First retail ‘name’ to pop off 2018

[anonymous-user]

JPJPJP said:

Mothercare closing 60 stores, raising money, tough climate etc

http://otp.investis.com/clients/uk/mothercare_plc/...

This will apparently leave them with 77 stores by June next year.

Do we think Mothercare will still be around by then?

[soxboy]

Joey Deacon said:

This will apparently leave them with 77 stores by June next year.

Do we think Mothercare will still be around by then?

If they are run better, they should be. A good baby equipment shop should do very well as its such a big market, maybe this wobble they've had will give them chance to reconfigure, reflect and reinvent.

[SydneyBridge]

People wil always have babies so they will survive.
They need to get it right what they should sell and what to not bother with..

I would always buy big things from Mothercare, prams, cars seats etc. The staff are also pretty knowledgeable and can try prams and cars seats out and see if will fit in car.

Baby clothes though, much cheaper and bettter places

[FourWheelDrift]

Their customers are young and net-savvy.

I wonder if the could operate a kind of Argos business model, have smaller shops with just 1 of each of their larger items in stock for display and demonstration purposes only. They don't need to stock nappies, talcum power or baby food or such-like, just the bigger things. Customers can come in and look them over for size, comfort then in the shop they can order online and have it sent to the shop for them to pick up or to their home within 24/28 hrs. So smaller shop, probably get away with 2 staff and much lower overheads. Most if not all people buying a pram don't need it right now, it's planned ahead so they should have no problem waiting. Customers can still order the smaller items not displayed such as nappies from them.

[saaby93]

FourWheelDrift said:

Their customers are young and net-savvy.

I wonder if the could operate a kind of Argos business model, .

Hasnt argos pretty much taken over their model

[FourWheelDrift]

saaby93 said:

FourWheelDrift said:

Their customers are young and net-savvy.

I wonder if the could operate a kind of Argos business model, .

Hasnt argos pretty much taken over their model

Some kind not the exact Argos, Argos still uses large units on with all the items in stock on that site, if they just used a small shop as a display shop but have all the stock in one location they send them out from. So instead of the laminated book of dreams, a code and a cashier, then wait for the Hobbit to collect the item for you, the Mothercare model would be, have a look at the pram, decide they like it, order it online then sent from the one large warehouse for a pick up later or delivered to home. So no cashiers, no Hobbits on site, no need for huge behind the scenes stock storage.

[saaby93]

FourWheelDrift said:

Some kind not the exact Argos, Argos still uses large units on with all the items in stock on that site, if they just used a small shop as a display shop but have all the stock in one location they send them out from. So instead of the laminated book of dreams, a code and a cashier, then wait for the Hobbit to collect the item for you, the Mothercare model would be, have a look at the pram, decide they like it, order it online then sent from the one large warehouse for a pick up later or delivered to home. So no cashiers, no Hobbits on site, no need for huge behind the scenes stock storage.

Many peeps dont like that - they much prefer to buy it here and now

Nothing worse than going into a furniture showroom eyeing up the sofa - I'll have it.
Sorry thats display only it 'll take 6 weeks to get you one
No thanks

[FourWheelDrift]

24/48hr delivery from a central warehouse won't be long, no different to any internet purchase. I can actually see the only non-essentials high street stores still plodding along in traditional form will be the ones sustained by the elderly who don't do the internet. Something has to change.

[grantone]

Mothercare was fairly useful to us to view pram, cot, car seat, but we bought online. With Toys R Us gone I don't know where I would go if Mothercare also went to see a large selection in one place. Do the manufacturers need to support physical shops to drive all their sales channels? Is it normal to charge manufacturers for floor space?

[skwdenyer]

FourWheelDrift said:

saaby93 said:

FourWheelDrift said:

Their customers are young and net-savvy.

I wonder if the could operate a kind of Argos business model, .

Hasnt argos pretty much taken over their model

Some kind not the exact Argos, Argos still uses large units on with all the items in stock on that site, if they just used a small shop as a display shop but have all the stock in one location they send them out from. So instead of the laminated book of dreams, a code and a cashier, then wait for the Hobbit to collect the item for you, the Mothercare model would be, have a look at the pram, decide they like it, order it online then sent from the one large warehouse for a pick up later or delivered to home. So no cashiers, no Hobbits on site, no need for huge behind the scenes stock storage.

