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Comet & Dixon's may close UK stores


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Old 16-05-2011, 14:36
Everything Goes
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Comet may be about to close its UK stores. This follows last weeks announcement of up to 10 store closures and 150 jobs will go.

Its hard to feel sorry for them as I had to take them to court once. Customer service is appalling. Back in the 80s to early 90s they were actually ok.

http://www.theregister.co.uk/2011/05...t_close_boost/

http://www.channelregister.co.uk/201...et_sales_fall/


Dixon's also face similar problems.

Dixon's UK rental bill is now more than 3 times its underlying profits. Dixons' UK liabilities, therefore, effectively outstrip its assets.

http://www.channelregister.co.uk/201...wedish_future/
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Old 16-05-2011, 14:39
Daedroth
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Dixon's closed almost all UK stores a few years ago, turning into smaller Currys stores. Dixon's also owns all the Currys and PC World stores, so I can't see them closing any of those stores, since they're still the UKs major electronic and computer retail stores.
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Old 16-05-2011, 14:41
eduble
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Comet may be about to close its UK stores. This follows last weeks announcement of up to 10 store closures and 150 jobs will go.

Its hard to feel sorry for them as I had to take them to court once. Customer service is appalling. Back in the 80s to early 90s they were actually ok.

http://www.theregister.co.uk/2011/05...t_close_boost/

http://www.channelregister.co.uk/201...et_sales_fall/


Dixon's also face similar problems.

Dixon's UK rental bill is now more than 3 times its underlying profits. Dixons' UK liabilities, therefore, effectively outstrip its assets.

http://www.channelregister.co.uk/201...wedish_future/
You can get the products they sell cheaper else where.
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Old 16-05-2011, 14:48
Tumble weed
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TBH it's only a matter of time before Currys and PC World merge their stores. They're starting to do it now anyway, but the old style PC World's just don't have a purpose really anymore. Especially as old style computers are pretty much dead and laptops are alot more powerful. Also with the advent of tablet pc's, PS3's and smart phones, the market has totally changed.
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Old 16-05-2011, 14:50
Daedroth
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TBH it's only a matter of time before Currys and PC World merge their stores. They're starting to do it now anyway, but the old style PC World's just don't have a purpose really anymore. Especially as old style computers are pretty much dead and laptops are alot more powerful. Also with the advent of tablet pc's, PS3's and smart phones, the market has totally changed.
I think they're having to, BestBuy is becoming popular in the UK.
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Old 16-05-2011, 14:50
ardwark
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Never good to hear of job losses but I am not surprised. I haven't shopped in either for years because their stores were always a bit ramshackle and dirty and their sales staff were piss poor wide boys.
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Old 16-05-2011, 14:51
Inkblot
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Back in the day Comet had mostly high street stores which relied on passing trade from local shoppers and those who worked nearby. Then they closed them and moved into the out-of-town shed market, which relies on people making a special journey just to buy something. I wonder whether this is a sign that the out-of-town shopping model is no longer correct, with high fuel costs and easy online shopping making driving to a warehouse a waste of time and money . The only out-of-town stores I use are garden centres. Everything else is either availlable in the high street or online.
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Old 16-05-2011, 14:52
bossoftheworld
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Shoot I have some Comet vouchers but wanted to save them for a while - looks like I'd better get them spent!
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Old 16-05-2011, 14:53
be more pacific
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Comet and DSG really shot themselves in the foot when they started two-tier pricing for in-store and Internet purchases. As the public grew more and more web-savvy, it became increasingly difficult to justify adding the store overheads to the price. Hell, you could even buy an item cheaply online and collect it from the exact same branch which was charging a considerably higher in-store price. Wacky.
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Old 16-05-2011, 14:55
Everything Goes
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Dixon's closed almost all UK stores a few years ago, turning into smaller Currys stores. Dixon's also owns all the Currys and PC World stores, so I can't see them closing any of those stores, since they're still the UKs major electronic and computer retail stores.
Any business who's rental bill is more than 3 times its underlying profits has a huge problem with its business model
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Old 16-05-2011, 14:56
gashead
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What a loss to the High Street they'll be if they do close. Where will people go if they want incorrect advice from poorly trained sales and 'technical' staff, whose only real aim is to sell you an over-priced extended warranty? Call me old-fashioned, but you just don't get that sort of service on-line.
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Old 16-05-2011, 14:59
Keiō Line
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Comet and DSG really shot themselves in the foot when they started two-tier pricing for in-store and Internet purchases. As the public grew more and more web-savvy, it became increasingly difficult to justify adding the store overheads to the price. Hell, you could even buy an item cheaply online and collect it from the exact same branch which was charging a considerably higher in-store price. Wacky.
What else can they do?

You can not charge "interent prices" in stores. As you say the overheads are way too much for that.

It is cheaper for them to have goods deliverd to the branch than to your home. So offering that option makes good sense.
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Old 16-05-2011, 15:02
Strok
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Ah god no, could they at least let the warranty on my new telly run out first before they close? I only bought it in November.
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Old 16-05-2011, 15:06
be more pacific
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What else can they do?

You can not charge "interent prices" in stores. As you say the overheads are way too much for that.

It is cheaper for them to have goods deliverd to the branch than to your home. So offering that option makes good sense.
In many cases, the "buy online and collect in-store" items are ready to collect straight from your local branch's own stock within 30 minutes. Obviously, this is a huge disincentive to ever deal direct with a branch and pay a premium for their service and overheads.

The most obvious solution would have been to completely separate the cheaper online store from the actual branches. DSG and Comet already have this infrastructure in place with the Dixons and Laskys online brands, but they choose not to sever the ties.
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Old 16-05-2011, 15:06
Andrue
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Oh dear.
What a shame.
Never mind.

