Companies That You Expect to Disappear Soon

[richw]

I believe because it entered administration it means SD can buy parts from the administrators... pretty sure I heard reported they hadn’t purchased the debt!

 

[Iskra]

I don’t like Mike Ashley, but a lot of people don’t seem to realise he owns Flannels as well as a whole host of premium brands. So it isn’t guaranteed that he’s going to turn it into some bargain basement operation.

HoF does need efficiencies to survive, their wage bills must be huge and 5 days a week the staff seem to be stood around doing very little. I’m not sure he’s the man who’s going to turn it around, but at least he’s stumped up the cash and is giving it a go.

 

[Smethwickian]

I don’t like Mike Ashley, but a lot of people don’t seem to realise he owns Flannels as well as a whole host of premium brands. So it isn’t guaranteed that he’s going to turn it into some bargain basement operation.

HoF does need efficiencies to survive, their wage bills must be huge and 5 days a week the staff seem to be stood around doing very little. I’m not sure he’s the man who’s going to turn it around, but at least he’s stumped up the cash and is giving it a go.

Ashley also owns 30per cent of Debenhams and I'm sure I read recently he's been arguing with other players in that chain about getting his other brands into its stores. Be interesting to see if these concessions start appearing prominently in remaining HoF stores.
If Ashley were to gain enough of a controlling interest in Debnhams, imagine the permutaions for a wholesale consolidation/rationalisation of the various Ashley chains on our high streets.
Birmingham's HoF was among those slated for closure in the announcement last month and it's not entirely shocking. Times change and city centres change. The footfall focus in central Birmingham has shifted towards the Bull Ring and Grand Central, leaving its HoF a wee bit out on a limb when shoppers have Selfridges, Debenhams and John Lewis very close together and Harvey Nichols only a little way away.

 

[bnm]

Ashley also owns 30per cent of Debenhams

29.7%.

Its an important difference. If he owned 30% he'd be required by law to launch a takeover bid.

 

[Darandio]

29.7%.

Its an important difference. If he owned 30% he'd be required by law to launch a takeover bid.

And i've no doubt he is sat just under the threshold because he is biding his time .

 

[bnm]

And i've no doubt he is sat just under the threshold because he is biding his time .

I think he might be looking to sell the Debenhams shares soon. Debenhams has underperformed, he paid over the odds for the shares in a complicated deal linked to his sports brands. Consequently Sports Direct took a big hit on profits.

 

[Islineclear3_1]

WH Smith need to up their game. Most of the stores I've been to are tired, untidy and the staff don't seem remotely interested. I am surprised they are still around on the High Street and have often wondered if they have just been shorn up with the acquisition of some of the Post Offices

I can't remember the last time I shopped in Debenhams but surprised they are still busy in some places

Slightly OT but why are many BHS stores still standing empty - why haven't they been sold off?

 

[Clip]

Slightly OT but why are many BHS stores still standing empty - why haven't they been sold off?

Who is out there to rent them?

 

[Kite159]

WH Smith need to up their game. Most of the stores I've been to are tired, untidy and the staff don't seem remotely interested. I am surprised they are still around on the High Street and have often wondered if they have just been shorn up with the acquisition of some of the Post Offices

I can't remember the last time I shopped in Debenhams but surprised they are still busy in some places

Slightly OT but why are many BHS stores still standing empty - why haven't they been sold off?

I can see some high street WH Smith stores closing in the next couple years, the ones which don't make money (i.e. large old building which costs an arm & a leg to heat, expensive leases, poor footfall etc), but they will still be around in stations & airports.

------

As for BHS stores, it's finding the right tenant.

 

[Mag_seven]

I can see some high street WH Smith stores closing in the next couple years, the ones which don't make money (i.e. large old building which costs an arm & a leg to heat, expensive leases, poor footfall etc),

Most of these stores in my experience seem to be full of people browsing through newspapers, magazines and books without actually buying them.

 

[underbank]

Most of these stores in my experience seem to be full of people browsing through newspapers, magazines and books without actually buying them.

