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And finally - how to win friends, influence people and steal the market share |
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Posted At: 25 January 2012 16:48 PM
Related Categories: And Finally, Retail, Retailers |
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McDonalds, the bane of many parents’ lives, is sharpening its image. Having masqueraded under the guise of a restaurant* for some time, it is now being informative – calorie count on the menu (really, it’s best not to look) – and educational. With an initiative allegedly aimed at increasing literacy and creativity amongst children, McDonalds will be including the Mudpuddle Farm series of books from acclaimed author Michael Morpurgo, in with their Happy Meal.
This initiative is likely to see McDonalds give away 9 million books over the four week period. With sales of children’s books averaging around six and a half million over the same timeframe, McDonalds will, for a very short time, become the biggest retailer of children’s books
Undoubtedly, the fact that Morpurgo is also the author of Warhorse is completely lost on the marketing chaps at McDonalds, and their intentions are singularly altruistic, but we at SnapShop nevertheless give this the thumbs up for feeding the little ones’ minds.
*Although there is no mention of knife and fork in the dictionary definition, the origin of the word is “food that restores”. Hmmmm!
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Christmas Sales Commentary |
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Posted At: 24 January 2012 14:56 PM
Related Categories: Christmas, E-tailing, Retailers |
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The retail story of 2011/12 Christmas is less about sales and more about survival. Sales generally were better than in snow-struck ’10/11 but the number of retailers going into administration has been the highest since the ‘08/09 crisis. Few of the failures have been a surprise and sadly there is still a queue of struggling retailers.
The hard work and ingenuity of retailers maintained sales over Christmas but at the cost, at least in some cases, of squeezed margins. Financing the investment in the new technology that is driving market development and growth is challenging for all retailers, but especially for those struggling to service their existing debt. The threat of pure on-line to physical retailing is turning out to be less than envisaged a few years ago. On the other hand, the importance of all retailers having an effective on-line offering becomes ever more apparent.
Meanwhile, the knock-on effect on retail locations is still unclear. Retailing will continue to thrive beyond the 30 to 50 UK locations of interest to global retailers but its format and nature are not yet clear. That ultimately will be driven by the nature and scale of local demand. The challenge for asset managers is to be able to identify which of their occupiers is at risk, either corporately or because the rent to turnover ratio is unsustainable. Knowledge is indeed power and using that power effectively will mark out the best managers.
To access fully analysed Profit and Loss information including Financial Health indicators, along with downloadable officially filed company accounts and for regular updates on weekly, monthly, quarterly, half yearly and full year results, including total and like for like £ and % sales results, please subscribe to SnapShop
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Retail Spotlight – Peacocks calls in the administrators |
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Posted At: 19 January 2012 15:34 PM
Related Categories: Administrations, Retailers, Social Commentary |
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Despite reporting a like-for-like sales increase of 17% over the Christmas period, Peacocks’ problems ran much deeper – after months of struggle, Peacocks calls in the administrators making it the biggest retailer to collapse.
19/01/2012 – Peacocks collapsed into administration putting over 9,600 jobs at risk. Joint administrators from KPMG are trading the company while they look for a buyer. The Bonmarché business, which employs approximately 3,800 staff, has not entered administration and continues to trade
17/01/2012- Peacocks boss attempted to put together an eleventh hour rescue deal to save the retailer as the company's advisers filed a notice of intention to appoint an administrator, after talks to restructure £240m of debt failed
09/12/2011 – Peacocks was considering closing up to 200 stores, as it was seeking to reduce its debt burden
28/11/2011 - Goldman Sachs was in talks to take control of the chain and was in discussions to become the majority shareholder as part of plans to reduce Peacocks’ £240m debt pile
19/09/2011 - Peacock lenders appointed KPMG to conduct an independent review of the business
28/04/2011 - Allan Leighton was in talks to become Chairman of Peacocks, for a potential sale or flotation
18/04/2011 - Fast fashion chain launched a higher-priced collection of catwalk-inspired clothing with retail prices between £35 and £38
01/10/2010 - Peacocks cancelled plans for a sale as it failed to attract what it considered to be acceptable offers
31/08/2010 - Peacocks hired Goldman Sachs, and was looking at selling the chain for an estimated £500m-£600m, or refinancing the business
18/06/2010 - Chief executive Richard Kirk confirmed that a strategic review of the business has begun that is likely to result in the sale of the value fashion chain
26/04/2010 – Owners were considering a sale or refinancing of the value retail group
20/04/2010 – Value retailer relaunched its website
11/01/2010 – Retailer reported cracking Christmas, like-for-like sales rose 8% in the eight weeks to January 2, with a 17% spike in December and early January. Total sales over Christmas rose 13%
16/12/2009 - Peacocks has taken a 10-year lease for 7,800 sq ft at £25 per sq ft at Newbury Retail Park in Newbury
4/11/2009 - Peacocks took 7,000 sq ft shop at Thornfield’s 1.6m sq ft The Rock scheme in Bury, Greater Manchester
9/01/2009 - Peacocks outlined plans to buy up to 50 shops from failed competitors
Financial Health:
Key:
P2>175 – Very Strong
P2 >150 and <175 - Healthy
P2>125 and <150 – Fairly Healthy
P2>100 and <125 – Head Above Water
P2<100 – Very Worrying
SnapShop subscribers can find more information like store numbers, quarterly and annual sales and latest news on the Peacocks Group and Bonmarché here.
