Companies That You Expect to Disappear Soon

[Dai Corner]

The Primark in my town always has a queue outside. I've never really rated Primark clothing - it's very cheap and tatty.

It's the type of place you go just to fill a holiday suitcase - cheap T-shirts, shorts, flip-flops. Then when stuff gets soiled or ripped, you simply bin it.

I wore a pair of Primark shorts once in Spain and I accidentally tore the pocket when I caught it on something. The fabric was just as easy to tear as if I was wearing shorts made of newspaper!

CJ

Many people treat their wardrobes and bedroom chests the same way as you treat your holiday suitcase. They're presumably Primark's target customers.

 

[birchesgreen]

Personally i find some Primark stuff decent quality and lasts (and cheap too of course), i bought some of their jumpers a couple of years ago and all are still fine, wearing one right now in fact.

 

[C J Snarzell]

One of my friends dresses his two youngsters in Primark clothing because they are both always playing out and coming back covered in all sorts of muck & grime.

His younger child is still at an age when his food always ends up decorating half his face and T-shirts. The theory is - why dress children in designer clobber when it is just going to get ruined or they out grow it in six months. Makes sense I suppose.

I've never understand the mentality of people who spend a small mortgate on getting their children a new season football kit every year from the merchandise shops you find at most Premiership football grounds.

CJ

 

[richw]

How vulnerable is the coffee business though?
Highly discretionary spend in a recession (surely at some point these folk who can’t exist without a coffee in their hand will stop and realise how much they are spending?!), and highly reliant on office workers and shoppers which is looking like a permanently repressed market. And there are soooo many coffee shops!

My partners ex husband was spending £300+ a month on costa coffee as a status thing as he couldn’t possibly walk into work without a costa coffee cup in his hand whilst not paying their Essential bills!
She used it as evidence of unreasonable behaviour which the divorce court accepted! (Along with a couple of other reasons)

He’s a minimum wage worker!

 

[xotGD]

I guess that Primark shoppers were queueing to get into the stores because all of the clothes they bought there before lockdown have already disintegrated.

I think we can place Primark in the 'not going to disappear' column. Along with Costa.

 

[route101]

Only thing i buy out of Primark is socks and the odd t shirt.

Rarely buy coffee or tea, call me strange but give me a water or juice anyday.

 

[tbtc]

I guess that Primark shoppers were queueing to get into the stores because all of the clothes they bought there before lockdown have already disintegrated.

Or because they were parents who's kids had outgrown their old clothes in the previous few months (of lockdown)?

British prejudice is fascinating - we seem to accept that there's a role for places like Greggs (and that not everyone can afford daily lunch at Pret) but sneer at the fact that some commoners can't afford "built to last" clothes (or try to keep up with fashions etc)

I've had some Primark clothes that are still in one piece a decade later - I'm not sure why they get the criticism that they do, given how most of the industry seems to be chasing the same "fast fashion" market of ranges that quickly turn over the rangers to stay current and are produced fairly cheaply (either in east Asia or in places like Leicester) - the only difference is that some places like M&S trade on "reputation" (even though it's a long time since they ditched their British suppliers and outsourced supplies from the same countries that Primark uses.

 

[route101]

Yes, it seems to be harder to get clothes to last. I bought a bag from Blacks last year and within weeks the zips had bust and a tear developed at the bottom.

 

[adrock1976]

Yes, it seems to be harder to get clothes to last. I bought a bag from Blacks last year and within weeks the zips had bust and a tear developed at the bottom.

Did you ever get a refund or a replacement free of charge, as this seems to be goods not fit for purpose under the Sale of Goods Act (unless any faults or defects were pointed out to you at the time of purchase)?

I would not expect zips to bust or tears to develop after a few weeks of purchase.

 

[FQTV]

Yes, it seems to be harder to get clothes to last. I bought a bag from Blacks last year and within weeks the zips had bust and a tear developed at the bottom.

Time-was that Blacks had a lifetime guarantee on their bags, but they were also made to specifications that protected them well against getting many claims.

 

[johntea]

I am very comfortable in my Primark T-Shirts, which I think cost £2 a piece!

 

[bearhugger]

The best coffee I've had in recent times has been from the cafe on Middlesbrough railway station. I hope they've survived.

Returning to topic, Jigsaw are closing 13 more stores with the loss of 100 jobs.

The cafe on Middlesbrough station is called The Stottie Company and yes it has re-opened. The WH Smith’s is still shut though.

 

[Tetchytyke]

British prejudice is fascinating - we seem to accept that there's a role for places like Greggs (and that not everyone can afford daily lunch at Pret) but sneer at the fact that some commoners can't afford "built to last" clothes (or try to keep up with fashions etc)

Terry Pratchett put it best:

At the time of Men at Arms, Samuel Vimes earned thirty-eight dollars a month as a Captain of the Watch, plus allowances. A really good pair of leather boots, the sort that would last years and years, cost fifty dollars. This was beyond his pocket and the most he could hope for was an affordable pair of boots costing ten dollars, which might with luck last a year or so before he would need to resort to makeshift cardboard insoles so as to prolong the moment of shelling out another ten dollars.

