f1_fan

iTrader: (9)

As I have mentioned on here before the UK retail sector from my experience is in a slump like never before.

I know the official figures from the government say we are growing as an economy again and that the Royal Wedding provided a retail sales lift and various other snippets of good news mixed in with some bad too, but I am not entirely sure we are being led a merry dance i.e. fed a large dose of BS.

I deal with retailers at the moment quite a lot and not one of the twenty or so I have spoken to in the last few months are anything other than pessimistic for the near future. Out of the 20 around 75% have said this is by far the worst they have ever known it and over a third of them have been trading for 25 years plus so that puts it into perspective

Two of them have closed down since the start of the year and I fear another three or four aren't far behind.

This isn't a thread digging at any government or the likes (for once), but instead I am interested in anyone else's experience if they work in retail or deal with retailers. I am close to calling it a day myself to be honest as there ain't much poiint flogging a dead horse and at least I have another business to fall back on.

kingofturds

iTrader: (1)

The only new shop to open in our town in the last year is a soup kitchen. Countless others have closed.

EddScott

One thing that doesn't help the high street is the stupidly high rates. My wifes salon would earn far more being in the high street but the rates for a high street shop make it a no go. It is supposed to be on square foot (I think) but even so the high street shops are just too expensive to occupy.

The other issue is that the council use out of town real estate firms which don't give a toss. We tried several times to contact the firm responsible for renting one of the shops thats been empty for a few years and they didn't bother to come back to us.

The "out of town" stores have been revamped here and you would think everyone is on the gravy train as most weekends it's packed out - not as big as england out of towns but it's still packed to the gills of the very same folk who are supposed to have suffered the most - credit funded lives in massive mortgaged homes all wearing North Face jackets and pushing designer prams.

Makes no sense to allow these out of town stores when the town centre dies on it's *** - plus we all have to drive out of town whereas many can walk into town. I see the high street electrical stores are on the verge - why not downgrade and move back into the high street? Reduce overheads, get cheaper to take the fight to online retailers.

JTaylor

Up until recently I ran Wales for a large retailer and have made a decision to step-down in to a more relaxed role. The reason? The only way we (me and the missus) could justify my 12 hour days, 6 and a half days a week, was the bonus at the end of the month - we used to stick them into our retirement fund so that we could get the time back in the autumn of our lives. Anyway, bonuses kicked-in at 90% of target and ramp-up to 110% and the targets are based on like-for-like numbers. Suffice to say, nobody's had a whiff of bonus for some time and when one works out the hourly rate without it, it ain't that hot.

I know a fair few senior managers, directors and even the chairman of a very large electrical group, and I can assure you that, on the whole, the big ticket retailers LFLs are down - and that's against **** poor performance last year. I'm not really spending a lot at the moment, are you?

Leslie

The council down here increased the business rates by 50%!

Les

hodgy0_2

maybe the internet is finally hitting the retail/highstreet sector

I was talking to a collegue who travels around the country quite a bit - and he said that town up north are looking like ghost towns

even the charity shops are closing!!!

JTaylor

That footfall's often up for the B&Qs of this world around this time of year. The footfall monitors from the likes of the Steinhoff Group don't make for pleasant reading.

The Zohan

My recent experiences are that i prefer to shop on line for a lot of things. Recent trip to Currys to buy a dishwasher for £400.00 where met with apathy and then a 3+ week wait for delivery. I ordered on line from (same day) and the machine was delivered (at no cost) two days later to suit my timetable. This is one example of a general attitude with some retailers.

from a personal family mans' and consumers pov of Northampton is that i avoid the town centre due to no free parking compounded by overzealous traffic wardens who i have witnessed waiting by a car for the meter to click over and slap a ticket on it. I just do not see why i should have to pay a premium for parking to shop in a run down town centre and also risk running a few mins late and get a ticket - why should i when i have a choice.
I also resent some off the blanket pedestrianisation of the centre of town which has greatly reduced parking and access to certain shops and areas of shops.

It seems to have completely passed the counsellors by that making it more difficult and expensive to shop in town will drive people out of town, replacing the shoppers with teen chavs pushing prams and dragging young children along with them and drunk fonzie look-a-likes who only shop in the pound shop and/or macdonalds.

I used to go into town on a weekly basis some 10 years ago, now i cannot remember the last time i went there for more than banking (bank has a private car park)


I choose to shop in MK or Wellingborough or on-line with the likes of Amazon.

Ant

We deal with a independent tv retailer , his business is booming only reason this dso I. August he'll be struggling after that's for sure.

kingofturds

iTrader: (1)

Last year I did some agency work delivering white goods, the only people who seemed to have any money to spend were the unemployed single mums.

tony de wonderful

My mate has a internet business pimping out consumer goods and it's growing well.

bigsinky

It must be different for bigger cities or else Northern Ireland isn't being hit as hard. you couldn't get moving in Belfast last Saturday, no joke. i drove into a multistory car park last saturday and had to drive out again. there were only a few spaces and none big enough for my car. M+S was bunged, the foodhall was a free for all in the morning (i like my Yum-Yums). the other shops around the town were in a similar vein. the new house of frazer in belfast still seems to be selling stuff quite well from what i could see. the apple store had loads of people in as well. i understand footfalls don't make sales but belfast would give you the impression that there was no recession.

JTaylor

The big ticket websales within furniture and electrical (to a lesser extent) leveled-off a while back and the negative LFLs are inc. websales. Websales are certainly up in other sectors.

JTaylor

When did he start it?

tony de wonderful

Started off slowly about 5 years ago I think. Another mate of mine/his had a shop and he had some knowledge of making websites and online marketing, they joined forces, took it online gradually.