Now most "corner" newsagents have been closed down, and the supermarkets only stock the most popular magazines, the WHS stores are usually the only places to buy the more niche magazines, i.e. for hobbies etc., so there's still an awful lot of business in that market, and magazines are quite high margin.

 

[47513 Severn]

Magazines aren't huge money spinners in the whole scheme of things. Retailers typically pay 75% of the cover price. The big advantage is that they are on a sale or return arrangement, meaning no excess stock to discount or write off. They are also periodical so get customers through the door regularly. The 'while I'm here' purchase of other things can be very lucrative indeed.

For WHS the biggest margins are likely to be on the infrequent purchases such as stationery, board games etc where people don't really know what is a good or bad price, just that Smith's would be the place to get them.

Boots are in a similar position, pretty much everything they sell can be got cheaper elsewhere (and frequent purchasers will do so) but for one off purchases of health and beauty products they are simply the first place most people think of.

Both WHS and Boots are reasonably well placed in terms of the customers they serve and their competition. The High Streets are becoming saturated with discounters and clothes shops who are struggling as a result.

 

[bramling]

Magazines aren't huge money spinners in the whole scheme of things. Retailers typically pay 75% of the cover price. The big advantage is that they are on a sale or return arrangement, meaning no excess stock to discount or write off. They are also periodical so get customers through the door regularly. The 'while I'm here' purchase of other things can be very lucrative indeed.

For WHS the biggest margins are likely to be on the infrequent purchases such as stationery, board games etc where people don't really know what is a good or bad price, just that Smith's would be the place to get them.

Boots are in a similar position, pretty much everything they sell can be got cheaper elsewhere (and frequent purchasers will do so) but for one off purchases of health and beauty products they are simply the first place most people think of.

Both WHS and Boots are reasonably well placed in terms of the customers they serve and their competition. The High Streets are becoming saturated with discounters and clothes shops who are struggling as a result.

It’s interesting you mentioning stationery from WHS, as I was thinking only the other day that it’s probably over a decade since I bought any such from them. If I want high-quality stuff I will get it from Rymans (which is much better quality and not actually much more than WHS), and for run-of-the-mill stuff I can get it from Tesco’s at a fraction of the price. Maybe I’m untypical, but for me WHS certainly isn’t the default stationery retailer.

 

[Islineclear3_1]

Who is out there to rent them?

Sports shops, supermarkets, Primark, TK Maxx, John Lewis, designer outlets etc...etc....

 

[Islineclear3_1]

If I want high-quality stuff I will get it from Rymans (which is much better quality and not actually much more than WHS), and for run-of-the-mill stuff I can get it from Tesco’s at a fraction of the price. Maybe I’m untypical, but for me WHS certainly isn’t the default stationery retailer.

Funny that...I use my local Ryman with whom I'm on first name terms with a couple of (good) assistants and the manager. I am always greeted, asked "how are you?" etc and if I need anything I can't find, in a rush or need to order, they are so helpful.

I wouldn't get this service in my local WH Smith whom (with respect) only seem to employ teenagers on part-time shifts who look bored or stand chatting to one another

OT, I remember going for my first ever job at WH Smith when I left school where the minimum qualifications were 5 O levels (yes O levels, not GCSEs)

 

[Bletchleyite]

It’s interesting you mentioning stationery from WHS, as I was thinking only the other day that it’s probably over a decade since I bought any such from them. If I want high-quality stuff I will get it from Rymans (which is much better quality and not actually much more than WHS), and for run-of-the-mill stuff I can get it from Tesco’s at a fraction of the price. Maybe I’m untypical, but for me WHS certainly isn’t the default stationery retailer.

WHS, outside of stations, appears to have become a purveyor of vouchers you don't want and slightly discounted chocolates. (I must admit to being partial to those Thorntons mini bags for a quid, though I always hack them off by refusing the vouchers).

 

[Bletchleyite]

Most of these stores in my experience seem to be full of people browsing through newspapers, magazines and books without actually buying them.

It isn't called the WHS Reading Room in some circles for nothing!

 

[underbank]

Magazines aren't huge money spinners in the whole scheme of things. Retailers typically pay 75% of the cover price.

