Companies That You Expect to Disappear Soon

[Darandio]

Tesco 's launch of its own discount chain 'Jack's' hasn't exactly set the retail world ablaze. Has anyone here shopped in one?

I think they have already turned one of the first ones back into a Tesco? Doesn't seem like it took off prior to the current situation, I cannot really see them ploughing into an expansion of the brand now.

 

[SuspectUsual]

Tesco 's launch of its own discount chain 'Jack's' hasn't exactly set the retail world ablaze. Has anyone here shopped in one?

I had a wander round the one in St Helens about 18 months ago and I wasn’t impressed. The one in Rawtenstall is now a Tesco (originally there’d been an Asda on the site). All seems a bit confused.

 

[DavidGrain]

Sure Asda bought the Netto UK stores in 2011. That is Netto pulling out of the UK in my book. But Netto came back in a 50/50 joint venture with Sainsbury's in 2014 mainly in the north of England before pulling out again two years later after having opened 16 Netto stores.

 

[SuspectUsual]

That is Netto pulling out of the UK in my book

“Pulling out of the UK” to me implies failure and skulking away, tail between legs. Selling for nigh on 800 million doesn’t feel like that

 

[Dai Corner]

“Pulling out of the UK” to me implies failure and skulking away, tail between legs. Selling for nigh on 800 million doesn’t feel like that

It would if Netto spent more than £800m establishing the business?

 

[Typhoon]

Asda's future does look bleak though, they have no USP ...

Many of the 'George's aisles at my local Asda seem very popular at the start of the University year.

 

[Mcr Warrior]

The one in Rawtenstall is now a Tesco (originally there’d been an Asda on the site).

Is that the one across the road from the East Lancs Railway terminus?

 

[SuspectUsual]

Is that the one across the road from the East Lancs Railway terminus?

Yes. Horrid early 80s building

 

[johntea]

They opened a Jack's rather randomly in the old Toys R Us unit at Wakefield Westgate, which is only a few minutes walk from a large Sainsburys...then an even larger Sainsburys at Trinity Walk!

I don't think Aldi will be losing any sleep though over the whole 12 locations...

 

[Mcr Warrior]

What's the offering at "Jack's" outlets? Are regular Tesco products available there, or is it a supermarket-sized equivalent of "One Stop" convenience stores? (Owned by Tesco, but you wouldn't necessarily know it if shopping in-store).

 

[SuspectUsual]

What's the offering at "Jack's" outlets? Are regular Tesco products available there, or is it a supermarket-sized equivalent of "One Stop" convenience stores? (Owned by Tesco, but you wouldn't necessarily know it if shopping in-store).

From memory quite a bit of “Jack’s” branded stuff plus some branded lines. Don’t think there’s anything Tesco branded. They must share logistics with the main Tesco operation (whereas I believe One Stop don’t) because occasionally the Tesco my son works in get Jack’s branded stuff delivered by mistake which they generally give to the staff

 

[DB]

From memory quite a bit of “Jack’s” branded stuff plus some branded lines. Don’t think there’s anything Tesco branded. They must share logistics with the main Tesco operation (whereas I believe One Stop don’t) because occasionally the Tesco my son works in get Jack’s branded stuff delivered by mistake which they generally give to the staff

Was it just ordinary Tesco stuff with a different label?

 

[SuspectUsual]

Was it just ordinary Tesco stuff with a different label?

I don’t know, I’m not familiar enough with the Tesco range. But we have these at home (mispicked and wrongly delivered to Tesco) if that helps:

 

[si404]

Don’t think there’s anything Tesco branded.

Making explicit the link to TESCO would hinder the point of a separate Jack's brand - distance from the mothership.

 

[mmh]

Indeed. More specifically to them, to a degree they’ve become somewhere people can go and get advice and/or look at stuff, which they then go home and buy cheaper online.

They remain where people go if they want to buy something and have it there and then, or people who find home delivery awkward.

Also, the simple fact is that things like tellies last a lot longer than they used to, so they’re being replaced less often.

That's not my experience. As TVs have got proportionately cheaper (it's one of those things which for a bog standard one has been the same sort of absolute price for decades) their longevity has gone down the pan. Coupled with not being able to get them fixed any more, we've bought more in the last ten years than probably the thirty years before that.

And when they do break, it's convenient to go and pick up a replacement there and then. One of ours broke a few days before "lockdown," and we bought a new one on the Saturday before the Monday when all the shops had to close. That was fortunate timing!

