Jaybird-UK

Following on from the news that Dixons annual rent bill was three times its annual underlying profit it seems that Comet's future isnt looking too great either....

Kesa Electricals – the owner of Comet – has seen its shares jump almost 8 per cent today, on rumours that it may close the UK chain Comet and return to its roots in France.

ALi-B

iTrader: (1)

Doesn't suprise me; when I purchased a TV for £400 less than for what comet were offering it at, you have to realise a) the mark ups. b) the huge overhead that results in the need for that mark up, c) the fact you can buy it off from the likes of Amazon via a Laptop for alot less without moving your **** from the sofa. Is it any wonder why people don't bother with high-street retailers anymore?

Ignoring the rip-off high street prices, the UK is getting a pretty good deal with consumer goods at the moment, even with the high rate VAT; You struggle to get the same kind of deals/retailer competitivity in Spain, mainly because online retailers are yet to cotton on and are probably ten years behind the UK in internet retailing (even though their 3G network is vastly superior to the UK's ). But you also get better customer service and ability to barter over there, so higher prices are more justified.

Simply put; The UK shopping Mall is a dying breed....Pity the Glazers don't own any Malls in the UK

The only exception is Best Buy. However they don't seem to be any better than the others, so I can see that running off to the USA with its tail between its legs in a few years time (unless Comet and DSG fold, leaving it as the only remaining mainstream/dominating retailer).

f1_fan

iTrader: (9)

Sorry don't really agree with much of that. It has far more to do with the fact that consumer confidence in the UK is at an all time low and getting worse. The retail sector is suffering very badly right now despite our beloved bunch of lying Tory ******* telling us things are rosy.

I wholesale to the retail trade and my products are never going to be online sellers and the retailers I am dealing with are saying this is the worst they have ever known it.

Sales are just way down in most sectors and Comet while a little feckless and overpriced in some ways (although comparing an online retailer iwth a high street retailer is a little unfair as they have vastly different overheads and even different markets in some ways) is mainly falling victim to that.

It will be survvival of the fittest, but frankly I will be surprised if any survive in some sectors so bad are the trading conditions and the outlook for the short to medium term.

Labour and the recession have screwed this ciuntry and now the next lot are trying to paper over the cracks - it's a mess!!

ALi-B

iTrader: (1)

I don't think its anything to do with "confidence" unless you're silly enough to think that anything and everything revolves around retail spending; A consumer either has the money or doesn't. A person suddenly realising they have none usually means they've been a bit silly spending it beforehand (or breeding) without properly thinking of the consqeunces if one should, say, lose their job. There is no such thing as a 'Job for life' and there is always uncertainty about the future as its always more negative than good (News Corp's mantra; bad news sells )

I suppose we could thank Labour for the fake retailing boom....I call it fake as it was a boom that was fueled by consumers spending what they never really had in the first place; The spending of money and living a lifestyle funded by loans that they could ill afford (realistically) without further borrowing and no safety padding. It had to stop somewhere. And who does one blame? The people that borrowed and spent it. So, sorry, Labour can only shoulder part of that blame for allowing the oppertunity to make lower-middle classes think they were something they were not (i.e richer than they actually were), and then the banks who were blinded by dollar signs in their eyes. But the buck stops with the person borrowing the money in the first place. If nobody took out a stupid loan or mortgage and lived beyond their means we'd never would have had that boom....nor the bust that followed it.

Those that didn't borrow or live so far beyond their means do exist. Not brilliant, but OK. And yes, when their TV goes pop, they will go out and buy another. Just like I did (well, actually I sold the old one).

And thats the thing, there are still consumers and money is still being spent; People with money will still spend, its just those without it will think twice (like they should have done during the boom). Sure the number of people out there spending that is less, so a retailer has to worker harder to entice, but its nothing to do with confidence. Nobody should be buying something that puts them onto the breadline and running after the next pay cheque or pushing for a bigger loan/mortgage regardless of how good the economy is or not. Dog eat dog. Survival of the fittest. Yup that's life. Its bitten alot of people on the ****, and there are plenty that can blame only themselves for it (but don't). Sorry but blaming it all on Labour and the banks is a cop out; And I'm no Labour fanboy.

In the end of the day if Amazon can offer what Comet can, for less, with no quibble returns or feedback censoring, and no dimwit salesman telling me to buy a LED TV because the plasma needs 'regassing' (seriously, they are still spouting that myth ), delivered to my door, then where am I more likely buy from? (Ok, Comet to view it, Amazon to buy it ) Amazon also allow the small retailers to have the market spread of big chains without the overheads. I like to think that by using them I'm actually helping out the little guys who made the extra effort to be competitive.

People who are shrewd will always go to where they get the best deal; No matter how rich or poor they are. The only time confidence comes into play is if the consumer thinks that the retailer is giving them value for money. And with a smaller customer base, it is a buyer's market. Diversify and adapt, or fail. Comet and DSG are doing the latter. Small traders using the likes of Amazon to offer good outside their normal catchment area are doing the former - reaching as many potential consumers without requiring anywhere near the same infrastructure overhead as the big fish.

f1_fan

iTrader: (9)

Er..... the thread is entitled 'More doom and gllom for UK retailers' so while 'it' is not all about retail spending' this thrread is.

