Originally Posted by malpasc:
“Some people are probably listing places they wouldn't mind seeing in administration, rather than what would realistically could be next in administration.
Tesco are still massively profitable. Their profits have gone downhill because they took their eye off the ball when it came to their core supermarket business, but they're not going bankrupt just yet.
People always bring up WH Smith, but their airport and train station stores make an absolute killing, plus they have a massive magazine and newspaper distribution arm which means they're going nowhere.
BHS could have been seen a mile off once it was spun out of the Arcadia group of companies. Regardless of financial fiddling, it was a Woolworths waiting to happen - dated and pointless. Even if it hadn't have gone down the pan this year it would have happened sooner or later unless some miracle overhaul had occurred.”
Their High Street stores were expensive enough for confectionery, crisps and soft drinks, yet they are even more expensive at rail stations, hospitals, motorway service stations and hospitals.
But they get lots of business at rail stations and airports for confectionery, crisps and soft drinks because they are so conveniently placed after people who are very thirsty and hungry get off the trains and planes and before they get on the trains and planes, and they are the only shop at the station that sells such stuff. They can afford to charge so much more at these places.
For newspapers, magazines and TV papers, Smith's can't charge more than the price shown on the papers and mags, so they can't make an extra big profit on those. And not selling well on confectionery, crisps and soft drinks in High Street stores, they have been forced to close High Street stores left right and centre.