Businesses Going Bust

[Darandio]

Quite a few employees is my evidence and yes Woolies is the company i'm on about. We all know the money comes from the Government. However because they had less than 10 weeks notice 'till the store shut, they get the pay. Only people who don't get the redundancy money your on about are those who worked under 2 years or so.

Well, if true, excellent for them. Just not normal practice thats all considering Woolworths shouldn't have any money to pay them with especially since all assets are frozen when they call the administrators in. I can also imagine this may provide a problem with the government payout as well because this will have to be declared. Like I said though, hopefully they get it.

Also, are the workers you talk about long term. There is a bit more about it from their union:-

http://www.usdaw.org.uk/getactive/resource_library/1229511999_9004.html

 

[Pumbaa]

DSG Retail (currys/Dixons/PC World) are in big trouble. PC World is the best performing sector of the group, mainly because the demand for technology such as computers is relatively inelastic, and the demand for computers also goes up in times of economic uncertainty as people are more likely to use them more whilst staying at home.

The poor state of finances at DSG will soon result in refusal from suppliers, which will cripple them.

Another one to watch for that's kept quiet is Boots. They look to be alright for a while, but I would not hesitate in saying that they will scale back drastically later this year to avoid being brought to their knees.

 

[class 313]

DSG Retail (currys/Dixons/PC World) are in big trouble. PC World is the best performing sector of the group, mainly because the demand for technology such as computers is relatively inelastic, and the demand for computers also goes up in times of economic uncertainty as people are more likely to use them more whilst staying at home.

The poor state of finances at DSG will soon result in refusal from suppliers, which will cripple them.

Another one to watch for that's kept quiet is Boots. They look to be alright for a while, but I would not hesitate in saying that they will scale back drastically later this year to avoid being brought to their knees.

Remember, Dixons doesn't exist any more...

 

[Gizmogle]

http://www.dixons.co.uk/

Plus I've seen a few in towns before.

 

[class 313]

http://www.dixons.co.uk/

Plus I've seen a few in towns before.

http://en.wikipedia.org/wiki/Currys.digital

Well of course you would of seen it in downs before, because it was Dixons, before!

 

[Gizmogle]

Yeah, but I've seen some after they become Currys.

 

[class 313]

Yeah, but I've seen some after they become Currys.

Yes, but they don't trade under Dixons officially.

 

[Max]

http://en.wikipedia.org/wiki/Currys.digital

Well of course you would of seen it in downs before, because it was Dixons, before!

Actually, a number of Dixons shops still operate in airports, in addition to the online business which is still called Dixons. Profits for DSG (the Currys/PC World parent company) crashed over this year, with first half financial year losses of £30m (see http://news.bbc.co.uk/1/hi/business/7751786.stm). To be honest, I generally find their customer service poor and their prices uncompetitive. However, I can't see them going bust overnight 'a la Woolies', as at least they have some kind of focus in the market.

WHSmith has been struggling for years, but for some things they are very competitive.
HMV is a retailer that has bounced back. Their prices are now pretty competitive with the big online retailers and this is shown in their profits, which have been growing recently. It's all about reworking the business for changing times. Yes, internet shopping has exploded recently, illustrated by the fact that many online businesses had their best Christmas ever in 2008. And the high street is going to have to keep up with this to survive. But, at the end of the day, there will always be a demand for going out and shopping as a leisure activity, particularly for goods such as clothes where it is difficult to purchase with confidence online. The high street will always be there.

There were always going to be casualties in a recession. The economy is shrinking (deflation), prices are falling and consumers no longer have any confidence. This lack of consumer confidence means consumers and banks alike are hoarding money, saving instead of spending, not lending. People are more likely to save money for essentials such as mortgages instead of spending on luxury goods. Aggregate demand in the economy falls and businesses cut production and lay off staff. Then you get the vicious circle where people have less disposable income as a result, meaning less spending and even more cuts in production, thus eventually leading to the collapse of some firms.

 

[Mojo]

Remember, Dixons doesn't exist any more...

They do - as Gizmogle says they only trade under that name at http://www.dixons.co.uk/

 

[class 313]

They do - as Gizmogle says they only trade under that name at http://www.dixons.co.uk/

As well as running the Currys and PC World chains in the UK, DSG trades as Elkjop in the Nordic region and UniEuro in Italy.

Nothing about Dixons

 

[Max]

Nothing about Dixons

I don't see your point... :?

 

[class 313]

I don't see your point... :?

The shops are retained in Airports/Ireland yes. Also the website, but Its still Currys Digital but still got the Dixons name, think of it as a fake Dixons...

 

[Mojo]

Nothing about Dixons

Well it's a common fact that they are part of the same group. When you go to Dixons website and click "Corporate website" it takes you to DSG's website and if you follow the links from the "Our Brands" page you get this which lists one of their brands as "Dixons.co.uk." Therefore, the brand Dixons is part of DSG international.

 

[Coxster]

Face facts Loader - you're just wrong...

