Retail News Round-up
There has been a lot of business news and announcements about the high street recently so here is a round up of the bad and the good news…
The high street icon HMV announced on Monday that they will file for administration due to lack of sales and pressure from on-line sales.
Stores are expected to stay open until a final decision has been made by the Deloitte administrators however 4,350 employees in 239 stores in the UK are under threat.
Only yesterday we heard that Blockbuster have also called in Deloitte to try and find a buyer for their stores to save as many of the 74,190 jobs as possible.
On Friday, Jessops called it quits with most jobs lost last week. They cited increasing competition from supermarkets and the increasing good quality of smart phone cameras as their reasons for falling sales and demand.
Why they failed
Blockbuster and Jessops seem to have failed by not diversifying enough and relying on traditional customer demands to stay in business. However with the increasing popularity in on-line streaming services and the increase in photography apps, both stores have failed to keep up.
HMV have lost out to the on-line market and downloading music. Additionally their expansion into live music and sales of gadgets have not been the success they thought it would be. There is hope they will still exist as an on-line service but the high street stores are in jeopardy.
However this morning we have received great news from the high street, demonstrating that success can be made:
Primark this morning have revealed that their sales have increased by a quarter in the last three months. Trade at the stores were more intense than they expected and this coupled with a drop in cotton prices, resulted in a great result to end 2012.
The Dixons group which owns Curries and PC World has seen sales up 7% from the last Christmas period. This is despite of the fire sale at Comet however their margins have been squeezed due to some store closures and openings. The group as a whole have other concerns in southern Europe and with their French retailer Pixmania, however the UK side of the business has performed well.
Finally, on-line bidding auction site Ebay has seen a rise in shares due an 18% jump in sales. The growth was largely put down to the growth in their mobile service offering and Christmas sales.
These three retail offerings prove that success can be found on the high street or on-line if you are agile enough to move and develop with the times and the changing requirements from customers/
If you are concerned over the future of your business, you should maybe start considering alternative finance options in order to make your business more secure. Cash flow is vital to the stability of any business so if you are concerned about the strength of your cash flow, it might be worth considering invoice finance options.
All businesses are struggling in this economy and this is seen across the high street. However many businesses are striving through diversification, improvement of services and developing the service to cater to developing customer needs.