Two more retail companies look doomed

[BimboBob]

I keep seeing people shrugging and saying adapt or die but these collapses point to a deeper economic malaise in the UK with companies operating on tiny margins, affected by high business rates from cash strapped councils, recent changes in employment laws like the workplace pension legislation which is good news for the employee but imposes an extra burden on businesses that can't take it. Add in stagnant wages growth - if there is only the same amount of money coming into a household over a given period which has been subject to inflation that means that inevitably there is less cash available to spend on retail.

The biggest issue is the loss of jobs - most of these will be low paid low skilled jobs the type that Brexit is supposed to protect from being swamped by migrant workers who depress wages. Fat lot of good that will be if those jobs just go.

No. It's called buying games online. The digital age. Like Blockbuster going under. Or all those record shops in the early 90's. As we progress we move on. You adapt or die. Companies that have gone under or are close to usually lagged behind with web design or an online footprint.

Look at the amount of parcels that get delivered to homes now. Royal Mail now makes its money from parcel delivery.

The high street suffers though, boarded up, as people flock to out of town concrete shit holes or do it from their own home.

Still, more parcels means more jobs.

 

[Bert Trautmanns Helemet]

I keep seeing people shrugging and saying adapt or die but these collapses point to a deeper economic malaise in the UK with companies operating on tiny margins, affected by high business rates from cash strapped councils, recent changes in employment laws like the workplace pension legislation which is good news for the employee but imposes an extra burden on businesses that can't take it. Add in stagnant wages growth - if there is only the same amount of money coming into a household over a given period which has been subject to inflation that means that inevitably there is less cash available to spend on retail.

The biggest issue is the loss of jobs - most of these will be low paid low skilled jobs the type that Brexit is supposed to protect from being swamped by migrant workers who depress wages. Fat lot of good that will be if those jobs just go.

Excellent post blue.
It does make you wonder where our kids will be working in the future. What a lot of the piss takers on here fail to grasp is that once a business goes bust it not only doesn't need the low skilled shop workers it also doesn't need the infrastructure of support services. IT people, the logistics people, the marketing people etc etc and that is also knocked on to the suppliers of the business that has gone bust. The domino effect is huge. So it not just unskilled workers who are out of work.

I have no sympathy for some of the high street chains particularly the restaurant / food groups who are also seriously struggling at the moment. They have served up below average food at expensive prices with very poor customer service (Jamie's being a classic example of this) for years. When the market is saturated as it is, people vote with their feet. The only surprise is that anyone is surprised.

Large retailers can not only survive but prosper if they deliver what the customer wants, Zara is an excellent example of this. People literally queue around the shop to get served.

Globalisation is also another factor. Where shops such as Primark can employ slave labour to undercut local manufacturers and put them out of business. Globalisation is the enemy of employment.

As you say eventually the greedy landlords will be forced into acting and allowing local businesses to set back up on the high street. I have little faith or hope that the local councils will ever see the light with business rates and car parking charges. However, that is another discussion...

 

[bluethrunthru]

No. It's called buying games online. The digital age. Like Blockbuster going under. Or all those record shops in the early 90's. As we progress we move on. You adapt or die. Companies that have gone under or are close to usually lagged behind with web design or an online footprint.

Look at the amount of parcels that get delivered to homes now. Royal Mail now makes its money from parcel delivery.

The high street suffers though, boarded up, as people flock to out of town concrete shit holes or do it from their own home.

Still, more parcels means more jobs.

well I am pretty certain the likes of Jamie Olivers restaurants and similar that are closing branches don't do Just Eat deliveries - they are all about the dining experience and are suffering due to the lack of disposable income amongst customers.

A lot of parcels are delivered by companies other than the Post Office and a lot of those jobs are bloody awful - want a day off? Fine pay us £150. Too sick to work today? Fine pay us £150.

 

[bluethrunthru]

Excellent post blue.
It does make you wonder where our kids will be working in the future. What a lot of the piss takers on here fail to grasp is that once a business goes bust it not only doesn't need the low skilled shop workers it also doesn't need the infrastructure of support services. IT people, the logistics people, the marketing people etc etc and that is also knocked on to the suppliers of the business that has gone bust. The domino effect is huge. So it not just unskilled workers who are out of work.

I have no sympathy for some of the high street chains particularly the restaurant / food groups who are also seriously struggling at the moment. They have served up below average food at expensive prices with very poor customer service (Jamie's being a classic example of this) for years. When the market is saturated as it is, people vote with their feet. The only surprise is that anyone is surprised.

Large retailers can not only survive but prosper if they deliver what the customer wants, Zara is an excellent example of this. People literally queue around the shop to get served.

Globalisation is also another factor. Where shops such as Primark can employ slave labour to undercut local manufacturers and put them out of business. Globalisation is the enemy of employment.

As you say eventually the greedy landlords will be forced into acting and allowing local businesses to set back up on the high street. I have little faith or hope that the local councils will ever see the light with business rates and car parking charges. However, that is another discussion...

The problem with rates is that central govt is squeezing local govt who need to raise income and so raise rates as far as they are allowed to. ( that means central Govt can "blame" local govt inefficiencies ) which is why car parking is expensive too - the same thing happens in hospitals where they are cash starved and end up charging patients a pound an hour for parking

 

[BimboBob]

well I am pretty certain the likes of Jamie Olivers restaurants and similar that are closing branches don't do Just Eat deliveries - they are all about the dining experience and are suffering due to the lack of disposable income amongst customers.

A lot of parcels are delivered by companies other than the Post Office and a lot of those jobs are bloody awful - want a day off? Fine pay us £150. Too sick to work today? Fine pay us £150.

They are suffering because there's too many of them. They got greedy. Filling the streets with their average food and shite service. Of course Just eat etc etc have something to do with it. One app, hundreds of places, all to your door.

Oh...Post Office is not the Royal Mail. Different companies.

 

[bluethrunthru]

They are suffering because there's too many of them. They got greedy. Filling the streets with their average food and shite service. Of course Just eat etc etc have something to do with it. One app, hundreds of places, all to your door.

Oh...Post Office is not the Royal Mail. Different companies.

You know what I meant ref the Post Office - Royal Mail do collect parcels from the Post Office though don't they?

 

[Mike D]

Conviviality going pop won’t impact on Wetherspoons retail prices. As an aside, Bargain Booze were a nasty organisation.

What makes you say that? I know in your line of business that you have had dealings with them. I don't want to get you into any trouble here but what is your beef with them?

 

[BimboBob]

You know what I meant ref the Post Office - Royal Mail do collect parcels from the Post Office though don't they?

Yup. As they do from thousands of businesses every day. It costs. As does everything.

 

[BimboBob]

You know what I meant ref the Post Office - Royal Mail do collect parcels from the Post Office though don't they?

And I do agree with you about rates, rents, councils etc etc it's just there is more to it than that.

 

[Mike D]

The signs for me is that we are teetering on the brink of another recession brexit or no brexit. I work in manufacturing and having seen the likes of customers Palmer and Harvey and Toys are Us go under then you start to wonder. Then you hear that a couple of the Pound boys (not naming names for obvious reasons)you realise that something is a seriously wrong. I am not predicting Armagedon but a recession is looking on the cards.