High Street Crisis

[Hotman]

It basically comes down to Porter's generic strategies of cost leadership vs product differentiation - those that wish to stay on the high st will either be Poundworld (mr pikey's bus fare being cheaper than postage by ordering online), or those differentiating their offering through service

 

[Cricko]

There have never been more people employed in the UK. Since 2008 there have been 800,000 net jobs created. Public sector jobs are down 400,000 so there have been 1.2m net private sector jobs created in the last 5 years.

The population has also increased in that period by about 5 million? so it's not relevant IMO to say more jobs have been created per populous.

Unemployment is low by global comparison. I'm not saying all is well because it clearly isn't. A lot of those jobs are part-time and unemployment is largely structural i.e. those people would still be unemployed if the economy was booming for various reasons.

This is half the problem, the employers have now the upper hand in any job market and many jobs part/timer or not are based on minimum wage which gives no insenitive for those already stuck on benefits to even look for the so called job.



This is nonsense. Companies fail every day regardless of the economic conditions. Thomas Cook, HMV, Jessops, Woolworths and the rest failed because their business model was no longer relevant in the model economy. It is to the benefit of the wider economy that those businesses fail so that capital can be allocated to more productive businesses.

What actual new or old companies bar a few can you name that are revelling in this wonderful climate. Failure of course happens across the spectre at times.I don't see much gain ATM, banks don't lend, companies sit on the fence, others cut down on the workforce as there is no feel good factor about anything positive.When the likes of the Government are shown to be inept at every stage it hardly gives any consolation to the general public let alone business.

That I'm afraid is how a capitalist economy works. Yes, it is a traumatic experience for those involved but insulating weak and poor companies (for example the banks) has a wider impact as it acts as a drag on the economy.

Oh come on Neil . I respect your views but you honestly you think the way we are heading is not dragging the economy down?

No doubt you'll say I'm talking rubbish, Cricko, but what is your alternative? You and I agree that the banks should not have been bailed out but you cannot simultaneously suggest that Thomas Cook should be saved.

No you far from talk rubbish, but I would say you only seem to look at the picture from a figures based opinion. The Banks . well lets not go there.

I would like to us stop paying out such stupid amounts abroad including to the corrupt EU.

I would like to see us shut the door to immigration for now as the main reason they come here is to use our benefits system.

I would like to see Parents take responsibility for bringing kids into this world and not automatically think they have a free ride on the state.

I would like to see people have a sense of pride in this country once more.

I would like to see large companies that take the **** avoiding tax being brought to justice.

I would like to see any of the current government live in the shoes of those they are persecuting.

I would like to see job creation at a basic level, with programmes that are akin to local areas not nationwide, whether it be learning to plaster a wall or become a nurse.

I would like to see this and any other government in future stopped from having closed votes,manipulating the press and freedom of knowledge to all people ( barring the obvious OFSA)

I actually would like to see area control of where you live instead of being controlled by some faceless department within the HOC.

I could go on and on but I am sure you get my gist.

 

[MK Shrimper]

Cricko for PM! :clap:

 

[OldBlueLady]

Sounds good to me too!

Can I add in "I would like to see jobs awarded on merit not on racial or gender basis"?

 

[Mad Cyril]

I had a high street crisis when I found out the underground toilets near Mothercare no longer exist.

 

[Uncle Leo]

Betting shops are the ones I don't understand.

Surely this makes more sense as an on-line business?

These things are the driver behind retail betting nowadays.

Responsible for over half of our gross win now and, as chapperzUK alludes to, the social aspect of betting is still important. As I mentioned on another thread, Ladbrokes are opening 150 shops this year (average during the last decade was about 25) so we still see a future in the side of the business.

 

[Uncle Leo]

Thomas Cook cutting 2,500 jobs, about 60% of its workforce if I heard right. Apparently a lot of these will be stores acquired from Co-op 3 years ago.

Again, competing with online, however travel agents I can see having a reason to have a face to face service as some people will like to discuss the holiday with them. I personally booked everything for this years holiday online in seperate parts (accomodation/car/flight etc) and saved a fortune even over Virgin Holidays online. I do understand why some would like to actually go in and talk to one of the advisers though.

