One suggestion I've heard from two sources is a Home Retail Group (Homebase/Argos) DRG merger. The result being opening Currys outlets in Homebase and extending The Tech Guys franchise to Argos customers. Distribution and Internet shopping for the whole group being handled by HRG.
Significant High Street Currys Digital Shops being lost in the combination.
PC World and Currys warehouses are reasonable franchises still.
Who's for the chop?
I'm still confused somewhat by all this talk of B&Q going. I was under the impression they were profitable and surely their overheads are relatively low as there are not that many staff and the shops themselves are warehouses.
Anyone care to enlighten me?
I would have thought crapper places like Wickes and Focus would go first
Anyone care to enlighten me?
I would have thought crapper places like Wickes and Focus would go first
"He has to be larger than bacon"
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madmusician
- Posts: 153
- Joined: Mon 11 Dec, 2006 19.11
- Location: Worcester, UK
My dad's tip is that WH Smiths will be the next to go. He claims that they "have been on the edge for years". Not sure whether to believe him or not... 
I'd have my doubts about that. They've not quite been plunged into the depths of redundancy as a business model in the way Woolies did, and I assume its still holding its place as the country's de facto chain newsagent.madmusician wrote:My dad's tip is that WH Smiths will be the next to go. He claims that they "have been on the edge for years". Not sure whether to believe him or not...
I imagine its relationship with the Post Office at the moment can't exactly be hurting it either...
I can see WHSmith discontinuing with CD's and DVD's, as the amount they have had to offer over the past few years has declined and their prices are anything to write home about, but they still do well with Books and Newspapers, with the Post Office relationship that must have given them an added boost.
steve
WHSmith is doing incredibly well from the Post Office. There were a lot of initial set up charges and mistakes that were made that cost them money but once that was ironed out it has continued to do well.
In stores that now have a Post Office, footfall has increased by a good number and whereas people at first just went to the Post Office part, but (and I speak from experience) now many more actually stop and have a look to check there's any worthwhile deals.
I used to work in the Fulham store, in the Post Office (!) and 20 people were employed there. Just 4 of those were for the main WHSmith store so they can hardly be accused of over staffing their stores. And they certainly aren't that generous with their pay, even for managers. With the prices they charge their profit margins should be massive.
It's always been overpriced and should have been forced out of the market years ago and the business went through a rationalisation programme a few years back which helped it out of a whole, I think.
But still, they've got their WHSmith News distribution business which delivers to many newsagents and they now get the chance to charge far too much for a sandwich in many motorway service stations.
In stores that now have a Post Office, footfall has increased by a good number and whereas people at first just went to the Post Office part, but (and I speak from experience) now many more actually stop and have a look to check there's any worthwhile deals.
I used to work in the Fulham store, in the Post Office (!) and 20 people were employed there. Just 4 of those were for the main WHSmith store so they can hardly be accused of over staffing their stores. And they certainly aren't that generous with their pay, even for managers. With the prices they charge their profit margins should be massive.
It's always been overpriced and should have been forced out of the market years ago and the business went through a rationalisation programme a few years back which helped it out of a whole, I think.
But still, they've got their WHSmith News distribution business which delivers to many newsagents and they now get the chance to charge far too much for a sandwich in many motorway service stations.
Good Lord!
Wasn't the news distribution section of the business de-merged a few years back?Isonstine wrote:But still, they've got their WHSmith News distribution business which delivers to many newsagents and they now get the chance to charge far too much for a sandwich in many motorway service stations.
Yes, WHSmith News demerged sometime ago and is now called Smiths News. I'm not sure that's a good sign for WHSmith's future?Isonstine wrote:But still, they've got their WHSmith News distribution business which delivers to many newsagents and they now get the chance to charge far too much for a sandwich in many motorway service stations.
Oh right, wasn't aware of that. Oh well, I guess that was part of the "rationalisation" programme a couple of years back. Certainly in terms of a business they should have gone a long time ago as I said before, but was their relationship with the Post Office a shrewd move in terms of helping them out of a hole? Would they be allowed to fail when they now house 80 branches, with many in highly populated towns?
Mind you, the interesting thought is should they go under, who would take on the contracts for the Post Office in these locations where the crown offices have been closed? I doubt they'd just disappear, perhaps the government would consider funding to put them in town halls, like many wanted in the first place?
Interesting questions, but it makes them more than just a retailer selling books that could go under. I just get the impression that they will barely ride it out but as for their long term future? Hmmm more questions than answers here.
Mind you, the interesting thought is should they go under, who would take on the contracts for the Post Office in these locations where the crown offices have been closed? I doubt they'd just disappear, perhaps the government would consider funding to put them in town halls, like many wanted in the first place?
Interesting questions, but it makes them more than just a retailer selling books that could go under. I just get the impression that they will barely ride it out but as for their long term future? Hmmm more questions than answers here.
Good Lord!
I remember where I used to live the Post Office was moved into a Martin's newsagent which about a year later closed down, leaving the post office at the back of an empty shop. This was in quite a big town too, the last time I was there the shop now houses a school uniform business, with the Post Office still at the back. So even if Smiths went out of business it doesn't mean the Post Office would close.Isonstine wrote:but was their relationship with the Post Office a shrewd move in terms of helping them out of a hole? Would they be allowed to fail when they now house 80 branches, with many in highly populated towns?