Two more retail companies look doomed

Shopping on Market Street of a Saturday was always a chore. Busy as anything but even more so with market stalls in the middle. It’d take forever to get around.
 
They will be the first of many this coming year. Brexit uncertainty is stopping people spending money. The Car industry, High Street, Travel and Restaurant Industry will all be hit. I’ve usually booked an Easter holiday by now but just waiting to see what pans out first.
 
Millwallawayveteran1988 said:
They will be the first of many this coming year. Brexit uncertainty is stopping people spending money. The Car industry, High Street, Travel and Restaurant Industry will all be hit. I’ve usually booked an Easter holiday by now but just waiting to see what pans out first.
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I had the misfortune to have to take a pair of trainers back to the Trafford centre on Boxing Day. It was total carnage. Fucking hate the sales. Was in and out in ten minutes.
 
kippaxwarrior said:
Just been announced HMV are about to go into administration for the 2nd time in 6 years. 2200 jobs at risk
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Streaming killed HMV off as a business model, what else could they sell to compensate for the music sales they used to stack up over the years. Unfortunately we are now slaves to our Amazon, Netflix and Spotify overlords.
 
Millwallawayveteran1988 said:
They will be the first of many this coming year. Brexit uncertainty is stopping people spending money. The Car industry, High Street, Travel and Restaurant Industry will all be hit. I’ve usually booked an Easter holiday by now but just waiting to see what pans out first.
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Sadly, I think you're right.

That said, it's hard to put a finger on the exact issue, lumping it under Brexit is probably a bit lazy. I think a lot of people have been on a credit binge since the last recovery and now they're all spent up. In my business we've seen a drop in sales, for no rhyme or reason. Last Christmas was incredible for us, but after January this year things have been poor. Various other people in ecommerce, across different niches, have all remarked the same. On the surface people are banging the drum and talking about how great they're doing, but behind closed doors, a lot of internet retailers are acknowledging a pretty poor year.

It was interesting to see ASOS put out a profit warning - then you've got the likes of Missguided who've made a loss this year, for the first time ever. I think government will have to sit up and take notice soon, I think this year will probably be a poor year for corporation tax receipts.

As I said, lumping it all under the Brexit catch all is a bit lazy. I think the key cause is people are all spent up on credit. And although the majority of people don't read the FT and wouldn't let the threat of a no deal Brexit impinge on a decision to buy a new sofa, TV or garment - something has clearly spooked them. Or, perhaps people are just over stretched when you factor in stagnant wages over the last decade or so. The price of everything has gone up, but wages have barely moved!

Interesting times lay ahead...
 
kippaxwarrior said:
Seems to me more and more retailers just cannot compete with the internet or cheap supermarkets and I think more retailers will go before the end of the year.
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Agreed.

Online purchasing is convenient, inexpensive, fast and easy. Strictly brick and mortar firms are doomed absent some sort of compelling reason for shoppers to personally visit their stores.
 
Millwallawayveteran1988 said:
They will be the first of many this coming year. Brexit uncertainty is stopping people spending money. The Car industry, High Street, Travel and Restaurant Industry will all be hit. I’ve usually booked an Easter holiday by now but just waiting to see what pans out first.
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I'd say its little or nothing to do with Brexit and everything to do with a long term structural change in how we shop. HMV is particularly negatively impacted because the things they sell have moved online extremely rapidly. Movies & music aren't being physically bought by an increasing number of people (even FOCs like me) so they were always going to be doomed. Other recent casualties such as Toys R Us, Maplins, Phones 4 U etc had an unsustainable business model or saw their business moving to online competitors. All either closed before Brexit or would have done so anyway.
 
Millwallawayveteran1988 said:
They will be the first of many this coming year. Brexit uncertainty is stopping people spending money. The Car industry, High Street, Travel and Restaurant Industry will all be hit. I’ve usually booked an Easter holiday by now but just waiting to see what pans out first.
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The brexit argument is a lazy one as the poster above says. It’s been coming for years now. With online shopping and the fact there’s just too many shops
 
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