Retailers facing tough times

[Wintry]

Hi

 

Tough times for retailers according to Insolvency News article....

 

http://www.insolvencynews.com/article/14047/corporate/retail-failures-have-shot-up-by-more-than-a-third

[MARTIN3030]

Yes its not unexpected.

Credit lines from banks are only part of the problem.

There are a number of factors why high streets are suffering.

Many were tied into long leases and face crippling rates.

There was the promotion of out of town retail parks and centres which have took lots of trade from the high street.

Coupled with the economic slowdown,internet sales growth etc then its not hard to see whats happened.

I saw Dixons have recently secured new bank funding for around £400m.

The bulk of that is to secure servicing debts of more than 300m

Many of these big names could not survive without these massive capital injections-yet what sets them aside to a corner shop with a £3k overdraft ?

[Wintry]

Yes its not unexpected.

Credit lines from banks are only part of the problem.

There are a number of factors why high streets are suffering.

Many were tied into long leases and face crippling rates.

There was the promotion of out of town retail parks and centres which have took lots of trade from the high street.

Coupled with the economic slowdown,internet sales growth etc then its not hard to see whats happened.

I saw Dixons have recently secured new bank funding for around £400m.

The bulk of that is to secure servicing debts of more than 300m

Many of these big names could not survive without these massive capital injections-yet what sets them aside to a corner shop with a £3k overdraft ?

 

Hi

 

Thanks for that

 

Interesting points indeed

 

Things not looking rosy at all

[MARTIN3030]

I have a shop myself but specialise.I think that in a recession there are opportunities for small businesses and individuals,but the golden rules for new starters is to keep costs down,and to go into something you know about,and know your competition.You have to also be prepared to forget working 9-5

The internet has its limitations,especially for personal service.

You might get a cable on ebay for £1 less than I am selling,but you have to pay postage and wait 2 days for it.

I have actually bought things from the £1 shops and sold them in mine for £2....it costs a quid to get to the centre and then theres the queuing....so they are not complaining.

The recession also instills old values into people....why is there a need to buy a new plasma tv every 12 months when the old one still works ?

The big ticket items are the ones that will be seeing the likes of Dixons and PC world struggle with selling.

Of course a recession is a dream for buyers of second hand goods as people sell things for a fraction of what they are really worth...but anything is only worth as much as a buyer is prepared to pay.

A recession actually puts the consumer in the driving seat and it is them who call the shots.

My town is saturated by takeaways hairdressers coffee shops and restaurants of every national cuisine.

We used to have a pub on every corner,but now they can be counted on 2 hands.

It is a shame that the boom and bust years of the 80s and 90s have not only taken victims from that era...but have also taken things like pubs which have been part of our heritage and culture since the 1950s and beyond.

[brokebutnotbeatn]

Lots of poignant stuff in there Martin. I had to laugh about the TV. Mine has been on the blink for about 2 years; people are varying shades of green or red depending on its mood at the time. But as I watch it relatively little and can't justify the cost of a new one it's become something of a family joke. luckily my kids are very understanding too!

[MARTIN3030]

Ha Ha I know what you mean.

I bought a large LG CRT TV from Cash Generators second hand about 4 years ago.

It was £250 and I thought it was a bargain.

Its very big and bulky but from the front looks like any Plasma.

After 3 years it developed a fault and I could not get round to fixing it as too busy fixing things for others.A few weeks ago I saw one on ebay in perfect working order and it started at £30.

I had planned to bid but missed the finish....guess what ?

It went unsold as no bidders !!

 

The TV is still here and I goy a 22" Sony triniton from the British heart foundation shop to get me by which cost £15 !!

 

If you go into these shops they cant give older TVs away,and there are rows of portables here going for £7.50.

You would pay more than that for a replacement remote control..........