Elsewhere on the high street, Pumpkin Patch UK arm went into administration while Primark’s sales surged over Christmas, ASOS reported strong Christmas trading, Q4 sales jump at ebay. For more up to date news on retail administrations, new retailers and expanding retailers, please subscribe to SnapShop with membership starting from only £96 pa.
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Retail Spotlight – Pumpkin Patch UK subsidiary goes into administration |
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Posted At: 19 January 2012 15:23 PM
Related Categories: Administrations, Retail, Retailers, Store Closures |
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Following the announcement of collapse of children’s store Pumpkin Patch in the UK; we bring to you an overview of the retailer’s financial performance over the years and highlights of the latest news
19/01/2012 - Pumpkin Patch has called in administrators on its UK subsidiary, this does not affect any other of the group's companies. Retailer said current economic environment in the UK and in wider Europe is extremely difficult. It’s website and social media channels have not been updated with this information
28/09/2011 - The CEO resigned after the company swung to a full-year loss, which it blamed on soaring cotton prices, soft trading conditions, and the impact of natural disasters in the region
11/02/2011 - The results of the company for the year ended 31 July 2010 showed a pre-tax profit before non-recurring items of £1,872,183 for the year and sales of £24,993,241. During the year retailer opened 3 new stores and had expected to open 3 new stores in 2011
8/07/2010 – For the year ended 31 July 2009, the results for the company show a pre-tax loss before non-recurring items of £4,842 (2008 loss of £277,892) for the year and sales of £24,076,404 (2008 £23,731,916).
Financial Health:
Key:
P2>175 – Very Strong
P2 >150 and <175 - Healthy
P2>125 and <150 – Fairly Healthy
P2>100 and <125 – Head Above Water
P2<100 – Very Worrying
To keep a tab on these retail administrations and financial health of over 2000 retailers, please subscribe to SnapShop with membership starting from only £96 pa.
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All White |
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Posted At: 17 January 2012 15:50 PM
Related Categories: Retail, Retailers |
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Peacocks, on the verge of administration, would be the biggest failure since the Woolworths collapse of 2008, which preceded a Christmas of Horrors for a host of retailers. This year is showing similar tendencies, but with all around them failing, or at least flailing, White Stuff has a reason to smile.
Accounts filed in December for the year to April 2011, show White Stuff continues its trend of not only increasing sales, but increasing profits too.
This headline information is supported by FSP accounts analysis, which shows strong financial health ratios just getting stronger. The best retailers know, however well you’re doing, there is no time to sit back on your laurels. The directors of White Stuff are fully aware and “remain cautious”.
Sally Bailey at the helm, recognises a dual focus which works: happy customers and happy staff. “We continued to focus our efforts into making our customers happy”, she said, whilst the company had improved its ranking in the Times Top 100 Best Companies to Work For last year. We at SnapShop like that. Meanwhile, White Stuff is capitalising on eCommerce and cross-channel selling, as well as the launch of the large format Emporium store and a dipping of toes into the international pond.
Who would have thought the Boys from the White Stuff could pull off such a coup on the High Street?!
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Retail Spotlight - Past Times on brink of administration |
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Posted At: 04 January 2012 10:21 AM
Related Categories: Administrations, Retail, Retailers |
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Following the announcement of intention to appoint administrators by Past Times; we bring to you an overview of the retailer’s trading over the years and highlights of the latest news.
