Debenhams Is 'Winding Down Its Operations'

[Janus 28]

Bonmarchè is one of the latest casualties.
https://www.bbc.co.uk/news/business-55159180

[Westie1889 0]

The problems in these businesses have been evident for a while.

Debenhams never created a position for itself in the market, featuring a raft of franchises and a collection of poor ‘designer’ brands that were effectively house labels being created just for Debenhams.

Of all the department stores they had the poorest offer both instore and online so no surprise they have gone in the current climate.

Arcadia used to be a good group and contrary to some thoughts Phillip Green did know what he was doing. However, he then seemed to lose interest and took huge tax free dividends (£1.2bn paid to his wife one year) which then starved the businesses of direction and cash for investment into their product offer and online platforms.

 

It’s tragic for the employees and the taxpayer will likely take a hit through the pension scheme, also the space on high streets will be a problem to fill but like many things after Covid it offers a chance to re-think what the high street is for.

 

I work for a large retailer and High Street / City Centre shops are 50% down at the moment, large malls like Meadowhall are not doing much better but more local retail parks are booming as are online sales.

 

This trend will change a bit once the pandemic is over but will not go back to how it was as people will work more from home starving City Centres and High Streets of footfall. 
 

I think more local shopping is a good thing as it offers the chance for good independents to grow, but there will need to be major investment in City Centres away from retail and offices towards more leisure, hospitality and residential development.

 

 

[nightrider 13]

On 01/12/2020 at 11:35, melthebell said:

I disagree, all these shops that are failing are having issues anyway and are failing to adapt, too big, too old. Most are in massive buildings that will be massively expensive to rent, run. they fail to adapt to change.

The pandemic is just the thing thats pushed them over the edge, they were slowly moving to the edge anyway.

I went in Debenhams on the Moor a few years ago and it was just awful. Stuff piled up all over and not much choice on any products. Never went in again. Not surprised they went under.

[melthebell 863]

5 hours ago, Westie1889 said:

 

I think more local shopping is a good thing as it offers the chance for good independents to grow, but there will need to be major investment in City Centres away from retail and offices towards more leisure, hospitality and residential development.

 

 

Funny thing is when you look back to old pictures of say "sheffield" what is now the city centre was just sheffield, full of residential streets, maybe we are moving back to that type of thing, areas of residential dwellings as well as offices, the odd shop and cafe etc, rather than just wall to wall big shops?

[Baron99 795]

29 minutes ago, melthebell said:

Funny thing is when you look back to old pictures of say "sheffield" what is now the city centre was just sheffield, full of residential streets, maybe we are moving back to that type of thing, areas of residential dwellings as well as offices, the odd shop and cafe etc, rather than just wall to wall big shops?

Well if you think about it, we're having the retailers deliver more goods to our doors than we were say even 5 or 6 years ago, including fresh produce, just like people did up until the late 60's early 70's, rather than us having to go to them. 

 

I remember when we first moved into Nether Edge, there was an old co-op type store, Gower's & Burgin's, with a shop boy on a bike who woud make deliveries. 

 

We're beginning to go full circle. 

Edited December 3, 2020 by Baron99

[Janus 28]

Mike Ashley is in talks to attempt a rescue.
https://www.bbc.com/news/business-55212757

[geared 315]

From the sounds of it he wants the name and a few of the stores he considers to be a going concern for him.

 

Won't be anywhere near the kind of money he last offered either.

[geared 315]

It's only sensible, he will already have plenty of stores on the highstreet and won't want to end up with his own stores fighting over customers.

 

There's issues with the leases on some places as well, high rent, long contracts with yearly increases.  Exactly the sort of thing he's dead against.

[the_bloke 17]

For those people that think that Debenhams is somehow not performing very well online, or doesn't achieve much traffic; their website pulls in virtually equal numbers to John Lewis, and last year accounted for around a third of sales (this year, it's considerably more). It's worth mentioning, as people seem to think JL beyond any sort of reproach.

[Bargepole23 337]

8 hours ago, the_bloke said:

For those people that think that Debenhams is somehow not performing very well online, or doesn't achieve much traffic; their website pulls in virtually equal numbers to John Lewis, and last year accounted for around a third of sales (this year, it's considerably more). It's worth mentioning, as people seem to think JL beyond any sort of reproach.

JL online sales were over $2 billion last year, Debenhams just under a quarter of that. 

[Westie1889 0]

3 minutes ago, Bargepole23 said:

JL online sales were over $2 billion last year, Debenhams just under a quarter of that. 

Was just going to say similar. JL £1.67bn online in the 2019 accounts and Debenhams around one quarter of that as you say.

If they are getting similar traffic to the site as JL and delivering 75% less sales it shows just how bad they are as that takes some doing.

ultimately you can have all the traffic you want but conversion is key, customers clearly don’t want what they are selling.

Mike Ashley will get a few stores but also in-house brands as that’s what he’s about, pick them up cheaply along with the stock and then sell them across his other stores.

He’s very good at what he does, even if his methods are questionable.

[the_bloke 17]

15 hours ago, Bargepole23 said:

JL online sales were over $2 billion last year, Debenhams just under a quarter of that. 

Where are you getting sales revenue for Debenhams from? As they have no shareholders, there isn't an annual report to quote.

 

Is that the total online sales for John Lewis the brand, or John Lewis the partnership?