Seeing as you started like that haven't bothered to read anything else yet as not sure it's worth wasting my time.

At the end of the day I deal with retailers all the time and I doubt they are lying about consumer confidene and money being spent.

If you wish to take a different view then be my guest.

Hysteria1983

High street spending has been at an all time low in general over the last few years, this was made worse by the public over previous years borrowing and spending money they didn't have.

This made sales look great! But in turn made the lowest sales look even lower. So the term 'consumer confidence' being at an all time low, does ring true. But that applies for all the wrong reasons. It's not furled just buy people tightening the purse strings, it's about having the brains to know there are other places to buy from.

It is very rare that myself or friends visit a shop such as comet and actually buy from there, as the Mark up price is stupid! Online
retailers are the way to go at the moment.

This situation has only been created by the public in the first place, it's the loans and the spending that's made shopping at comet and other retailers affordable, and that was all down to the government at that point making it easy to spend money we didn't actually have.

Now people need to actually have the money they want to spend, they have to think hard about where they want to spend it.

EddScott

I will agree that the prices of high street shops tend to be over the top. Another reason for this is the actual cost of having the shop in the first place and all the associated costs.

It's all very well for us to sit back and buy online yet we look at our high streets full of Oxfam shops, card shops and Costas! Most UK high streets are shadows of what they were. All this "out of town" shopping has killed the high street yet cost these retailers and absolute fortune.

They would probably be more likely to survive and prosper knocking these huge shops on the head and taking on smaller shops in town - ex Woolworths shops would be ideal. Big enough for stock and showing items but smaller and cheaper than these out of town citadels.

The government also needs to do more to help with the cost of rates in the high street - another big reason for empty shops is the rates. My wifes shop rates is £4K. We would love to move more into the high street and one premises would suit just fine - the rates are £15K. Hence it's been empty for a year.

tony de wonderful

I hate Comet. The staff are really pushy and 'hard sell'.

ALi-B

iTrader: (1)

And I thought this was a dicussion forum to allow people to voice their own view points and read that of others.

Hysteria has it bang on the nail in my opinion

Landlord and council rates for retail shops are just stuipd at the moment too. Which doesn't help from making the average highstreet being nothing but charity shops and bargain basements.

Ant

I bought my mac from comet as they had a good voucher code deal on.

I had a letter from them yesterday saying would I like to take there cover at £145 for the year ,apple care is less then that for 3 :cuckoo

That was the last time I bought from comet.The only plus side to comet is if you need Something quickly then it's there but you pay a
Premium.

Not all retailers are bad for pricing , richer sounds being one.

f1_fan

iTrader: (9)

Yep but when you start with a dismissive 'it's got nothing to do with confdence...' where is the disucssion? You are just making a statement like it is fact! You are perfectly within your rights to do that btw as I am to not bother pouring over the rest of your reply.

I keep hearing the statement people still have money... so the reason they are not spending it is???? It begins with a C

Hysteria1983

People do still have money, but rather than running out and buying the latest TV or iPad 2, maybe they are playing it safe...? Perhaps they are saving it in case they bet the boot from their job.

f1_fan

iTrader: (9)

Exactly... they don't have the confidence to spend it!

Leslie

Very sensible to save and get something behind you in case things start to fall apart in the future.

I would be really worried if I had an enormous credit card debt as seemed to be the fashion in recent times.

Les

ALi-B

iTrader: (1)

Fact: Retail spending is down
Not a fact: Its all because of 'consumer confidence'. This is just a media spun buzzword thats about as usefull and accurate as a 1 mile thick paintbrush.

Everyone has different reasons for not spending thier money in certain places at certain times. I've given my reasons (not fact). But seeing you can't be arsed to read my diatribe (not that I expect you to), I may as well end it with this:

More doom and gloom for Uk retailers? The media and opposition government will always say yes (thats what sells and wins votes). I say its only gloomy for those retailers who don't adapt, diversify and widen their catchment without going overboard on the overheads.

For example I'd like to see Richer Sound's balance sheets, and see how they stack up against the likes of Comet; With what they've done in recent years with online advertised deals to entice higher store footfall and and buying up Empire direct's logistics it would make for an interesting comparison.

f1_fan

iTrader: (9)

Complete bollocks!!! No point in discussing it further as ... well you just don't get it!

BTW inflation back up to 4.5%, markets down again.... but we're all imagining it of course

ALi-B

iTrader: (1)

I'm just going come out and say it:

You're a funny old grumpy git.

tony de wonderful

My local town center has been devastated the last 10 years or so, it's gone from being fairly busy and thriving with all the big high street names to now lots of empty units and charity/budget shops. It's really sad to see. Plus you had the explosion in bars etc in the early 00's and that kind of over extended and lots closed the last few years.