It's not massive but doing well and growing. Kind of niche area though with few direct competitors.

It's not rocket science, the fulfillment/distribution side, just need a bit of organisation and business skills. But really you need that niche little thing you can work from as a base...a seed to grow it from.

JTaylor

It's been like that since the commission structure was moved from personal to a nominal 'team' bonus. People don't work so hard for the sale - big ticket salesmen are mercenary by nature. The exceptions to this are John Lewis, whose culture supports and is driven by a superb profit share scheme, and places like M&S where the T&D is that good one tends to recieve excellent service despite there being no additional monetry reward for the staff.

Wish

iTrader: (2)

I buy just about everyhting off the internet ... It would seem you get a better customer service from the likes of AMAZON ...

f1_fan

iTrader: (9)

You sound like you know a bit about this retail lark and your initial post here pretty much lines up with what I am getting. It just isn't worth my time right now for such little return.

What do you think will happen for the rest of this year. Several retailers I deal with are clinging to the belief that the last 3 months of the year will be better as people finally decided to spend their money, but I am not that convinced.

What do you think?

tony de wonderful

Yeah big town planning mistake in the 90's to build more out of town retail parks etc.

Now some high streets are looking like ghost towns and it encourages urban decay, bad behavior etc and people feel fed up with the place they live.

Not to mention the extra car journeys it necessitates.

GlesgaKiss

Yeah they're excellent, I use them for all books/cds/dvds etc. Edd makes a good point about the rates, they're just silly in places.

EddScott

And I would think that if the "usual suspects" in these out of towns moved into the high street their overheads would come down? Or perhaps they bully the local council into giving them special rates at the cost of the local businessman.


It's a joke. A complete joke. The last budget was quite helpful in that there is some discount that was going to end in October that is going to be extended - if our rates are discounted I can't wait to see what the full cost is going to be. I would like to know exactly what our rates pay for - the upkeep of the street? no, apparently not the council responsibilty. Rubbish collection? Well no, its £25 per roll of blue bags which should easily pay for the amount of rubbish generated.

The high street is dying, the 2nd schools are a sh1te hole and the council is occupying it's recently built state of the art fortress - it's a f*cking disgrace.

alcazar

iTrader: (2)

I, too, have bought almost evrything over the last three years off the internet.

Each time, I go to Comet/Currys/PC World/Dixons/Halfords etc, and ask them to get somewhere near the internet price, but they just aren't interested.

So then, when I want bits, accessories etc, the internet gets that trade too.

GlesgaKiss

Places like Costco are good too for tvs and the likes.

alcazar

iTrader: (2)

Woo-hoo, don't get me started on council buildings.

I used to work for the local council, but NOT in one of their offices. I then had to visit one...........I COULD NOT believbe the working conditions: air conditioned, properly lit, properly shaded, water coolers, comfy seating, etc etc.

And believe you me, there is ALWAYS money available to refurbish. modernise etc COUNCIL workers' offices!

Scooby Soon!

what sort of product market are you in? I am in retail and to be honest we are doing quite well and so are most of the people we associate with but one of our major suppliers is just going bankrupt (we think) so what is selling really bad in retail? (or not selling!)

f1_fan

iTrader: (9)

I am in jewellery, mid to high end. That's why I don't take much notice of the online sales issues as I think anyone spending a good few hundred quid on a piece of jewellery is not going to buy it online and anyway most retailers have some online presence these days.

boxst

I wonder if it is time for manufacturers to have 'showrooms' on the highstreet. Places where you can go and look at the latest thing (be it a TV or a washing machine) and then go and purchase it online from a shop of your choice.

I have purchased a washing machine and a cooker from a local (independent) electrical shop as they would match what I could get it online for and a television from CostCo as it was more or less the same price plus it came with a five year guarantee.

Steve

EddScott

No matter how much they claim the public sector is being squeezed, the council office workers get a pretty good deal IMO.

Our TV was from the local Panasonic shop - Panasonic can sometimes be a bit funny with the 5 year guarantee of bought online (sometimes) Plus they offered a "free" bluray recorder. Didn't want the recorder to flogged it on ebay to offset the cost of the TV. They have recently expanded so I guess must be doing OK.

My wife has completed her first year in the salon and it's made a small amount of money. It pays it's way which is enough for now. Our main costs are rates and a greedy landlord

Scooby Soon!

http://www.geraldonline.com , UK's biggest online retailer for Jewellery and doing quite well, I think with free returns and refunds more and more people will buy anything online. I sell a lot of different items all of them are not the usual sort of items you would get online and we do get the occasional person contacting us worried about quality or if we are a REAL company but the vast majority just type there address and card details in and wait for it to arrive.....

JTaylor

First, a caveat. I'm not Mystic Meg and George Osborne isn't a member of my golf club. Having said that, Mr Cameron and my old boss are on first name terms and I'll be leaving retail soon (as an employee rather than an employer).

Now the obfuscation's out of the way, my instinct, if you're in Jewellery, is that you're at the behest of the precious metal markets. If interest rates remain artificially low (which I suspect they will to, among other things, protect the housing market) I'd forcast these markets to continue in an upward trend for the foreseeable future as an alternative to currency and to protect against inflation and so forth. Additionally, you're in a luxury market during a period of austerity. Having said all of that, if your competitors fall away and you can tough it out, you'll come out the other side much, much stronger. Only you'll know if your business is fit enough to get through and whether you're stronger than the guy down the road. If you're not, don't let pride stop you from exiting with a couple of quid in your sky-rocket. Be honest with yourself.