 

[class 313]

Face facts Loader - you're just wrong...

Can that even be possible?

 

[Craig]

Can that even be possible?

Yes, it happens frequently

 

[class 313]

Yes, it happens frequently

Damn shame that

 

[Phoenix]

I think honestly it's almost like natural selection those who arn't fit to survive don't and well woolies was doing pretty bad as they never quite had the plan on how to appeal to the current generation of shoppers.
But I was interested that it was mentioned earlier that things are becoming much cheaper online which is definatly true and seems to indicate that just maybe in time to come many people will simple just not go out shopping anymore.
Me and my girlfriend do it all the time but I seriously consider in these winter months just doing it all online because except my magazines I can buy almost anything online these days just not the fast food.

 

[Darandio]

I think honestly it's almost like natural selection those who arn't fit to survive don't and well woolies was doing pretty bad as they never quite had the plan on how to appeal to the current generation of shoppers.
But I was interested that it was mentioned earlier that things are becoming much cheaper online which is definatly true and seems to indicate that just maybe in time to come many people will simple just not go out shopping anymore.
Me and my girlfriend do it all the time but I seriously consider in these winter months just doing it all online because except my magazines I can buy almost anything online these days just not the fast food.

Well, I am pretty sure you can get your magazines done now, even without subscription, plus theres always the good old newsagent to deliver which might be a good idea to help them stay open. As for fast food, depends on what you want, obviously there are your pizzas, chinese and indians delivering but I wouldn't discount a McDonalds delivery service in the near future!

 

[Phoenix]

Well, I am pretty sure you can get your magazines done now, even without subscription, plus theres always the good old newsagent to deliver which might be a good idea to help them stay open. As for fast food, depends on what you want, obviously there are your pizzas, chinese and indians delivering but I wouldn't discount a McDonalds delivery service in the near future!

So if no one wants to go out shopping what happens to the love of our lives the railways.

But Well we will always have our specialist stores like the model railway shops,Newsagents,Cafes and generally those shops which make a decent turnover but would never really expand.

 

[Metroland]

Most train travel is not for shopping, its visiting friends/relatives/days out/business.

I think a lot of shop closures is to do with the internet/supermarkets as well as 'lack of credit'.

Pubs/Post offices closures are obviously partly down to the internet and cheap supermarket booze.

In the next ten years I suspect we'll see the death of many high street shops, pubs, etc. Replaced by more specialist shops, or not at all. Newspapers are going, traditional TV and radio, many magazines. In the end its going to be down to the consumer, I am trying to make use of local model shops, traditional magazines and pubs as these things I want to keep. I'm undecided about supermarkets, I'm not impressed to hear than UK food is going out of fashion as it is more expensive, and cheap factory farmed goods are being imported from aboard with animals reared in bad conditions. I also question the amount of jobs/pollution we export by cheap foreign goods, or the conditions of workers in those countries.

But we do so love our cheap/convenient don't we, until its part of the problem?

I'll be quite straight with you, I don't like mega large companies, too much government control, I would prefer decent conditions for people/animals and pay a more for things to last longer and sourced more locally, and get rid of the throwaway society and quality of life to be looked at rather that account book economics. I don't think I'm alone, but much will be down to consumer choice as I said.

 

[WillPS]

These shops that are going under are only places that have been brinkering on the edge for a long time now, with the recession just giving them that tap they need to fall in. Woolworths was lumbered with a load of debts and mistakes from the Kingfisher group when it was sold off, as such the writing was pretty much on the wall for poor old Woolies. Had Kingfisher managed to take over ASDA in the late 90s, I think the story would have been different - Kingfisher sold all the Woolies physical shops in a sale and leaseback arrangement (a pretty crappy one at that) and borrowed heavily against both the Woolworths division (which at the time also included MVC) and Comet, all to increase their cash balance so as to purchase ASDA.

The idea was that the debt would then be moved over to ASDA, and the benefits of a merger (economies of scale) would pay them off. For example, the George brand was to find its way in to Woolworths, and the Ladybird brand would have been represented in ASDA.

Zavvi is another example. Virgin group effectively chucked money at it for a good number of years before seperaton, and the lack of a key supplier (EUK, part of Woolworths Group) was enough to prevent them from paying their debts off, plunging the company in to administration.

It's a shame, even though Woolies had been left to stagnate under Kingfisher, the shops which opened and received a facelift since the takeover were rather nice, Chesterfield is one prime example in my mind. Lovely ambience, definite shopping buzz about the place. A shame then that they didn't manage to get this plan rolled out quicker. Similarly with Zavvi, the shops which received the Zavvi treatment have become much nicer places than they were under Virgin Megastores, with an 'independence' about them which I've only found previously at FOPP (now effectively HMV).

 

[Aussie_Rail]

I watched on the local news here last night that Waterford/Wedgewood had gone into recievership and that they had been making a loss for the last 6 years and they at the moment looking for a buyer.

If they do go down, does that mean they will stop production? And If they are likely to be bought, is their a chance they might be bought by China or India?