High Street chain collapse sweepstake
- tillyoshea
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- Location: Newcastle upon Tyne
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It feels to me like something has got to happen with WHSmith soon-ish. The very strong performance of travel stores (revenue up 9%, profits up 10% last year) is being dragged down year after year by the high street estate (revenue down 5%, profits flat last year). It's hard to see investors continuing to tolerate that without some concerted action (e.g. closing the least profitable / loss making stores).
Smiths will continue doing what they've done for years, closing stores at the point they become unprofitable and leases come up (and starving them to drag that out as long as possible).
On a similar note I think it might be the year Homebase is shrunk down to a couple of sites selling off old branded stuff.
On a similar note I think it might be the year Homebase is shrunk down to a couple of sites selling off old branded stuff.
How much are the Post Office contracts holding WHSmith Retail together?
I've noticed a lot of Spars getting Post Office counters installed recently. This could hurt WHSmith as they have longer opening hours.
I've noticed a lot of Spars getting Post Office counters installed recently. This could hurt WHSmith as they have longer opening hours.
"He has to be larger than bacon"
Probably not that much. I'd guess the majority of their stores don't have Post Offices.
I don't reckon the Spars, Premiers and the rest are much of an issue either. The Post Offices WHSmith operate tend to be on high streets where most shops are shut by 6. The convenience stores with longer hours tend to be in neighbourhood locations. I'm all for Post Offices open in the evening though.
- tillyoshea
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- Joined: Sun 23 Nov, 2003 14.34
- Location: Newcastle upon Tyne
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That's not really the picture, though - they're not closing significant numbers of stores, only 2 or 3 a year. In fact, the high street portfolio has gone from 550-ish stores a decade ago to 600-ish stores today.
Only about 150-ish have Post Offices.WillPS wrote:I'd guess the majority of their stores don't have Post Offices.
Post Offices don't need to keep the same hours as the enclosing store - I know a couple in convenience stores which are just open office hours.WillPS wrote: ↑Tue 02 Jan, 2018 18.03 I don't reckon the Spars, Premiers and the rest are much of an issue either. The Post Offices WHSmith operate tend to be on high streets where most shops are shut by 6. The convenience stores with longer hours tend to be in neighbourhood locations. I'm all for Post Offices open in the evening though.
The converted Bunnings stores are selling Homebase branded stock (as regular stock, not clearance items). Incidentally, for those who haven't yet been to a Bunnings, they don't have a Bunnings own brand, but Aldi-style "phantom" brands.
The Homebase-Bunnings conversions seem to be going very slowly with only 15 stores done so far, not at all like the speed of the Safeway-Morrisons conversions. It means it's going to be a long time until Bunnings TV and national press ads become financially viable, and this will delay the brand from taking off.
Since writing this after my first trip to Bunnings I've noticed the most obvious change of all - they've removed the entire mezzanine floor from the building. It seems a strange decision to actually decrease the amount of trading space.
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Agreed, as we've seen already this week, Steinhoff's European company Pepkor Europe have secured a two year loan to ensure the UK businesses (Poundland, Bensons for Beds, Pep&Co and Harveys) can continue trading without being reliant on the main company for capital.WillPS wrote: ↑Mon 01 Jan, 2018 22.25
Poundland's profits are not reported individually since their acquisition by Steinhoff but given the massive profit they made prior to that (even with all the 99p Stores liabilities which they've since shoved off) I think it's a longshot. Another sale is far more likely.
However it the s*** really hits the fan for Steinhoff, Poundland will certainly be saved, but unsure about the other businesses.
TVF's London Lite.
I won't be sad if Pep&Co bites the dust. Their entry to Hull got the previous occupants of their store evicted even though they didn't want to leave. Outbid on the rent, I think. Luckily That's Entertainment found alternative premises, albeit smaller.