Argos' model is far more subtle than it appears. Only the "shopfloor" area pays business rates as a retail unit; the remainder is "warehouse." So they get to leverage-up twice - once on the stock:floor ration and again on the business rates when compared with another retailer.

As regards display space, John Lewis have been saying for a couple of years that they can track the relationship between store visits and online sales. Monsoon IIRC rolled-back on a store closure strategy for the same reason - they needed display space in regional towns to drive online sales.

There will potentially be a "showroom" model coming along shortly. The likes of Debenhams, Selfridges, etc. have gone some of the way there - selling concessions. IIRC all Adidas stock in Selfridges belongs to Adidas (SOR or concession) and not the store (my understanding is that the brand is more valuable to Selfridges than not having it, but Adidas doesn't want exposure to Selfridge's poor payment terms, so both sides reach a compromise).

Brands have been "paying" for shelf space in supermarkets for a long time - whether in straight cash-for-shelf-inches or in terms of guaranteed marketing support. Large stores (JLP, Debenhams, etc.) will require many brands to underwrite or make contributions to markdown (insulating themselves from poor sellers).

The model is slowly moving towards pay-to-play operations. Whether there will be well-known brands as "curators" of whether we'll see an alternate entrant (Amazon, say), or wholly-new players offering display space remains to be seen.

[anonymous-user]

SydneyBridge said:

People wil always have babies so they will survive.
They need to get it right what they should sell and what to not bother with..

I would always buy big things from Mothercare, prams, cars seats etc. The staff are also pretty knowledgeable and can try prams and cars seats out and see if will fit in car.

Baby clothes though, much cheaper and bettter places

The thing is, there is no actual need to go to Mothercare anymore. Nappies, formula, bottles, sterilisers, toys, clothes etc can all be bought cheaper at any big super market.

Their furniture is ridiculously expensive, and in my experience from 8 years ago not that great quality. In retrospect I would have rather just got it from Ikea for a third of the cost.

Prams, car seats etc. if I want to physically see it and have the nice shopping experience I will go to John Lewis and then buy online if I can find it cheaper.

In my experience Mothercare is the place you go to when you are pregnant with you first child and all excited. You buy a few cute clothes and a towel with a bear hood but never actually go back.

Kiddicare was the first big online baby supply retailer and they couldn't make a go of it.

JoJo Maman Bébé have 70 stores (Mothercare will have 77 after these store closures) and pretty much has the middle class yummy mummy market sewn up.

Mothercare are neither one thing or the other, can't compete with the supermarkets on price and can't compete with JoJo Maman Bébé on status. I predict they will be toast in a year or two.

[nmd87]

Joey Deacon said:

In my experience Mothercare is the place you go to when you are pregnant with you first child and all excited. You buy a few cute clothes and a towel with a bear hood but never actually go back.

Somewhat agree having just had our first child. Looked at pushchairs there but ended up buying a more suitable product from Mamas and Papas. The experience was slightly more polished. We did buy the furniture from Mothercare, but returned it as the quality wasn't particularly good.

Having said that, got some excellent service from Mothercare when buying a car seat, so they got our business for this.

I would personally not spend an hour in a shop getting help from the staff and then go and order online from a different seller. However there's only so many big purchases where the service and advice is important. Smaller purchases such as clothing where quality and price is important but advice/service less so, and Mothercare are struggling to compete with supermarket lines such as Sainsbury's TU.

[alangla]

FourWheelDrift said:

the Mothercare model would be, have a look at the pram, decide they like it, order it online then sent from the one large warehouse for a pick up later or delivered to home. So no cashiers, no Hobbits on site, no need for huge behind the scenes stock storage.