 

[mmh]

Travelex has done a pre-pack deal that saves 1,800 jobs, but 1,300 jobs are lost. The High Street shops and airport branches that were closed during lockdown will not reopen.

I don't know about anyone else, but I generally just get cash out of an ATM at my arrival airport.

I'll usually take some local currency, bought from either Debenhams or Marks and Spencer. I've only once used a dedicated bureau de change shop, a Travelex at an airport, and then only due to lack of planning.

I think most people take some or all of their money with them, with cards for emergencies or overspend. I won't go with none after a couple of bad experiences, both in the US. Arriving at an airport where it took forever to find the sole ATM, and another time where my bank declined my card due to being abroad being suspicious activity. (I moved banks after that, I frequently travelled at the time and asked if there was a way to tell them to expect use abroad - "no, just phone us when you get there." Really unhelpful, so you need to be declined then phone an international number in the middle of the night. Bye!

 

[mmh]

My local Tesco has posters proclaiming"Same price as Aldi". Yes but inferior quality.

Tesco are heavily banging their "Aldi price match" drum, with stickers and signs all over the place. It's only a selected number of things of course, so they're still more expensive.

I think it could be a sign that their Jack's stores are not long for the world though.

 

[mmh]

I don't go to a supermarket for a butchers...
The rest of the food is of an inferior quality, just about better than Asda, but the prices are definitely more expensive than Tesco.
Plus the stores are disgusting, in dire need of refurbishment

The small Morrisons in Colwyn Bay isn't disgusting, and is an old store - a former Safeway. It is however more expensive than every other supermarket in the area (Tesco, Asda, Aldi, Lidl) and the only attraction of it is the meat section, which is better than all the others.

 

[_toommm_]

I'll usually take some local currency, bought from either Debenhams or Marks and Spencer. I've only once used a dedicated bureau de change shop, a Travelex at an airport, and then only due to lack of planning.

I think most people take some or all of their money with them, with cards for emergencies or overspend. I won't go with none after a couple of bad experiences, both in the US. Arriving at an airport where it took forever to find the sole ATM, and another time where my bank declined my card due to being abroad being suspicious activity. (I moved banks after that, I frequently travelled at the time and asked if there was a way to tell them to expect use abroad - "no, just phone us when you get there." Really unhelpful, so you need to be declined then phone an international number in the middle of the night. Bye!

Go to John Lewis, they have much better rates

 

[xotGD]

New Look are planning a company voluntary arrangement to get the rents on their stores reduced. Their second CVA in 2 years. In store sales down 38% compared to pre-lockdown.

Makes you think they might be on borrowed time.

 

[GatwickDepress]

Tesco 's launch of its own discount chain 'Jack's' hasn't exactly set the retail world ablaze. Has anyone here shopped in one?

I remember nobody on the staff intranet was particularly impressed when the company announced Jack's. From the name, people expected something more like Walmart's Sam's Club - a wholesale members club that competes with CostCo - rather than essentially being Lidl but with less choice than a regular Tesco Extra.

 

[61653 HTAFC]

The small Morrisons in Colwyn Bay isn't disgusting, and is an old store - a former Safeway. It is however more expensive than every other supermarket in the area (Tesco, Asda, Aldi, Lidl) and the only attraction of it is the meat section, which is better than all the others.

The big plus for Mozzers is the butchery section, which still has a counter so you can buy just what you need. Tesco's is all huge packs on a multibuy, and with less choice even at an Extra.

Morrison's bakery also wipes the floor with all the competition (apart from independents and maybe Waitrose). Although Lidl is a close second and does the best croissants.

As for stores that may be doomed, my former employer DSG Retail (Currys PC World) may well be on borrowed time. Their only saving grace might be that all their competitors have already gone, so to an extent they have a captive market for those who don't trust online shopping.

That said, if you're ordering something like a Micro SD card, you can often find the exact same item on their website with several different prices, and pick the cheapest one. This suggests that their inventory is a bit of a mess, which it never used to be when I worked there- though that was long before "click & collect" was a thing.

 

[matacaster]

The big plus for Mozzers is the butchery section, which still has a counter so you can buy just what you need. Tesco's is all huge packs on a multibuy, and with less choice even at an Extra.

Morrison's bakery also wipes the floor with all the competition (apart from independents and maybe Waitrose). Although Lidl is a close second and does the best croissants.

As for stores that may be doomed, my former employer DSG Retail (Currys PC World) may well be on borrowed time. Their only saving grace might be that all their competitors have already gone, so to an extent they have a captive market for those who don't trust online shopping.

