Tesco next down the pan?

I would have thought that they'd be delighted with the rental that they earned from Costa.

Mind you, the Sainsbury superstore in London Colney got rid of their Starbucks.... although it might have been Starbucks themselves who decided to kick it into touch.
Costa pay a rent that's based on a percentage of turnover, and I think that the initial idea was that as the proposed replacement was a Tesco owned brand that they'd get the best of both, profit and rent. However, it was to be an eatery that only offers a carvery, and who the fuck says, 'Haven't seen you in ages, how about we go to Tesco for a carvery and a catch-up at 9:30 after the school run?'
 
Costa pay a rent that's based on a percentage of turnover, and I think that the initial idea was that as the proposed replacement was a Tesco owned brand that they'd get the best of both, profit and rent. However, it was to be an eatery that only offers a carvery, and who the **** says, 'Haven't seen you in ages, how about we go to Tesco for a carvery and a catch-up at 9:30 after the school run?'
Even if it was just a simple coffee shop, I wonder if they still might not do better renting out to a specialist and well known brand. Would footfall and turnover not be greater (and without the overheads)? I think I would be more likely to go into a Costa or similar after a shop than a rough and ready Tesco in-house facsimile. But I'm not really someone who uses coffee shops of any stripe very much. I guess they will have done their sums.

And who would want a carvery meal in a Tesco? All the ambience and atmosphere of a works canteen and with food quality to match, I imagine. What a treat.
 
Even if it was just a simple coffee shop, I wonder if they still might not do better renting out to a specialist and well known brand. Would footfall and turnover not be greater (and without the overheads)? I think I would be more likely to go into a Costa or similar after a shop than a rough and ready Tesco in-house facsimile. But I'm not really someone who uses coffee shops of any stripe very much. I guess they will have done their sums.

And who would want a carvery meal in a Tesco? All the ambience and atmosphere of a works canteen and with food quality to match, I imagine. What a treat.
The smaller Tesco in a neighbouring town used to have its own 'greasy spoon' style canteen/cafe and when it closed the cafe their weekly takings dropped by £28k a week, and I know that as fact as I'm friends with the person who used to be their night manager; not scientific but hard to not link it with the drop in footfall from cafe customers who then do a small basket shop as there was no other supermarket in that town, although there is now a Lidl.
 
Even if it was just a simple coffee shop, I wonder if they still might not do better renting out to a specialist and well known brand.
Tesco, really rather good at buying businesses that ‘seemed like a good idea at the time even though they do nothing for he core business' dabbled with its own coffee shop brand starting back in 2012.

Tesco joint ventured the then fledgling 'Harris & Hoole' coffee business with a 49% share in 2012. Part of the deal was the right to buy the other 51% of the business after three years which Tesco duly did In 2015*, despite the fact that it was losing money even faster than a domestic airline loses money.

With a £12.8m loss in 2014 and then a £25.6m loss in the year to 1st March 2015 (despite only 43 branches and 29 of them rent free inside larger Tesco stores) the business was sold to Caffé Nero for an undisclosed sum in early 2016.

*Buying the entire business and quickly flogging it off as a going concern was easier than trying to divest itself of a minority share of the business.

(They also sold Dobbies Garden Centres and Giraffe Restaurants at about the same time if I remember correctly)
 
Looks like Beales next
Beales into administration today. Hardly surprising as their 23 stores:
  • Are too widely dispersed around the country
  • Are really old fashioned, scruffy and incoherently set out
  • Convey no sense of quality.
Hopefully, a solution will be found to preserve the jobs but I don’t really see a way forward for the current format.

Department store Beales falls into administration
 

Grownup_Rafbrat

LE
Book Reviewer
Beales into administration today. Hardly surprising as their 23 stores:
  • Are too widely dispersed around the country
  • Are really old fashioned, scruffy and incoherently set out
  • Convey no sense of quality.
Hopefully, a solution will be found to preserve the jobs but I don’t really see a way forward for the current format.

Department store Beales falls into administration
But it's ok. It's all the fault of Business Rates and online shopping, not dirty stores with too many in store concessions selling cheap crap at inflated prices, staff who don't care and can't be bothered to help, and a general atmosphere that is best avoided.
 
But it's ok. It's all the fault of Business Rates and online shopping, not dirty stores with too many in store concessions selling cheap crap at inflated prices, staff who don't care and can't be bothered to help, and a general atmosphere that is best avoided.
Sounds mighty like House of Fraser in Camberley

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I have never actually heard of this company but...

Hawkins Bazaar, a Norwich based gifts and toys emporium with 19 shops collapses into administration for a second time. 180 jobs at risk

Gift company Hawkin's Bazaar in administration

1579890779459.jpeg


Yet another small company spread very thinly over most of the country, 19 shops from Exeter to Dundee, Bristol to Norwich - a logistics nightmare for what I imagine to be low volume sales across a high volume of SKUs.
 

