in total.
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Re: 40 Stores to Close

Post by parchedpeas » Fri Nov 09, 2018 8:38 am

William Joseph1 wrote: All the job losses seem to be absorbed (although devastating for those involved) Unemployment is at its lowest level for years.
Unemployment figures may be falling, but underemployment is rising. The obsession with comparing 'job' numbers today versus 1985, for example, is like comparing an orange with a Ferrari: a 35-hour a week, well-payed job in manufacturing or retailing counts as 1 job. Three people, each doing 11.5 hours on the minimum wage every week counts as 3 jobs: this makes the unemployment figures totally irrelevant.

Also, to add, the worker on 35 hours a week will be paying both tax AND NI into the kitty whereas the 3 people on 11.5 hours a week will be paying nothing and will likely be given some tax credit / housing benefit support as well.

The whole system is broken and nobody really has a plan to fix it.

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Re: 40 Stores to Close... (part 2)

Post by Boro Boy » Fri Nov 09, 2018 8:57 am

Exactly, all these job losses on the high street etc. are not been absorbed at all, just manipulated. If it was possible we should be measuring job hour losses/gains but this may be much more difficult to measure and more easily manipulated... There is one thing for sure; we are not seeing the true picture...

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Re: 40 Stores to Close... (part 2)

Post by pabenny » Fri Nov 09, 2018 9:46 am

The UK retail scene has been one of boom and bust. High streets have been over-expanding for years. Twenty years ago, it seemed that every other store was a shoe shop, mostly part of the British Shoe Corporation. When they went under, card shops took many of the vacated units but we stopped sending so many greetings cards. Then it was mobile phone stores; after that coffee shops and restaurants.

At the same time, we’ve been taking our shopping online. According to ONS data, 17% is spent online in the UK compared with less than 10% in USA and a tripling over the last 10 years. That proportion also spikes up in November – not just the actual £ spent, the share spent online increases too.

In other words, the high street of the 90s and 00s is toast and no amount of messing with rates will change that. Retailers, town centre planners and managers, policy-makers all need to recognise that the high street of the 2020s will inevitably look very different – fewer stores, lower footfall.
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Re: 40 Stores to Close... (part 2)

Post by Boro Boy » Fri Nov 09, 2018 12:18 pm

pabenny wrote:The UK retail scene has been one of boom and bust. High streets have been over-expanding for years. Twenty years ago, it seemed that every other store was a shoe shop, mostly part of the British Shoe Corporation. When they went under, card shops took many of the vacated units but we stopped sending so many greetings cards. Then it was mobile phone stores; after that coffee shops and restaurants.

At the same time, we’ve been taking our shopping online. According to ONS data, 17% is spent online in the UK compared with less than 10% in USA and a tripling over the last 10 years. That proportion also spikes up in November – not just the actual £ spent, the share spent online increases too.

In other words, the high street of the 90s and 00s is toast and no amount of messing with rates will change that. Retailers, town centre planners and managers, policy-makers all need to recognise that the high street of the 2020s will inevitably look very different – fewer stores, lower footfall.
Whilst what you say is true I don't think it can be a measure as to what is happening now; nothing like the present has been experienced previously. Currently we have 14 shops a day closing: https://www.standard.co.uk/news/uk/brit ... 85311.html

...and as if we needed proof of ongoing business collapses: https://www.standard.co.uk/business/but ... 80771.html :wtf:

This all should be a matter of deep concern but seems to be being largely ignored... :think:

What do we see as the high street of the 2020's?

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