Zavvi placed into administration
- Thread starter PaulStat
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well, I work for jessops and 2 of our head honchoes (head of retail ops and the marketing director) resigned yesterday, and BBC radio4 announced that they think we're gonna be one of the next to go.......................it's been on the cards for a very long time but we keep managing to skip it!
It's a hard one as companies like Canon would be MASSIVELY compromised if we were to go, as there are no other major high street presence in the camera market now and we shifted over 60% of canons stock last year, so a complete fold seems less likely than a merger with perhaps a manufacturer.....
Waddya think? im sure we'll find out soon enough.
PS i'm sat here looking at figures for the stores and we're way up LFL and hitting some fairly major money (especially my store, considering how little staff etc we have in a small town, but unfortunately not all stores are as good as mine
)
Tom.
It's a hard one as companies like Canon would be MASSIVELY compromised if we were to go, as there are no other major high street presence in the camera market now and we shifted over 60% of canons stock last year, so a complete fold seems less likely than a merger with perhaps a manufacturer.....
Waddya think? im sure we'll find out soon enough.
PS i'm sat here looking at figures for the stores and we're way up LFL and hitting some fairly major money (especially my store, considering how little staff etc we have in a small town, but unfortunately not all stores are as good as mine
)Tom.
Caporegime
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Alltogether now.
'And now, the end is near, its time to face, the final curtain'
'And now, the end is near, its time to face, the final curtain'
Associate
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Got to say I won't miss them other than for maybe picking up the odd Blue-Ray when I can't be bothered to wait for delivery, through HMV usually cheaper.
I reckon there's a good chance Jessops will go next, they are simply too expensive when compared to internet prices and i supose a lot of people who just want a basic camera probably just pick on up from Argos/Asda/Tesco.
I reckon there's a good chance Jessops will go next, they are simply too expensive when compared to internet prices and i supose a lot of people who just want a basic camera probably just pick on up from Argos/Asda/Tesco.
Fox is right of course, this is how one runs a business today. However it is possible that this modern way of running a business will be shown to be too vulnerable to random external shocks. One of the outcomes of this recession might be a return to more conservative business practices.[TW]Fox;13148239 said:
I've always thought that Jessops would be okay as they have such a dominance on the highstreet. If significant demand for photography kit exists a lot of people will only want to buy on the highstreet and Jessops is and will remain one of the best choices for this.
60% of Cannon's UK sales went through Jessops? Wow, that's amazing. I'm surprised Cannon would get into a situation where they were so dependent on a third party retailer. A merger as you suggest seems reasonable. Or even manufacture specific headline stores - like Apple's highstreet stores.
With the Waltons famliy combined total of $81.8 billion.
yep they could snap Tesco like a twig If they wanted to.
I seem to recall watching a video in Business Studies about Tesco's expansion to America. They had some Wal Mart Directors on saying that they were concerned since Tesco's had such good marketing strategies and profit margins.
Caporegime
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Some towns in America is practically built around a Walmart, as in everyone works there and it's where you would go get everything. I find it hard to believe that Tesco would find it easy to make a dent in towns like that.
I dont know if you have ever been to wal-mart
but there deli dept is the best ever.
You have a taste of what you want to buy i.e cheese/ham/beef and so on.
And I dont mean a small piece of meat you get a FULL slice of
what ever you are buying.
And the UK food they sell there are cheaper then here
and its below the exchange rate.
There are loads they could do.
but as I say If they wanted to.
What do you mean by more conservative? As far as I know you get given a credit limit with your supplier and at the end of the month + 30 days (this number can vary) is the period you pay them back. Speaking to people who have been in business for a while it has been like for a while now. Many businesses are being made to suffer now because the banks are being funny with their overdrafts and their credit is being cut with suppliers as well.
This current crisis when it comes towards credit in general has not been seen by most so it is all well and good saying businesses should be more careful and I'm not no expert in the history of finance but I doubt it has been as severe as this in a long time. For many businesses they will never experience anything like this.
Man of Honour
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In one of those delicious ironies that life provides the thing that prevents Tesco from getting hugely bigger in the UK (the Monopolies and Mergers Commission) is also quite possibly the thing most likely to prevent Asda/Walmart from attempting to take it down. Walmart does appear to have vastly bigger cash reserves and potential income than Tesco currently which would mean it has a distinct advantage in a head to head although we've got to consider whether Walmart would rate the British market highly enough to dedicate enough of its resources to attempt to crush Tesco (frankly I'd suspect it isn't worth it).
Essentially if you are just looking at funding then Walmart are a behemoth, Tesco are merely a giant in those terms but whether Walmart could 'snap' Tesco at the moment is a bit of a moot point as it doesn't seem likely they'd be inclined to. A more sensible option would be to see what impact the current situation has on them in the short to medium term and then evaluate courses of action.
I guess I mean being less reliant on credit in general, both from suppliers and banks. Operate the business in a more resilient way with more reserves on hand to cope with random difficulties encountered. It's not the most efficient, dynamic way to do things - but is more robust. The more fragile businesses today, the ones living/operating on the rolling few weeks of credit are most vulnerable now even though they may have been the most profitable in recent years.
No, their business model is pretty solid and while they have been through rough patches, they are extremely profitable with their operations.
[TW]Fox;13148239 said:
Fox is right, but the length to which some business (tesco as an example) squeeze their smaller suppliers is detrimental to the working capital of small businesses. And as you said, it is the lifeblood of any business.
This aspect needs to change.
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Seems a little backwards to me! what are they teaching kids these days lol!
Surely ripping off your suppliers is a bonus compared to actual profit made from "ethical" retail....its all artficial hype, an accident waiting to happen as far as I am concerned... I find it all rather ammusing, I mean, you cant run a business based on interest gained on basicly stealing from your suppliers lol!
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<randomcompany> is in trouble
their (products|brand) has been (overpriced|outdated) for (1-122) years now. I am (not) (surprised|saddened|shocked|worried) by this.
if(company is big) Why can't (Gordon|The EU|Aliens) help them!
their (products|brand) has been (overpriced|outdated) for (1-122) years now. I am (not) (surprised|saddened|shocked|worried) by this.
if(company is big) Why can't (Gordon|The EU|Aliens) help them!