First retail ‘name’ to pop off 2018
Discussion
For CW the thing is now if but when, given the current divided would you say it'll be around in 10 years time and still worth something?
If so the dividend will cover your initial
However, the store estate is decent (not many s
tty leases) so they can actually restructure easily enough...
If so the dividend will cover your initial
However, the store estate is decent (not many s
tty leases) so they can actually restructure easily enough...kiethton said:
For CW the thing is now if but when, given the current divided would you say it'll be around in 10 years time and still worth something?
If so the dividend will cover your initial
However, the store estate is decent (not many stty leases) so they can actually restructure easily enough...
Would you mind re-posting that with the correct words?If so the dividend will cover your initial
However, the store estate is decent (not many s
tty leases) so they can actually restructure easily enough...Eric Mc said:
kiethton said:
For CW the thing is now if but when, given the current divided would you say it'll be around in 10 years time and still worth something?
If so the dividend will cover your initial
However, the store estate is decent (not many stty leases) so they can actually restructure easily enough...
Would you mind re-posting that with the correct words?If so the dividend will cover your initial
However, the store estate is decent (not many s
tty leases) so they can actually restructure easily enough...
Harry Biscuit said:
Eric Mc said:
kiethton said:
For CW the thing is now if but when, given the current divided would you say it'll be around in 10 years time and still worth something?
If so the dividend will cover your initial
However, the store estate is decent (not many stty leases) so they can actually restructure easily enough...
Would you mind re-posting that with the correct words?If so the dividend will cover your initial
However, the store estate is decent (not many s
tty leases) so they can actually restructure easily enough...Basically carphone Warehouse is fine for now IMO, part of the new Dixons Carphone PLC post merger. The lease estate isn't onerous and outstanding lease lengths are short - they're bringing CW stores into larger ones and closing duplicates to save cash. Also shorter lease lengths allows easier restructuring should it be required. It's also pretty profitable despite being a stable/declining market.
With the dividend where it is, do you think it'll still be around in 12 years time? Do you think they're doing ok with their web based service/pricing and margins? I think they'll be ok truth be told.
UK retail sales actually *grew* +2% in 2017. Slightly up or flat (if you factor inflation). The market is kinda doing okay.
What's happening is, people are still spending, but consumer tastes are changing. The deck is being reshuffled.
Big old department stores (like Debenhams) are rapidly going out of fashion, and companies with weak websites and social networks (like Mothercare) are getting hammered.
Folk are switching their spending to easy onliners, food shops, fitness stores and discount buckets, like Amazon, Morrisons, JD Sports, Poundland, etc.
What's happening is, people are still spending, but consumer tastes are changing. The deck is being reshuffled.
Big old department stores (like Debenhams) are rapidly going out of fashion, and companies with weak websites and social networks (like Mothercare) are getting hammered.
Folk are switching their spending to easy onliners, food shops, fitness stores and discount buckets, like Amazon, Morrisons, JD Sports, Poundland, etc.
Fashion retailer East goes into administration. 34 shops.
http://www.cityam.com/279662/high-street-retailer-...
Also this
http://www.cityam.com/278396/retail-administration...
“Retail administrations jumped last year as firms came under intense cost pressures from the national living wage, business rates and the devaluation of sterling.
Research by Deloitte has found that 118 retailers folded in 2017, a jump of 28 per cent year-on-year. It is the first increase in retail administrations for five years, underscoring the difficulties faced by firms.”
http://www.cityam.com/279662/high-street-retailer-...
Also this
http://www.cityam.com/278396/retail-administration...
“Retail administrations jumped last year as firms came under intense cost pressures from the national living wage, business rates and the devaluation of sterling.
Research by Deloitte has found that 118 retailers folded in 2017, a jump of 28 per cent year-on-year. It is the first increase in retail administrations for five years, underscoring the difficulties faced by firms.”
limpsfield said:
Fashion retailer East goes into administration. 34 shops.
http://www.cityam.com/279662/high-street-retailer-...
I did wonder about them, They downsized from a large store in my local town to a much smaller and less prominent one. I don't think I ever saw anyone in there since...http://www.cityam.com/279662/high-street-retailer-...
possibly not a shop many of you will be familiar with , wilkinsons. i did a bit of shopping for my mum in there last week. wanted some brasso , out of stock. i then had a walk round the store , lots of empty spaces on the shelves.
they do not really have a usp , from what i can see. everything they sell is available elsewhere.
for some reason my mum likes shopping there and i hope the empty shelves are down to some logistical glitch rather than something else
they do not really have a usp , from what i can see. everything they sell is available elsewhere.
for some reason my mum likes shopping there and i hope the empty shelves are down to some logistical glitch rather than something else
jas xjr said:
possibly not a shop many of you will be familiar with , wilkinsons. i did a bit of shopping for my mum in there last week. wanted some brasso , out of stock. i then had a walk round the store , lots of empty spaces on the shelves.
they do not really have a usp , from what i can see. everything they sell is available elsewhere.
for some reason my mum likes shopping there and i hope the empty shelves are down to some logistical glitch rather than something else
It always seems halfway between Woolworths and Poundland to me. It's the type of store that would be very useful in small towns where it is difficult to get a lot of the stuff that the sell, but instead they seem to concentrate on having large stores in big towns...they do not really have a usp , from what i can see. everything they sell is available elsewhere.
