Businesses going bust

[First Class]

RE: Businesses going bust

(28/06/2013 11:39)DVL418 Wrote:  

(28/06/2013 07:00)wirralbus Wrote:  There is two times of the year most businesses will go under usually in retail , that is end of January and end of June , usually because most rental properties have rent review and renewals at around this time.

This is when there financial model is found to be either a success or a failure.

The retail enviroment will when it comes out the other side be a lot leaner and carrying a lot less fat than it did maybe 5 years ago when the hard times started .

One big change has been the online shopping activity where you can buy from the comfort of your aermchair .

Most commercial leases have rent due on quarter days, with upward ONLY rent reviews bi-annually, although there are a few with annual upward reviews still around.

on- line shopping is great If you have access to the Internet and a credit card that is. Many low income families do not, but they are not most retailers target market, so they have to make do with Poundland, Iceland and tumbleweed infested decaying town centres - seen old Runcorn recently?

Poor families or not - the majority still have internet access and an electronic means of payment. A debit card, or PayPal/Direct Debit linked bank account is generally sufficient.

The government are planning to close job centres in the not too distant future with benefit claimants managing their claim online. "Universal Jobmatch" and "Universal Credit" are examples of how this is being developed.

Even assuming some people don't have a ASDL/Fibre connection, the vast majority of people will have a 3G/4G (mobile) one.

The one demographic, elderly people, are the only category I expect currently struggles with e-commerce. That said, as time goes by, that problem will resolve itself as they will (eventually) be replaced by web savvy pensioners, currently in their 40s and 50s.