18/02/2010 - Past Times was hunting for new stores and intended to ramp up its online offer
23/09/2010 - Trading successfully from 115 stores across the UK and Ireland, retailer was looking to acquire a minimum of 30 locations in 2010
22/10/2010 - The gifts retailer opened 30 pop-up shops for Christmas and hired 400 extra staff
16/09/2011 - Following successful campaign in 2010, retailer was seeking a minimum of 60 locations to open in 2011
30/12/2011 - The board of Past Times, which is owned by Epic Private Equity, confirmed that it intends to appoint administrators in the New Year, placing approximately 1,000 jobs at risk
Legally, there must be a 10-day gap between an intention to enter administration being lodged with the High Court and its starting. This means the process is likely to start during the second week of January
Retailer Profile:
Past Times specialises in developing and selling quality products inspired by important design periods throughout history. The variety of products is extraordinary, ranging from household accessories and jewellery to gifts, toys, clothes, books, DVDs and much more. Past Times was founded in 1986 as a mail order company and opened its first store in Oxford in June 1987. With products aimed at the Middle sector of its market, Past Times has over 140 stores throughout the UK and Ireland, and a transactional website.
Financial Health:
7months ended 26 December 2009
The company increased both its high street and outlet presence during the period, opening a total of 24 new stores and ended the period with a total of 120 across the UK. This included the opening of the two largest turnover stores as the company shifted focus to higher turnover stores in key locations. Store sales in the eight months to December 2009 were £32.3m, compared to £26.7m in the comparable period, an increase of 21%
Year ended 25 December 2010
The company increased both its high street and outlet presence during the period, opening a total of 35 new stores and ended the period with a total of 141 stores across the UK and Ireland. The company continues to focus on stores that are in key locations and those with high contributions, accordingly 11 stores were closed during the period.
To keep a tab on these retail administrations and financial health of over 2000 retailers, please subscribe to SnapShop with membership starting from only £96 pa.
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Retail Spotlight – D2 Jeans goes into administration |
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Posted At: 04 January 2012 10:00 AM
Related Categories: Administrations, Retail, Retailers, Store Closures |
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The festive period brought a spate of administrations across the high street with D2 jeans failing early in the New Year. We bring to you news highlights and information about the retailer’s performance over the years.
04/01/2010 - Fashion chain D2 became the first post-Christmas retail casualty, falling into administration
11/01/2010 - D2 was bought out of administration by its management team saving 44 stores out of 76 and 500 jobs
3/01/2012 - Store chain D2 Jeans collapsed into administration again, making 200 staff redundant and putting hundreds more jobs at risk. Administrators closed 19 UK stores - including six in Scotland - and laid off shop workers at the Ayrshire-based firm. The Scottish closures were in Clydebank, Falkirk, Glenrothes, Hamilton, Irvine and Paisley. D2's other 28 stores are being run as a going concern while a buyer is sought by administrators, BDO LLP.
As at 3/01/2012, the website has been shut – optimistically stating that it is “temporarily” out of service, whilst displaying the returns policy and list of stores which are trading.
Financial Health
SnapShop uses a well-tested and reliable score based on value added, that is, sales minus the cost of bought-in goods and services, also known as P2.
Key:
P2>175 – Very Strong
P2 >150 and <175 - Healthy
P2>125 and <150 – Fairly Healthy
P2>100 and <125 – Head Above Water
P2<100 – Very Worrying
To view retailers profile and more information on retail administrations for 2011-12 please subscribe to SnapShop.
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Retail Spotlight - Hawkin's Bazaar in administration |
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Posted At: 04 January 2012 00:34 AM
Related Categories: Administrations, Retail, Retailers |
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Following the collapse of the owner of toy and novelty gift chain Hawkin's Bazaar brand; we bring to you an overview of the retailer’s trading over the years and highlights of the collapse.
29/06/2010 – Hawkin’s Bazaar hired a senior TK Maxx executive as its new boss as the business ramped up its expansion plans
12/04/2011 - Bristol-based surveyor Williams Gunter Hardwick was reappointed to find 60 temporary units in major towns and cities across the UK in time for Christmas trading Hawkin's Bazaar
24/05/2011 – It was announced that the toy retailer Hawkin's Bazaar will open store in St David's in Cardiff
30/12/2011 - Hawkin's Bazaar brand collapsed into administration, putting 380 staff at risk
Financial Health
SnapShop uses a well-tested and reliable score based on value added, that is, sales minus the cost of bought-in goods and services, also known as P2.