for some reason my mum likes shopping there and i hope the empty shelves are down to some logistical glitch rather than something else
jas xjr said:
possibly not a shop many of you will be familiar with , wilkinsons. i did a bit of shopping for my mum in there last week. wanted some brasso , out of stock. i then had a walk round the store , lots of empty spaces on the shelves.
they do not really have a usp , from what i can see. everything they sell is available elsewhere.
for some reason my mum likes shopping there and i hope the empty shelves are down to some logistical glitch rather than something else
Is that Wilko?they do not really have a usp , from what i can see. everything they sell is available elsewhere.
for some reason my mum likes shopping there and i hope the empty shelves are down to some logistical glitch rather than something else
We had one near us when we lived in Fulham. Loved that shop! Saved us a fortune so we could spunk it all on rent instead.
Happy times.
Homebase - http://www.bbc.co.uk/news/business-42942922
Looks to be closing 40 stores and the owners have written down its value by £454m, despite only paying £340m for it in 2016.
Apparently it expects to lose £97m in the first half of 2018.
Having been in one recently I am surprised the losses are that small. It is in a shocking state. It was always well behind B&Q with the stores being old fashioned and quite grubby with random cheap chipboard furniture for sale, however some of their own brand stuff was reasonable such as paintbrushes. All of that has now been replaced by cheap Chinese crap that even Poundland would turn their nose up at.
Looks to be closing 40 stores and the owners have written down its value by £454m, despite only paying £340m for it in 2016.
Apparently it expects to lose £97m in the first half of 2018.
Having been in one recently I am surprised the losses are that small. It is in a shocking state. It was always well behind B&Q with the stores being old fashioned and quite grubby with random cheap chipboard furniture for sale, however some of their own brand stuff was reasonable such as paintbrushes. All of that has now been replaced by cheap Chinese crap that even Poundland would turn their nose up at.
r11co said:
limpsfield said:
Fashion retailer East goes into administration. 34 shops.
Never heard of it.I know I am not the target demographic but they had no presence I was aware of. I can name several of their still-trading rivals though.....
Shouldn't be a surprise though, apparently second time they've gone into Administration in 3 years. 'High Street' is hardly the correct terminology for a business with 34 shops.
PF62 said:
Homebase - http://www.bbc.co.uk/news/business-42942922
Looks to be closing 40 stores and the owners have written down its value by £454m, despite only paying £340m for it in 2016.
Apparently it expects to lose £97m in the first half of 2018.
Having been in one recently I am surprised the losses are that small. It is in a shocking state. It was always well behind B&Q with the stores being old fashioned and quite grubby with random cheap chipboard furniture for sale, however some of their own brand stuff was reasonable such as paintbrushes. All of that has now been replaced by cheap Chinese crap that even Poundland would turn their nose up at.
All of the stores I believe are going to be re-branded to "Bunnings". So I think we are going to the lose the name Homebase completely.Looks to be closing 40 stores and the owners have written down its value by £454m, despite only paying £340m for it in 2016.
Apparently it expects to lose £97m in the first half of 2018.
Having been in one recently I am surprised the losses are that small. It is in a shocking state. It was always well behind B&Q with the stores being old fashioned and quite grubby with random cheap chipboard furniture for sale, however some of their own brand stuff was reasonable such as paintbrushes. All of that has now been replaced by cheap Chinese crap that even Poundland would turn their nose up at.
The new owners seem to have cleared out a lot of the old Homebase management. They also decided to come out of home furnishing and more more into power tools. The stores are getting refitted as part of a gradual process. Still, annual turnover should still be around £1.5bn so there is a decent amount of sales in which to find some profit.
The conversion to Bunnings for the remaining store estate is now on hold pending a review which is to be expected to be complete by June. They've not ruled out cutting their losses completely in the UK and shutting down.
Wesfarmers managing director has admitted that the issues they're facing are self-induced, namely:
Disappointing to see as Homebase has a lot of good people
Wesfarmers managing director has admitted that the issues they're facing are self-induced, namely:
- Clearing out the existing management structure and replacing it with one which didn't understand the UK market.
- Abandoning big ticket Kitchens and Bathroom ranges
- Underestimating the demand in the UK market for heaters, cleaning and storage during the winter.
Disappointing to see as Homebase has a lot of good people
EddieSteadyGo said:
Still, annual turnover should still be around £1.5bn so there is a decent amount of sales in which to find some profit.
In recent years Homebase profits have always been lucky to be in the high teens to early £20 millions on a turnover of £1.5bn, with a significant proportion attributable to big ticket sales such as kitchens and bathrooms which have now been abandoned.There's not as much margin as you might think in daily DIY supplies when the market has so much choice amongst the big sheds, ebay and Amazon particularly for branded goods which are going to be the same everywhere. It's the same problem which afflicts Toys R Us, people can buy elsewhere cheaper and be reasonably assured it'll be the same thing in the box.
To be fair to Wesfarmers they didn't really have much choice over the loss of key brands and concessions within the Homebase stores (Argos click and collect, Habitat, Schneider etc) as those belonged to Home Retail Group and were not included in the sale to Wesfarmers. However, the conscious decision not to replace those with equivalent ranges is something which they've openly admitted has cost them dearly.
Edited by eltawater on Monday 5th February 13:47
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