Therefore over a period of ten years, he might have paid out a hundred dollars on boots, twice as much as the man who could afford fifty dollars up front ten years before. And he would still have wet feet.

I don't find Primark to be particularly bad, some of the worst clothes I've had recently have been from M&S.

 

[pdq]

So, what are Primark doing right that so many others are not? Do they have any real, direct competitors at their price point and target?

I'm thinking back to my original summising that Primark's lack of an online shop - while totally against the current grain - is actually helping them as a high street business - borne out by the queues.

 

[FQTV]

So, what are Primark doing right that so many others are not? Do they have any real, direct competitors at their price point and target?

I'm thinking back to my original summising that Primark's lack of an online shop - while totally against the current grain - is actually helping them as a high street business - borne out by the queues.

They’ve already taken a quarter of a billion pound hit on writing-off unsold stock, so the odd queue since reopening doesn’t in itself mean anything; we’ll need to see the next set of results.

Primark is only one part of the larger ABF business, though, and those other parts will have been faring differently over the last six months, too, so ABF’s ability to prop Primark up in the short term may be enhanced.

 

[Dai Corner]

They’ve already taken a quarter of a billion pound hit on writing-off unsold stock, so the odd queue since reopening doesn’t in itself mean anything; we’ll need to see the next set of results.

Primark is only one part of the larger ABF business, though, and those other parts will have been faring differently over the last six months, too, so ABF’s ability to prop Primark up in the short term may be enhanced.

Despite the queues, sales are 12% down. Maybe people aren't spending much once they get into the shop?

Primark post-lockdown sales head for £2bn

Owner AB Foods says the High Street chain's sales since reopening have been stronger than expected.

www.bbc.com

The owner of High Street fashion chain Primark has said sales have been higher than expected since stores reopened after lockdown, but are still lower than last year.

Associated British Foods said sales since reopening would hit £2bn by the end of the year.

However, that would be 12% lower on a like-for-like basis than in 2019.

"If the four large UK destination city centre stores are excluded, the decline is 5%.," it added.

"After a period of store closure, we are encouraged by the strength of our sales," AB Foods said in its latest trading update.

"In the latest four-week UK market data for sales in all channels, Primark achieved our highest-ever value and volume shares for this time of year."

The firm said trading in its food divisions had also been better than predicted so far in the fourth quarter.

 

[ainsworth74]

The cafe on Middlesbrough station is called The Stottie Company and yes it has re-opened.

Oh that is good news! I've had more than a few of their bacon and sausage sandwiches for breakfast before a trip somewhere. Always excellent.

 

[bearhugger]

Oh that is good news! I've had more than a few of their bacon and sausage sandwiches for breakfast before a trip somewhere. Always excellent.

They've been open for a few weeks now, I had a sausage sarnie & coffee before a trip to Darlo, not too badly priced but the full breakfasts are a bit pricey for me.
I've not had a look through into the WH Smiths to see if there's any stock on the shelves but it looks like there's no rush for them to re-open even though it would be really easy for them to have a 1 way system in place for obliging guidelines.

 

[Darandio]

I guess that Primark shoppers were queueing to get into the stores because all of the clothes they bought there before lockdown have already disintegrated.

Incorrect. The kids are getting bigger and there aren't many places we can have a good rummage around and fill a huge basket for less than £100. I haven't seen anything disintegrate either.

The snootiness here is incredible.

 

[trebor79]

Incorrect. The kids are getting bigger and there aren't many places we can have a good rummage around and fill a huge basket for less than £100. I haven't seen anything disintegrate either.

The snootiness here is incredible.

Indeed. Lets face it, even posh shirts are made in the same Chinese and Bangladeshi sweatshops as Primark stuff these days. Gross profit on clothing is ridiculously high. Primark make less gross margin on each item, but the pile 'em high and sell 'em cheap model works. They also save huuuge amounts of money by NOT doing online sales and thus avoiding the cost of returns and employing an army of pickers and packers.

 

[Bobdogs]

Greggs is stodge , fills a hole. Kind of the safe option but its not quality.

Same as pizza. Where I come from we call it ket.

 

[Trackman]

Incorrect. The kids are getting bigger and there aren't many places we can have a good rummage around and fill a huge basket for less than £100. I haven't seen anything disintegrate either.

The snootiness here is incredible.

I bought some work socks from Primark in Bromley about 8 years ago. I’ll tell you what for the price best sock best purchase ever, I reckon they will last 20 years!

Back on subject a relative in the hotel biz has just been served notice by the Marriot group.
They knew it was coming and already have a job lined up.

 

[route101]

I bought some work socks from Primark in Bromley about 8 years ago. I’ll tell you what for the price best sock best purchase ever, I reckon they will last 20 years!

Back on subject a relative in the hotel biz has just been served notice by the Marriot group.
They knew it was coming and already have a job lined up.

The socks i buy at Primark dont last long at all . The heel wears through.

Speaking of SSP. Glasgow Central M&S has reopened.

 

[adrock1976]

The socks i buy at Primark dont last long at all . The heel wears through.