That said, if you're ordering something like a Micro SD card, you can often find the exact same item on their website with several different prices, and pick the cheapest one. This suggests that their inventory is a bit of a mess, which it never used to be when I worked there- though that was long before "click & collect" was a thing.

DSG and B&Q have same sales model. A small number of branded / trusted items at a reasonable price. They make huge markups on the 'little' purchases that you tend not to factor in (just seeing headline price) such as
-extended warranty
-TV wall brackets
-printer inks
-sd cards etc

An example from B&Q a few years ago
I needed some longer screws for electric socket. B&Q circa £1.60 for 4 screws, expensive electrical place 10 pence each! Much of B&Q stuff is in my opinion cheap rubbish from China sold at top whack prices giving a truly extortionate mark-up. Poor Chinese manufacturer has been squeezed for price and thus takes revenge, using poor quality materials which, surprise, surprise mean you go and buy another one when first one fails. Take a power tool back within warranty and they'll likely give you a new one as they are so cheap for them to buy and they don't need to keep parts or staff to fix them. Tradepoint sells exactly same stuff as B&Q (as its part of same group), but is slightly cheaper.

 

[Swanny200]

DSG and B&Q have same sales model. A small number of branded / trusted items at a reasonable price. They make huge markups on the 'little' purchases that you tend not to factor in (just seeing headline price) such as
-extended warranty
-TV wall brackets
-printer inks
-sd cards etc

An example from B&Q a few years ago
I needed some longer screws for electric socket. B&Q circa £1.60 for 4 screws, expensive electrical place 10 pence each! Much of B&Q stuff is in my opinion cheap rubbish from China sold at top whack prices giving a truly extortionate mark-up. Poor Chinese manufacturer has been squeezed for price and thus takes revenge, using poor quality materials which, surprise, surprise mean you go and buy another one when first one fails. Take a power tool back within warranty and they'll likely give you a new one as they are so cheap for them to buy and they don't need to keep parts or staff to fix them. Tradepoint sells exactly same stuff as B&Q (as its part of same group), but is slightly cheaper.

DSG's model on literally trying to refuse you taking an item that you want out of their store without spending another £40 or £50 on an extended warranty even when you tell them that you have home insurance that will cover it anyway was what led me to leave and never darken their doors again, you can usually pick it up cheaper on amazon and in the rare instance that you need it same day Argos although at inflated prices too but with a shrug of the shoulders when the ask you about extended warranty.

Argos are another shop that I feel may be on borrowed time or at least on the verge of shutting outlets, I don't know how their outlets are doing in Sainsbury's but it only takes another national or large set of regional lockdowns to affect them.

Brighthouse have started reopening some stores to claw back their debts from existing customers but I'm surprised they have lasted so long.

I'm expecting to see some of the big car chains, the likes of Arnold Clark start slowing their business down too and maybe closing some of their single marque outlets and heading towards their Motorstore multi brand formula.

This new recession that we are getting will put the pressure on a lot of businesses that we never thought about coupled with the threat of a second wave, it will be very interesting and stressful to see.

 

[SuspectUsual]

Argos are another shop that I feel may be on borrowed time or at least on the verge of shutting outlets, I don't know how their outlets are doing in Sainsbury's but it only takes another national or large set of regional lockdowns to affect them

Argos are fine. The Sainsbury’s takeover has worked well, they’ve closed a load of shops and taken space hollowed out from an existing Sainsbury’s store, and the customers they’ve lost from closed town centre stores have been offset by customers gained from Sainsbury’s shoppers. The lease and operating cost savings are massive. It’s also a neat strategic fit of a non-food (relatively high margin) retailer with a predominantly food retailer.

 

[DB]

Argos are fine. The Sainsbury’s takeover has worked well, they’ve closed a load of shops and taken space hollowed out from an existing Sainsbury’s store, and the customers they’ve lost from closed town centre stores have been offset by customers gained from Sainsbury’s shoppers. The lease and operating cost savings are massive. It’s also a neat strategic fit of a non-food (relatively high margin) retailer with a predominantly food retailer.

They actually deliver a good service as well - I bought quite a bit from them when I moved house last year, and the deliveries were all when they said they would be, and the drivers were all very helpful.

 

[Swanny200]

Argos are fine. The Sainsbury’s takeover has worked well, they’ve closed a load of shops and taken space hollowed out from an existing Sainsbury’s store, and the customers they’ve lost from closed town centre stores have been offset by customers gained from Sainsbury’s shoppers. The lease and operating cost savings are massive. It’s also a neat strategic fit of a non-food (relatively high margin) retailer with a predominantly food retailer.