We booked our family holiday in a Thomas Cook this year. As it's our first time taking the children overseas (three hour flight with two year old twins - I can't wait!) we wanted to chat our options through with an adviser and I must say the agent was excellent.

Generally speaking though, holiday booking is easier to do online.

 

[Yorkshire Blue]

This is an area I've invested a lot of time in attempting to understand. At the moment I'm helping a number of overseas brand establish themselves in the UK, particularly service-based retail (whether service-led or product with ancillary customer service) or food and beverage. 'Death' of the high street has previously been due to the pension funds maintaining unrealistic rents to maintain asset value at the risk of empty properties, but that's now changing fortunately. I might be crazy, but I'm focusing my business in retail now.

Interesting.

Tell me more.

I would like to see job creation at a basic level, with programmes that are akin to local areas not nationwide, whether it be learning to plaster a wall or become a nurse.

I actually would like to see area control of where you live instead of being controlled by some faceless department within the HOC.

Don't disagree with these at all, but I don't get why you are knocking central government for not delivering local solutions. Criticism for this should surely be with local government?

These things are the driver behind retail betting nowadays.

Responsible for over half of our gross win now and, as chapperzUK alludes to, the social aspect of betting is still important. As I mentioned on another thread, Ladbrokes are opening 150 shops this year (average during the last decade was about 25) so we still see a future in the side of the business.

Cheers

Have never done any gambling licensing laws, so what's the story about where you can and can't put them? Are they not allowed in pubs? Because I'd have thought it would be cheaper to sub-let a space in a pub where you've already got the footfall and are nicer places to spend time than gambling shops. Are you allowed to sell food and drink and make them nicer places to spend time in?

ps That's Coral rather than your lot though isn't it!?!

 

[Cricko]

Actually a very good article in today's Barna paper YB, not about the high street but seems to agree with me..

http://www.guardian.co.uk/commentisfree/2013/mar/08/britain-economy-long-term-fix

"For example, infrastructural investment needs to be co-ordinated with the broader industrial strategy. Infrastructure is by definition location-specific, so depending on the industries you want to promote, you will have to build different types of it in different places. Similarly with education and skills. Without there being some national strategy, it is difficult for educators to know what kinds of engineers or technicians to produce, and for potential students to know what professions to study for"

 

[Neil_F]

"For example, infrastructural investment needs to be co-ordinated with the broader industrial strategy. Infrastructure is by definition location-specific, so depending on the industries you want to promote, you will have to build different types of it in different places. Similarly with education and skills. Without there being some national strategy, it is difficult for educators to know what kinds of engineers or technicians to produce, and for potential students to know what professions to study for"

Hmmm... slight problem here. Who decides what the industrial strategy should be? It's a nice idea but you run into the problem that government cannot possibly know what will be strategically important in 10 years time and has a high possibility of getting it wrong. The governments of the last 50 years haven't been able to forecast the economic position in 12 months so why do you think they can do so in 12 years?

It is an interesting question to consider what an industrial strategy would have looked like in 2000. Britain led the way in finance and services. A lot of emphasis would have been placed on that. Politicians being politicians would have emphasised manufacturing in the old industrial heartland, probably car manufacturing and steel. Such an industrial strategy would have been hit even harder by the 2008 crash and manufacturing would never have been able to compete against China without state subsidy, which is illegal under EU law anyway.

What would an industrial strategy look like today? Politicians would pick their pet projects: wind farms would be one for sure, pharma research and some high end manufacturing as well (robotics, offshore drilling etc). Would the world still be the same place when all these investment comes onstream in 10 years? What about in 20 years when those products of the new focused education system began looking for jobs. Would we need so many wind farm engineers in 2035?

Industrial strategies are brilliant when you have people who can accurately forecast 20 years in to the future. I'm confident in saying that no one in government can do that. Vibrant diverse economies allocate capital on a small scale. The market takes the risk of what will or won't be the next big thing. What works creates jobs and makes money; what doesn't goes bust and capital gets allocated elsewhere.

When government sets the strategy it is all of nothing. If it works then great. If it doesn't work then all the economy's eggs are in one basket and total ruin ensues...

 

[Napster]

Funnily enough I bet no-one would have predicted how well the Uk car industry would be doing now.