Speaking of SSP. Glasgow Central M&S has reopened.

Would you be so kind to mention what SSP at Glasgow Central is please?

The first thing that (rather unfortunately) that comes into mind when SSP and Glasgow are mentioned is that it is the Scottish Socialist Party that was fronted by the suntanned and loudmouth Tommy Sheridan. According to a recent report in the local rag, Sheridan is attempting another comeback for the Scottish Parliament elections next year, attempting to tap into independence supporters and SNP MSPs who have become disillusioned with the SNP.

Needless to say, this will alienate lots of people who would otherwise be supportive of such a cause, as I know several who refuse to work alongside Sheridan due to his behaviour between 2004-06 regarding visiting swingers clubs in Manchester.

 

[trebor79]

Would you be so kind to mention what SSP at Glasgow Central is please?

SSP is the company which owns Upper Crust and other such rip-off catering outlets.

The first thing that (rather unfortunately) that comes into mind when SSP and Glasgow are mentioned is that it is the Scottish Socialist Party that was fronted by the suntanned and loudmouth Tommy Sheridan. According to a recent report in the local rag, Sheridan is attempting another comeback for the Scottish Parliament elections next year, attempting to tap into independence supporters and SNP MSPs who have become disillusioned with the SNP.

Needless to say, this will alienate lots of people who would otherwise be supportive of such a cause, as I know several who refuse to work alongside Sheridan due to his behaviour between 2004-06 regarding visiting swingers clubs in Manchester.

I've never understood why some someone's sexual proclivities makes them unsuitable for office.
Mind, the guy at our place who got his photo plastered on the front page of The News of the World, at a late night dog show, wearing his corporate shirt with embroidered logo visible probably was pushing his luck.

 

[route101]

Would you be so kind to mention what SSP at Glasgow Central is please?

The first thing that (rather unfortunately) that comes into mind when SSP and Glasgow are mentioned is that it is the Scottish Socialist Party that was fronted by the suntanned and loudmouth Tommy Sheridan. According to a recent report in the local rag, Sheridan is attempting another comeback for the Scottish Parliament elections next year, attempting to tap into independence supporters and SNP MSPs who have become disillusioned with the SNP.

Needless to say, this will alienate lots of people who would otherwise be supportive of such a cause, as I know several who refuse to work alongside Sheridan due to his behaviour between 2004-06 regarding visiting swingers clubs in Manchester.

SSP = Select Service Partner, sure its been mentioned on this thread.

 

[Tetchytyke]

They’ve already taken a quarter of a billion pound hit on writing-off unsold stock

Ah, but is that because the unsold stock had to be binned, or is it good for the tax bill to have a nice big fat write-off when nobody is looking?

I know several who refuse to work alongside Sheridan due to his behaviour between 2004-06 regarding visiting swingers clubs in Manchester.

They're against wife-swapping but don't mind perjury? What an odd moral code!

 

[SteveM70]

Ah, but is that because the unsold stock had to be binned, or is it good for the tax bill to have a nice big fat write-off when nobody is looking?

spring/summer seasonal stock they never got the chance to sell. So that’s a yes to both questions, I suspect

 

[Trackman]

The socks i buy at Primark dont last long at all . The heel wears through.

Speaking of SSP. Glasgow Central M&S has reopened.

Thick work socks

 

[FQTV]

Ah, but is that because the unsold stock had to be binned, or is it good for the tax bill to have a nice big fat write-off when nobody is looking?

Not really; the value of the stock must be declared to a reasonable level of accuracy in the accounts, which is a legal requirement.

Now, it’s true that, at that year end, it’ll mean that the tax liability is reduced, but obviously tax is only a percentage calculation. It’s not the case that a write-down reduces the amount of tax due by the amount of the write-down.

There’s a further distinction, though, and that relates to the nature of stock itself and what subsequently happens to it. So, the stock could have been stolen, is irrecoverable and no further gain can be made from it. Or, it could have been damaged by (say) flood or fire and similarly be irrecoverable. A lot of large businesses effectively self-insure parts of their operations, so there’s no route to claims and write-down is the only option.

The stock could also be perishable, and is similarly irrecoverable.

However, in the Primark case, that doesn’t hold, and so the stock stays on the books albeit at nil value. The key thing is that if the stock is then sold, the calculation swings back the other way, as the gross profit is calculated on the basis of there being effectively nil cost of sale.

Unless Primark actually throws the stuff away because it’s not an Autumn colour, then all that really happens is that they’re deferring a tax liability, which makes a lot of sense when cashflow has collapsed.

This is very OT, but a lot of folks do get confused about how business accounting works, and even a lot of (particularly smaller) business people do too. Witness the current 100% first year depreciation capital allowance for certain electric company cars. Whilst it’s true that the allowance could mean a big saving in the company’s corporation tax liability in the first year, what’s not so widely understood is that, when the car is disposed of, its nil net book value and likely still high sale price will register as a big profit and attract a significant liability.

Back to Primark, though, as we know, they’re not the type of retailer that’s actively avoiding onshore tax liabilities through virtual structures and the like, so personally, my ire in this regard is directed elsewhere.