This is pretty much the model they have as far as I can see! When myself & SWMBO were looking for a pram, we liked the look of one we'd seen on Mothercare's website, visited a store to look at it and were about to order it online as we had cashback on our credit card via their website - they were able to match the equivalent of the cashback in-store, so we ordered in-store thinking we'd be leaving with it.
Yodel dropped it off a day or two later (intact, though they sent a different driver out on the same day with the adaptor prongs we'd ordered at the same time to fit the Recaro baby seat on top of the frame).

[Sa Calobra]

One way to look at things is these behomeths strangled smaller competition in their time. Grew on the back of small retailers and changed the high St themselves.

We are seeing a change again and it's not a bad thing as these big businesses didn't exactly offer the best product etc etc at their end did they?

[kingston12]

Sa Calobra said:

One way to look at things is these behomeths strangled smaller competition in their time. Grew on the back of small retailers and changed the high St themselves.

We are seeing a change again and it's not a bad thing as these big businesses didn't exactly offer the best product etc etc at their end did they?

The problem is, what will happen to the High Street itself? Most of these big retailers are being killed by online competition and part of that is due to the high cost of retail space.

It would be great to see smaller retailers making a comeback to fill the gap, but all I am seeing at the moment is vacant premises, charity and vape shops.

[Sa Calobra]

It'll come full circle.

Councils will panic. The public sector take forever to think of something. They'll pay expensive consultants to tell them the obvious that alot of their staff will have been saying..

The result will be zones where help is given to small businesses, zero initial business rates etc and we'll see the start of the cycle again.

No one in the UK would shop 100% online. Humans like tacticel, get out there, wander, browse.

We are just tired of what's become tired on the high St, getting there and the hassle of access.

Soon as we are given a viable solution to access to centres again we'll be there in droves.

It'll take the critical health of the high St before this happens.


Agree?

[kingston12]

Sa Calobra said:

It'll come full circle.

Councils will panic. The public sector take forever to think of something. They'll pay expensive consultants to tell them the obvious that alot of their staff will have been saying..

The result will be zones where help is given to small businesses, zero initial business rates etc and we'll see the start of the cycle again.

No one in the UK would shop 100% online. Humans like tacticel, get out there, wander, browse.

We are just tired of what's become tired on the high St, getting there and the hassle of access.

Soon as we are given a viable solution to access to centres again we'll be there in droves.

It'll take the critical health of the high St before this happens.


Agree?

It's certainly what I'd like to see happen. Commercial landlords and the pension funds that own a lot of the retail space will need to work out how they live in a world of lower rents as well as councils lowering the business rates.

I definitely agree that a lot of people like the experience of shopping, but price is king. I am not personally that wedded to going into a physical shop and I'd say at least 90% of my spending is online. The longer the High Street declines, the more people will get used to the convenience of having everything delivered to their doors. They might want that shopping experience, but it will take skill and keen pricing to tempt them to spend the bulk of their money there.

[talksthetorque]

It won't be long before most Industrial town centres are a continuous line of Greggs and Bookies.

[captain_cynic]

Sa Calobra said:

We are just tired of what's become tired on the high St, getting there and the hassle of access.

Agree?

This.

I was walking through Reading town centre the other day and thought... "This isn't such a bad place, why don't I come here more often?" and it dawned on me almost instantly that I'd need to either take PT through heavy traffic or drive through heavy traffic, pay a kings ransom to park on the outskirts and walk.

The only reason I was in Reading town centre was because my car is having some work done and I was on PT anyway.

One thing I miss from Oz are shopping centres (AKA a "mall" in En_Incorrect) because they were easy to access, had a large variety of stores and abundant (and often free) parking. You could load up a trolley and take it to your car similar to Tesco, Sainsbury, et al. but you'd have all the stores of a high street to shop at.

Alas the ship has sailed and everyone has gotten used to buying online. You're better off closing that high street store and offering free delivery to get the punters in (well, clicking). The only reason I visit a high street is to eat.

[tim0409]

I'm not sure if the book has been previously mentioned in this thread, but I'm coming to the end of "Damaged Goods. The Inside Story of Sir Philip Green, the Collapse of BHS and the Death of the High Street" and it's been a fascinating read. I would highly recommend it; Phillip Green really does come across as an odious bully...no great surprise though.