25% margin is actually very attractive. Average gross profit percentage for general/convenience stores selling generally high volume low price items is far less than that.

 

[Clip]

Sports shops, supermarkets, Primark, TK Maxx, John Lewis, designer outlets etc...etc....

Yet still these stores are lying empty..... That should speak volumes to you.

 

[Kite159]

25% margin is actually very attractive. Average gross profit percentage for general/convenience stores selling generally high volume low price items is far less than that.

But I would imagine most magazines are low volume sales

 

[EM2]

I don’t like Mike Ashley, but a lot of people don’t seem to realise he owns Flannels as well as a whole host of premium brands. So it isn’t guaranteed that he’s going to turn it into some bargain basement operation.

Maybe have a look at the state of Lillywhites at Piccadilly Circus since he bought it.

 

[nlogax]

Maybe have a look at the state of Lillywhites at Piccadilly Circus since he bought it.

It is indeed the West End's largest jumble sale. Makes your typical TK Maxx look a like temple of minimalism.

 

[gswindale]

Sports shops, supermarkets, Primark, TK Maxx, John Lewis, designer outlets etc...etc....

Supermarkets and Designer outlets would mostly not be interested in former BHS sites due to the lack of on site parking.

Most towns that had a BHS also have a TK Mass elsewhere in town. Why move? The only reason would be a lease event and suitable incentives to make it worth the costs involved in fitting out a new store. This would also apply to stores such as Primark - noting that they did move into the former BHS in Reading.

There isn't the demand in general for such large stores anymore. The most viable option is either for multi let shops on the ground floor with resi conversions above.

 

[greyman42]

I think Burger King downsized a bit a few years ago but seem to have done fairly well since then, they're quite decent across the pond, surprisingly McDonalds aren't as great stateside in my experience!

Five Guys is something else that is a decent enough idea in the USA but I have no idea how it has expanded so much in the UK and manages to survive! They always seem empty which isn't a surprise considering the prices charged! Granted the food is reasonable but you're approaching sit down restaurant prices!

I was at Canary Wharfe and Five Guys and Byron were doing a roaring trade with long queues but I suppose the majority working there will be very well paid.

 

[underbank]

But I would imagine most magazines are low volume sales

Individually yes, but collectively no. Each store will sell hundreds of magazines each day. It all adds up.
They wouldn't devote so much floor/shelf space if it wasn't worth it. They need the full range to attract shoppers in - it's the only "go to" shop these days if you want a less popular title or want to choose from a range of titles for your own hobby/interest/niche.

 

[route101]

I was at Canary Wharfe and Five Guys and Byron were doing a roaring trade with long queues but I suppose the majority working there will be very well paid.

Yes , Five Guys ive been in recently have been quiet , Nottingham and Glasgow Silverburn , certainly at the weekends and lunch a lot busier .

 

[DarloRich]

WH Smith need to up their game. Most of the stores I've been to are tired, untidy and the staff don't seem remotely interested. I am surprised they are still around on the High Street and have often wondered if they have just been shorn up with the acquisition of some of the Post Offices

WH Smith high street stores are performing badly. The business is held up by a stronger performance of the captive market stores ( airports, railway stations and service stations)

 

[Mag_seven]

it's the only "go to" shop these days if you want a less popular title or want to choose from a range of titles for your own hobby/interest/niche.

Although I was quite surprised to see a full range of railway magazines at my local Tesco "Extra" store.

 

[greyman42]

WH Smith need to up their game. Most of the stores I've been to are tired, untidy and the staff don't seem remotely interested. I am surprised they are still around on the High Street and have often wondered if they have just been shorn up with the acquisition of some of the Post Offices

The store in York has recently been refurbished and is nice and tidy. With York's tourism and relative affluence, perhaps they pick and choose which ones to spend money on.

 

[cactustwirly]

The store in York has recently been refurbished and is nice and tidy. With York's tourism and relative affluence, perhaps they pick and choose which ones to spend money on.

The Reading store has been refurbished too.
The Leicester store is a bit tired, but the staff are helpful IME