My local one is always dead, but that is not to say that the one in the Sainsbury's near the MetroCentre isn't always packed I'm never up there to see, I have never known Argos to close stores, but then we have said that about other big companies.

Another death knell in the Currys PC World coffin could very well be the likes of AO.com who I have found have been brilliant for anything electrical that I have had delivered in the last 2 years.

 

[61653 HTAFC]

DSG's model on literally trying to refuse you taking an item that you want out of their store without spending another £40 or £50 on an extended warranty even when you tell them that you have home insurance that will cover it anyway was what led me to leave and never darken their doors again, you can usually pick it up cheaper on amazon and in the rare instance that you need it same day Argos although at inflated prices too but with a shrug of the shoulders when the ask you about extended warranty.

Argos are another shop that I feel may be on borrowed time or at least on the verge of shutting outlets, I don't know how their outlets are doing in Sainsbury's but it only takes another national or large set of regional lockdowns to affect them.

Brighthouse have started reopening some stores to claw back their debts from existing customers but I'm surprised they have lasted so long.

I'm expecting to see some of the big car chains, the likes of Arnold Clark start slowing their business down too and maybe closing some of their single marque outlets and heading towards their Motorstore multi brand formula.

This new recession that we are getting will put the pressure on a lot of businesses that we never thought about coupled with the threat of a second wave, it will be very interesting and stressful to see.

The "push covercare at every opportunity" at DSG was always a bugbear with me when I worked there. The commission bonuses for such products were quite substantial but it always left a bitter taste in the mouth as did encouraging customers to put things on finance. Certain members of the sales team at the various branches I worked at observed the regulations about such things (Payment Protection Insurance for example) only as much as they were legally obliged to. I was glad that as a predominantly warehouse employee I didn't have to worry about my ratios on such things (I worked in a small branch for a large part of my time with them, so as a warehouse operative although I occasionally had to help out on sales, my base rate without commission was slightly higher). PPI isn't a thing any longer, so presumably the situation for employees isn't quite as it was back then.

 

[Swanny200]

The "push covercare at every opportunity" at DSG was always a bugbear with me when I worked there. The commission bonuses for such products were quite substantial but it always left a bitter taste in the mouth as did encouraging customers to put things on finance. Certain members of the sales team at the various branches I worked at observed the regulations about such things (Payment Protection Insurance for example) only as much as they were legally obliged to. I was glad that as a predominantly warehouse employee I didn't have to worry about my ratios on such things (I worked in a small branch so occasionally had to help out on sales, but my base rate without commission was slightly higher). PPI isn't a thing any longer, so presumably the situation for employees isn't quite as it was back then.

Reason I mentioned Arnold Clark was because I worked there, they used to be the same, Clark Cover, Special cleaning stuff on your car, GAP insurance, all incentives to build up on our commission which at times was paltry but the base rate was OK, not that my manager wanted me earning anywhere near that, he wanted 20 sales the first month, then 40, then 60 and if you got below it he was threatening you with the sack, not great when you are competing with him and his other 2 managers who would come along and swipe your customer away and 15 other salesmen all trying to get the same as you.

I get why they do it, but it was not for me, stress nearly did me in after 3 months.

 

[61653 HTAFC]

Reason I mentioned Arnold Clark was because I worked there, they used to be the same, Clark Cover, Special cleaning stuff on your car, GAP insurance, all incentives to build up on our commission which at times was paltry but the base rate was OK, not that my manager wanted me earning anywhere near that, he wanted 20 sales the first month, then 40, then 60 and if you got below it he was threatening you with the sack, not great when you are competing with him and his other 2 managers who would come along and swipe your customer away and 15 other salesmen all trying to get the same as you.

I get why they do it, but it was not for me, stress nearly did me in after 3 months.

Much of my time working at DSG was as a student, so I was grateful for the occasional bit of commission. One weekend, one of my housemates came in and bought a laptop on finance through a colleague who was known for bending the rules. Despite being a student she'd somehow qualified for finance and PPI which meant a big bonus for the colleague in question. I was initially annoyed that she hadn't gone through me but when looking over the paperwork I could see that it wasn't legit. I wouldn't have even tried to complete the sale in that way, as there was some obvious fraud involved. About six months later the whole PPI compensation thing became a big issue, and the colleague involved was found to have "played the system" pretty much out of habit and was dismissed.