Poorly trained staff (usually spotty oiks bunking off from school), questionable pricing and they never seemed to actually hold any stock. Good riddance to bad rubbish.

Mind you I haven't bought anything off the high street for years now. It's time they were all torn down and something more interesting put in their place. Parks. Cinemas. Cafes. I might just be tempted to go back into town centres if they did that.
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Old 16-05-2011, 15:09
stvn758
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Comet stores now sell at the same price as their website. Not the first time Comet has been sold, probably close a few lossmaking stores and keep the ones that make money.
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Old 16-05-2011, 15:09
Daedroth
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Oh dear.
What a shame.
Never mind.

Poorly trained staff (usually spotty oiks bunking off from school), questionable pricing and they never seemed to actually hold any stock. Good riddance to bad rubbish.

Mind you I haven't bought anything off the high street for years now. It's time they were all torn down and something more interesting put in their place. Parks. Cinemas. Cafes. I might just be tempted to go back into town centres if they did that.
Why not get rid of all high street shops and replace them with parks, cinemas and cafes instead?
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Old 16-05-2011, 15:11
loz
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Back in the day Comet had mostly high street stores which relied on passing trade from local shoppers and those who worked nearby. Then they closed them and moved into the out-of-town shed market, which relies on people making a special journey just to buy something. I wonder whether this is a sign that the out-of-town shopping model is no longer correct, with high fuel costs and easy online shopping making driving to a warehouse a waste of time and money . The only out-of-town stores I use are garden centres. Everything else is either availlable in the high street or online.
Though surely that all depends where you live. So called "out of town" shopping is often close to suburbs where people live.

I would have to pass all the "out of town" shopping before I got to the high street. So for me its the other way around. I never go to the high street because of the high fuel and parking costs (and lack of parking), or public transport which is ridiculously expensive and infrequent.

Mind you, as you rightly say, online is cheaper and sometimes more convenient than both.
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Old 16-05-2011, 15:18
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A Comet store manager once told me they make NO profit on electrical items, only on the guarantees they promote heavily
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Old 16-05-2011, 15:26
Inkblot
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Though surely that all depends where you live. So called "out of town" shopping is often close to suburbs where people live.

I would have to pass all the "out of town" shopping before I got to the high street. So for me its the other way around. I never go to the high street because of the high fuel and parking costs (and lack of parking), or public transport which is ridiculously expensive and infrequent.

Mind you, as you rightly say, online is cheaper and sometimes more convenient than both.
I see what you mean, but the Comet model, at least the ones I've seen, was to locate on sites without much else of interest apart from maybe a Homebase, Currys or an Argos. You wouldn't just happen to be shopping in the area and decide to drop in. The catchment area could include quite a large population but I'm wondering whether the business model has had its day, not for everyone, but for an increasing number of people who don't see value in driving any distance just to buy a washing machine. If you can buy it online that's a better option. If you can walk to the high street, that's a better option. Out-of-town sheds are past their best-by date.
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Old 16-05-2011, 15:28
Tumble weed
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Why not get rid of all high street shops and replace them with parks, cinemas and cafes instead?
http://www.youtube.com/watch?v=gmfH6AvcCYk
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Old 16-05-2011, 15:29
linkinpark875
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Comet may be about to close its UK stores. This follows last weeks announcement of up to 10 store closures and 150 jobs will go.

Its hard to feel sorry for them as I had to take them to court once. Customer service is appalling. Back in the 80s to early 90s they were actually ok.

http://www.theregister.co.uk/2011/05...t_close_boost/

http://www.channelregister.co.uk/201...et_sales_fall/


Dixon's also face similar problems.

Dixon's UK rental bill is now more than 3 times its underlying profits. Dixons' UK liabilities, therefore, effectively outstrip its assets.

http://www.channelregister.co.uk/201...wedish_future/
Title is misleading as it's not all stores only ten.

And what's it on this forum each shop that goes into administration or closes shops there's a bandwagon of people saying they deserve to close?

It's a poor attitude as the retail industry is vital to the economy and jobs.
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Old 16-05-2011, 15:32
linkinpark875
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TBH it's only a matter of time before Currys and PC World merge their stores. They're starting to do it now anyway, but the old style PC World's just don't have a purpose really anymore. Especially as old style computers are pretty much dead and laptops are alot more powerful. Also with the advent of tablet pc's, PS3's and smart phones, the market has totally changed.
That won't happen I'll tell you why it won't work.

The PC World/Currys shops are in towns without a PC World.

Larger PC World branches have massive range of computer accessories and PC's the smaller merged shops are limited.

What it does though is make it look a stronger brand I go there for PC stuff before Comet now. The former shops were just called Currys so why rebrand them 'Dixons' the point of the exerciser is to offer better PC products and move the dishwashers and washing machines to the back?
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Old 16-05-2011, 15:38
Justabloke
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What a loss to the High Street they'll be if they do close. Where will people go if they want incorrect advice from poorly trained sales and 'technical' staff, whose only real aim is to sell you an over-priced extended warranty? Call me old-fashioned, but you just don't get that sort of service on-line.
Actually, I think if you ask in the technical sub forum of any non-technical discussion baord thats esxactly what you'll get
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Old 16-05-2011, 15:41
be more pacific
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Title is misleading as it's not all stores only ten.

And what's it on this forum each shop that goes into administration or closes shops there's a bandwagon of people saying they deserve to close?

It's a poor attitude as the retail industry is vital to the economy and jobs.
I suppose it's a perception that stores like Woolies, Zavvi, HMV and Comet are/were conning people by charging significantly higher prices than online competitors. Just like the old perception that the small retailers must have been conning people by charging significantly higher prices than the big chains.

It's often the case that big stores like Woolies and Comet drove smaller retailers - who often did give better service - out of business. What goes around comes around.
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