Best buy to close all shops :O)

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I'll miss them - cheapest place to buy batteries for my film Nikon!
 
I wonder if there will be any closing bargains?
 
Too many overheads for businesses of this nature to survive.

It's the main reason I closed this year. Business rates are excessive and increasing as they are still based on the all time high 2007 rents of commerical property.

Landlords expecting unrealistic rents for property.

Building like the one pictured in the link will be in the region of £1 Million a year in rent and rates on a major industrial park in the South, plus salaries. That's a $hit load of TV's you have to sell to break even, never mind make a profit.

Actually there's an article about rates in the FT today:-

Retailers face
 
Red C220 said:
Building like the one pictured in the link will be in the region of £1 Million a year in rent and rates on a major industrial park in the South, plus salaries. That's a $hit load of TV's you have to sell to break even, never mind make a profit.
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I have to say, you look at a lot of retail places and wonder how on earth they can survive, particuarly slow selling stuff such as furniture.

I can only assume margins must be immense, and I guess that's the problem with electrical stuff, the market is so competitive there's no scope for large margins.
 
Red C220 said:
Landlords expecting unrealistic rents for property.
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I don't get this - and maybe this is why I am not a landlord, but either people are still paying the rents and occupying unoccupied property, or unoccupied property is left empty and the landlord is earning nothing - is it not better in the latter situation to lower rents as 80% of what you were charging must be better than 100% of nothing, or is the former the case and there are no problems finding new occupants?
 
JohnEBoy said:
I don't get this - and maybe this is why I am not a landlord, but either people are still paying the rents and occupying unoccupied property, or unoccupied property is left empty and the landlord is earning nothing - is it not better in the latter situation to lower rents as 80% of what you were charging must be better than 100% of nothing, or is the former the case and there are no problems finding new occupants?
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Because landlords are opportunists, living in past times where commercial property's were in short supply.

It's worse now as landlords have to pay business rates on empty property.
 
^^^^^ And so they should. Their property still benefits from many public services such as fire and police.
 
I always found it strange that they opened physical stores.. Would have worked much better if they had invested a lot more in the on line business instead of retail outlets as their website was total junk.

The days of currys/comet etc are limited.
 
Some Landlords refuse to accept lower rents - typically the large portfolio as 'crystallising' at a lower rental value will actually reduce the capital value of an entire estate or shopping centre for instance. To a degree they prefer the loss of income.

There are other landlords who can't afford the rates and whom have to let at any price.

The empty rating legislation as usual has been a complete flop. It wa meant to make sure that property was developed and not left empty. Now if you tour the run down parts of a city you will see plenty of hoardings where landlords have demolished property rather than redevelop at a time when property is not easy to let.

The sort of places that this firm operated in are typically owned by Pension Funds. Write down all of the estates in values who suffers?
 
I had a hunch it would end in tears. For the staff especially bad before Christmas.
 
Rory said:
I have to say, you look at a lot of retail places and wonder how on earth they can survive, particuarly slow selling stuff such as furniture.

I can only assume margins must be immense, and I guess that's the problem with electrical stuff, the market is so competitive there's no scope for large margins.
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Furniture, beds, curtains, interior furnishings, all that malarky will have large margins.

Electrical stuff has bugger all margin in it, which is why I've always wondered how any of these huge places operated.
 
I know of two people looking to rent units. One making sandwiches in medium volumes and high margins, the other making cars in small volumes and I imagine small margins. Not sure I'd want to be in either position really. Rents, rates, material costs are all so high, yet customers always want a bargain.
 
And why have amazon done so well..... low overheads and partnerships with smaller businesses - essentially free stock.
 
nick mercedes said:
Bleak times for retailing...
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I wish someone would tell my missus - it's already becoming difficult to move around the house, it's so stuffed full of Christmas presents. :(
 
A lot of the "warehouse" out of town retail units are owned by property investment companies. A few unoccupied units will hardly impact on the funds overall yield. Often (if there are influxes of money) the empty units are refurbished and then offered at higher rents.

It was historical that commercial property was leased out on rolling 3/5 year rentals with automatic uplift in rents. And this is how it is sold to investors as a yield investment over a capital one.

I can remember at one investment dinner I had an IFA tell me that property investing (commercial) was the best asset class and that our classifying it in the same category as equities (real assets) against monetary assets (bonds, gilts) and therefore at a higher risk rate was stupid and we didn't know what we were doing.

That was back in 2005 when property funds were booming.

I was polite..............just.:D
 
crockers said:
I can remember at one investment dinner I had an IFA tell me that property investing (commercial) was the best asset class and that our classifying it in the same category as equities (real assets) against monetary assets (bonds, gilts) and therefore at a higher risk rate was stupid and we didn't know what we were doing.

That was back in 2005 when property funds were booming.
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We had one provided by work maybe 10yrs ago and he pushed commerical property for our pension funds - he told us he had 90% of his own pension fund in commercial property.
 
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