Key:
P2>175 – Very Strong
P2 >150 and <175 - Healthy
P2>125 and <150 – Fairly Healthy
P2>100 and <125 – Head Above Water
P2<100 – Very Worrying
Company Announcement on Website
On 30 December 2011, Peter Saville, Fraser Gray and Anne O’Keefe of Zolfo Cooper LLP were appointed Joint Administrators of Tobar Group Holdings Limited and its subsidiaries (The Group).
Hawkin’s Bazaar customers in possession of gift vouchers may continue to exchange these for goods as normal in any of The Group’s stores. Those customers seeking to make returns should look, wherever possible, to visit their local store where they will be permitted to exchange their goods. Cash refunds will not be provided.
Statement from administrators can be read here.
Should you wish to stay up-to-date with retail administrations and news please subscribe to SnapShop online at any time or register to receive information packed newsletter for 3 months.
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And Finally - Missing baskets, World’s most expensive pie and Loo of the Year Awards |
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Posted At: 15 December 2011 13:37 PM
Related Categories: And Finally, Social Commentary |
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Retail quirkies of the month include:
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Half of the 300 baskets at Morrisons, in Aberystwyth, disappeared when the Welsh government imposed a 5p charge on carrier bags. The 5p charge for all single-use bags is aimed at reducing litter and avoiding unnecessary damage to the environment. Co-Operative confirmed that it had also lost a small number of baskets but there had not been a 'dramatic' loss
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The world’s most expensive mince pie is on the display for a month at the Marvellous Mince Pie Manufactory in The Exchange shopping centre in Ilford. Valued at £3,000, the mince pie was made using traditional ingredients including the highest-grade platinum leaf, holy water from Lourdes to bind the pastry, vanilla beans and cinnamon from eastern spice markets, and ambergris sugar which is derived from sperm whale secretions – health & safety won’t be very happy with that!
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Talking of the hospitality industry, JD Wetherspoon has been awarded for having the best toilets at the Loo of the Year Awards 2011 as well as being named the UK Trophy winner in the Corporate Provider category
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Retail Spotlight – Barratts Priceless plunges into administration |
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Posted At: 09 December 2011 14:17 PM
Related Categories: Administrations, Retail, Retailers, Store Closures |
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How cruel that quarter rent day is on Christmas day. When tills should be ringing, for some, there may only be the sound of doors slamming shut, including high street footwear retailer Barratts.
Following the recent news of collapse of Barratts Priceless for the second time, FSP has reviewed and updated the retailer records on SnapShop. Below is a summary of the retailer profile and highlights of the administration:
26/01/2009 - Shoe retailer Stylo's Barratts and Priceless Shoes collapsed into administration
19/02/2009 - The Ziff family rescued 160 Barratts and Priceless shops, , the remaining 220 stores were closed
20/03/2009 - Barratts Priceless appointed property agent CB Richard Ellis to renegotiate terms on the 160 stores it bought out of administration
19/03/2010 - Footwear retailer unveiled a new look for its Oxford Street flagship store
18/05/2010 – Barratts launched its first iPhone App and had plans to roll-out click & collect, targeted SMS marketing and promotions
3/12/2010 - Barratts has appointed John Hood, former managing director of footwear retailer Brantano, to the newly created role of brand director
8/12/2011 - The consolidated results for the 18 month period ending 31st July 2010 showed an operating profit after exceptional items of £8.6m from sales of £218.5m
10/02/2011 - Barratts has increased its email conversion rates after an overhaul of its e-commerce strategy
8/12/2011 – Reduced trading, increasing competition threatened Barratts ability to pay December’s quarterly rent bill, leading to collapse of chain thereby putting 3,840 jobs at risk. Given the gloomy economic backdrop, retail analysts are not confident that a buyer for the chain will be found
From the retailer’s own website, “On December 2011, Daniel Francis Butlers, Neville Barry Kahn and Adrian Peter Berry were appointed Joint Administrators and now manage the affairs, business and property of the Companies in Administration. The Joint Administrators act as agents of the Companies and contract without personal liability. The Joint Administrators are authorised by the Chartered Accountants in England and Wales. All licensed insolvency practitioners of Deloitte LLP are licensed in UK”.
With worsening consumer confidence, the run-up to Christmas is bound to bring more pain for the retail sector - how deep that pain will go? could this be avoided?
SnapShop provides information on 2,000+ retail fascias, including the Barratts fascias: Priceless, Shellys, Bacon Shoes
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