Main reasons for this were the Trafford center, a closer out of town 'big shed' retail park....and slightly later the rise of online retail.

There used to be a Woolworths which figured loads in my youth...it was the place you got music (tapes) from, video games, 'parka' coats in the early 80's, various toys and games all whilst growing up etc, you got wrapping for gifts etc all sorts of stuff. Now it's an Iceland.

I don't know what the solution is but I'm sure it's not just more 'development'. Half the high street got redeveloped - before funds ran out? - but there is just too much retail chasing too few customers IMHO.

Out of town development was a big mistake because it encourages more car journeys etc and kills town center life....we just all become alienated in our suburbs.

I'd like to see lots of retail space knocked down and made into parks or something?

f1_fan

iTrader: (9)

Yes I am

Scooby Soon!

do you mind giving me an idea of what you wholesale as I beleive everything can be sold online (being an online seller my self)

tony de wonderful

It's all we have in the UK though (besides property).

People were 'confident' enough to take on large personal debt during the property boom and lots of that got spent on consumer goods....adding to GDP.

Everyone felt good, property was going to the moon, inflation was low, people just spent money they had (and didn't have!).

Jamz3k

Don't know if this is the same sort of thing but in my shop we have agreements with suppliers of certain products that forbid us(and anyone else) from selling their products online as to not devalue the product via online competition.

ALi-B

iTrader: (1)

I always assumed that was a ploy by Richer Sounds to keep a high footfall in their stores and sell hideously expensive cable to anyone who does buy something.

(Joke, well sort of, the cable and connects is shockingly overpriced albeit not as bad as Comet).

I personally think manufacturers that limit/restrict on-line supply/trade on the internet is severely limiting their market (IMHO, of course ).

Jaybird-UK

Retailers like Comet and Currys haven't cottoned on to the fact that its all down to price now.

They haven't had decent customer service for years so rely on convenience alone, I was looking for a cooker two months ago and the same model was £160 cheaper in Bestbuy, I also felt far less pressured there too.

Gordo

You need therapy - there's a lot of bitterness and pent up angst in there!

a) I've not seen any government messages saying it's all 'rosy' at the minute

b) put yourself in their shoes. consumer / national confidence is a fragile thing, so being anything other than neutral to positive would be negative and potentially damaging.

Consumer spending is down - no real surprise as most people haven't yet felt the impact of the downturn as interest rates stayed so low as to not really affect things until recent inflation has started to impact alongside continuing buggeration of world ecomonies struggling with national debt. However, recessions are good as they cause average businesses to fail and the better business models to forge ahead. Hence Dixons doing badly but Amazon growing strongly.

Gordo

Hysteria1983

Maybe, but that's just a word that's been coined to make people feel better as the result of all the government hand outs!

lordharding

iTrader: (1)

Retailing is tough now I've been in it for 28 years all the retailers are down that I know of

Lots of reasons

Out of town retail parks are killing town centres and one of the main reasons is the councils that charge £5-10 a day to park in town centres customers hate paying for parking so would rather go to the retail sheds with free parking and ease of carrying things to cars

Councils are then panicking car parking revenue down and city centres full of charity shops

Internet shopping has really taken off with eBay /amazon etc and people are getting more confident in buying including the silver haired web surfers ,they are the ones that have money and they are getting nothing from their savings so are treating themselves and spending their kids inhertence

Pushy sales staff

Hard one that but the staff and sales managers are paid to do a job ,sales and profit ,they are paid commission ,they need the money as basic salaries have been frozen they have to make it up in commission and spivs and add ons ,warranties etc
They have to sell or they could be performanced managed out of the business so they are worried to ,the good times are over so they have to fight for every sale and here never seems to be enough time in the day to give them more product knowledge and training
It's tough out there
So save your pennies and try to pay off or reduce your Morgage if you have one as things will get worse ,interest rates will go up and inflation will be up to 7% soon and your savings are worth nothing

tony de wonderful

I hate this. If I go in a shop I don't want to be spoken to unless I speak first!

Of course sometimes you can tell if someone is just being nice or helpful but that is rare in big chains like Comet etc, normally would happen in boutique places or local shops.

bigsinky

SN may be owned by an american company tony but we aren't in obamaland yet, get that corrected worthwith sir

Lisawrx

iTrader: (1)

So do I, however, that is not the fault of the staff.

I don't work in a commission based environment, but the new way of doing things that is being sold in is 'customer first' and the main aspect of that is approaching every customer in view and asking them if they need help, and then pushing (way more relaxed than some retailers) for associated sales.

I personally do not agree with this approach, but at the end of the day, I am not in charge, so have to sort of go along with it. I will be honest and say I don't follow this all of the time, in part because I don't really like the response of 'if I wanted ******* help I would ******* ask for it'. I understand alot of people don't like that type of customer service (none moreso than myself), but apparently research would suggest otherwise and poor floor staff are put in an unwinnable situation.