Yokel

LE
SKUs?

I am sure I have been in their store in Exeter. Is this the sort of thing that could be run by locally staffed independent shops?

The only way to survive is for local stores to add value in terms of staff expertise and product knowledge, customer service, and after sales support. All these things were mentioned on the Maplin thread.

There there is the problem of critical mass.
 

TamH70

MIA
SKUs?

I am sure I have been in their store in Exeter. Is this the sort of thing that could be run by locally staffed independent shops?

The only way to survive is for local stores to add value in terms of staff expertise and product knowledge, customer service, and after sales support. All these things were mentioned on the Maplin thread.

There there is the problem of critical mass.
I wasn't sure, I thought it was something along the lines of stock-keeping unit, so I googled it, and it was:

 
SKUs?

I am sure I have been in their store in Exeter. Is this the sort of thing that could be run by locally staffed independent shops?

The only way to survive is for local stores to add value in terms of staff expertise and product knowledge, customer service, and after sales support. All these things were mentioned on the Maplin thread.

There there is the problem of critical mass.
SKU=stock keeping unit. A line of stock. Say you're selling plastic model kits and the accessories. Every shade of Humbrol paint will have a different SKU (on the barcode). Common shades might come in larger sizes. There's probably a starter pack of half a dozen shades. Brushes, glue, solvent. Then the models themselves. Each store might only sell a dozen of the less common items a year. Or even less. Managing this must be a nightmare. You can't make economies of scale because the factory/distributor isn't interested in "Well we'll make a massive order of 144 tins of satin black" when each tin is a couple fl oz. It doesn't amount to shit, in the scheme of things. Even if the stores sold thousands of tins of paint, it still doesn't amount to shit.

Unless of course you're selling model railways or RC gear, which can be quite expensive. But you still have to shift a large volume to make any money.
 
I have never actually heard of this company but...

Hawkins Bazaar, a Norwich based gifts and toys emporium with 19 shops collapses into administration for a second time. 180 jobs at risk

Gift company Hawkin's Bazaar in administration

View attachment 445605

Yet another small company spread very thinly over most of the country, 19 shops from Exeter to Dundee, Bristol to Norwich - a logistics nightmare for what I imagine to be low volume sales across a high volume of SKUs.
Can't pretend to be surprised, they seemed to stock the contents of Christmas crackers, perhaps ok as an online company but surely not with the overheads of stores.
 
Can't pretend to be surprised, they seemed to stock the contents of Christmas crackers, perhaps ok as an online company but surely not with the overheads of stores.
Their unit in Bluewater seems to be staffed by teenagers who know nothing about the items they are selling.
 
I was in a Tesco cafe and they said there's no hash browns left for the breakfasts , I just looked at them and in the direction of the frozen food aisle but they never twigged that they were inside a BFO supermarket.
 
SKU=stock keeping unit. A line of stock. Say you're selling plastic model kits and the accessories. Every shade of Humbrol paint will have a different SKU (on the barcode). Common shades might come in larger sizes. There's probably a starter pack of half a dozen shades. Brushes, glue, solvent. Then the models themselves. Each store might only sell a dozen of the less common items a year. Or even less. Managing this must be a nightmare. You can't make economies of scale because the factory/distributor isn't interested in "Well we'll make a massive order of 144 tins of satin black" when each tin is a couple fl oz. It doesn't amount to shit, in the scheme of things. Even if the stores sold thousands of tins of paint, it still doesn't amount to shit.

Unless of course you're selling model railways or RC gear, which can be quite expensive. But you still have to shift a large volume to make any money.
Holy sh*t I was just looking at a railway models / model railways shop in Germany last week - it seemed to be strictly for the wealthy. Made me wonder really how that industry survives.
 
Holy sh*t I was just looking at a railway models / model railways shop in Germany last week - it seemed to be strictly for the wealthy. Made me wonder really how that industry survives.
Indeed; I have a German Brawa locomotive. It was $400 about 4 years ago. Beautiful model, and performs brilliantly, but costs a lot. As you imply, it’s an expensive hobby.
 
I was in a Tesco cafe and they said there's no hash browns left for the breakfasts , I just looked at them and in the direction of the frozen food aisle but they never twigged that they were inside a BFO supermarket.
Not allowed to, that involves doing a 'pay out' and has to be signed off by a senior manager who is usually 'doing something far too important and far too busy'. The funny thing is they all have the same passwords and when you've been at Tesco for a short while it becomes obvious why. Funny when you know the managers 4 digit log id code you can do all kinds of things from a staff terminal. One requested a special delivery of £160 worth of tiger prawns and swore he had no memory of doing it, the staff were grateful for the nice 50% off tiger prawns at the next day.

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