Maplin.

[Chippy_Tea]

Sounds like it's going under I guess the internet drove the final nail into its coffin.

 

[Gunge]

That's a shame. I remember them from many years ago when their head office was a couple of miles from here. It was also an operating outlet, more akin to a trade counter than a retail store, staffed by a few people who knew what they were talking about and didn't glaze over at the mention of microfarads and induction coils etc. The few times I've been to their retail-park store in recent years, I have never seen more customers than staff on the shopfloor and often wondered how they made a profit. Evidently, they didn't.

 

[Chippy_Tea]

We bought my lad a drone there last Christmas as it was the only store in Barrow that had this particular model in stock (the big stores had sold out), i wouldn't have given Maplin a thought but a google search said they had them in, when they were in the high street in Barrow i remember looking at the radio control cars with eyes like saucers.

 

[chesters-mild]

I've bought lots from Maplin over the years, do hope they stay afloat, nowhare else carries the stock/stuff they have.

 

[Chippy_Tea]

I've bought lots from Maplin over the years, do hope they stay afloat, nowhare else carries the stock/stuff they have.

They are in talks so there might be a chance.


BBC NEWS -

Toys R Us in the UK and electronics chain Maplin are on the brink of collapse, putting 5,500 jobs at risk.

The struggling retailers - two of the UK's best known chains - are understood to have put administrators on standby after failing to secure a rescue deal.

Maplin - owned by Rutland Partners - had put the business up for sale, but talks with a potential buyer are understood to have broken down.

Toys R Us was also seeking a possible sale but has failed to secure a buyer.

Maplin has 200 stores and 2,500 staff in the UK, while Toys R Us employs about 3,000 workers in its 106 stores.

Maplin in talks with potential buyers

The toy chain in the UK - whose US owner filed for bankruptcy protection last September - is facing an imminent deadline for a £15m VAT bill which it will not be able to pay without selling the business.

It had managed to stave off collapse in December by agreeing a rescue plan to allow it to restructure its operations, including the closure of at least 26 stores planned for this Spring.

But with poor sales continuing into the new year and the VAT bill looming, the only route left for the firm to continue trading was to find a buyer which is now understood to be unlikely.

Meanwhile, Maplin had been in talks with Edinburgh Woollen Mill, the clothing company that owns Peacocks, Country Casuals and several other retailers, over a possible sale, according to Sky News.

The move came after insurers cut credit cover last year because of Maplin's falling profits.

The breakdown of the sale talks means that administration is now the most likely outcome for the firm.

High Street problems

Toys R Us and Maplin are the latest of a string of well-known retailers to run into financial problems in recent months.

Clothing chain New Look and department store chain House of Fraser are seeking financial support from landlords and other creditors.

Meanwhile, bed retailer Warren Evans, Asian-inspired High Street fashion brand East and High Street furniture chains Feather & Black and Multiyork have all recently fallen into administration.

Toys R Us in the UK has blamed its problems on its "warehouse-style stores".

It opened these in the 1980s and 1990s, but it said in December that they had become "too big and expensive to run in the current retail environment".

The UK business is understood to have made a loss for seven out of the past eight years of trading.

Retail analyst Kate Hardcastle, from Insight With Passion, said both Toys R Us and Maplin had cut staffing to try to cut costs, which had led to poor service in the shops.

She said for Toys R Us, the problem was particularly acute because it sold mainly branded goods.

"Therefore to succeed you need to offer some kind of differentiating factor - either a good discount or an experience that makes visiting the stores worthwhile.

"Toys R Us didn't move with the times. It didn't do discounts or retail theatre," she said.

 

[aamcle]

Too expensive + often didn't have the bits I wanted I only went there if I had to. I was never able to decide how they stayed open, no visible customers in an expensive shop ......... failure


aamcle

 

[IainM]

Sounds like it's going under I guess the internet drove the final nail into its coffin.

Maplin has a significant online presence. Their CEO this morning attributed the failure to other factors:

The business has worked hard over recent months to mitigate a combination of impacts from sterling devaluation post Brexit, a weak consumer environment and the withdrawal of credit insurance. This necessitated an intensive search for new capital that in current market conditions has proved impossible to raise. These macro factors have been the principal challenge not the Maplin brand or its market differentiation.

The sterling devaluation was directly because of Brexit. The weak consumer environment is a consequence of inflation rising faster than wages, because of sterling devaluation, because of Brexit. The withdrawal of credit is because investors are spooked by the uncertainty caused by Brexit. Of course, many other companies are doing ok and other factors come into play, but there is little escaping from the fact that it was the Brexit vote that pushed them over the edge. At a time when the rest of Europe and indeed the rest of the world is booming, this really shouldn't be happening, and indeed wouldn't be happening if it wasn't for the national act of self-harm.

 

[Chippy_Tea]

Maplin has a significant online presence. Their CEO this morning attributed the failure to other factors:

It may have had a significant online presence but how many of us when thinking of buying rechargeable batteries (as i did recently) thought of searching Maplin website before Argos, Tesco, ASDA or Ebay, i cannot think of a single time other than when i bought the drone i mentioned earlier that i have given their store a thought.

 

[IainM]

It may have had a significant online presence but how many of us when thinking of buying rechargeable batteries (as i did recently) thought of searching Maplin website before Argos, Tesco, ASDA or Ebay, i cannot think of a single time other than when i bought the drone i mentioned earlier that i have given their store a thought..

True, Maplin has been hit particularly hard, precisely because of the sorts of things they sell. Either cheap electronic components that they have to mark up beyond what people reasonably expect to pay in order to make the shopfloor space worthwhile, or big ticket electronic items that people are more likely to price-hunt around online for. Still, they would have survived longer, perhaps long enough to adapt their business model, if their margins hadn't been destroyed by the consequences of the EU vote.

 

[Chippy_Tea]

Still, they would have survived longer, perhaps long enough to adapt their business model, if their margins hadn't been destroyed by the consequences of the EU vote.

I think blaming Brexit is a cop out, they have been going donkeys years and have always been a niche market as has been said their stores were never busy and were expensive they have had years to adapt their business model but they did not do enough when they had chance and will now pay the ultimate price.

 

[Dutto]

Sounds like it's going under I guess the internet drove the final nail into its coffin.

Of course it is so let's blame t'Internet for all the current UK business failures.

None of them are to be blamed on Brexit, the government's handling of the economy or the fact that UK unemployment rates are rising at the fastest rate for 5 years; it's just that damned Internet!

Here's a quote about Toys R' Us from Sky today ...

"The administration of Toys R Us UK will leave the Pension Protection Fund (PPF) facing a bill of about £37m as it absorbs the pensions liabilities of Britain's biggest toy retailer, insiders said."

Only £37 million? I doubt if their Finance Director will be able to find another job!

Please Lord, let the Administrators find out that the Maplin Employees Pension Fund hasn't been robbed to prop up the company. :thumb:


Ref:

https://www.theguardian.com/business/job-losses

https://news.sky.com/story/5700-jobs-at-risk-as-toys-r-us-and-maplin-face-collapse-11270031

 

[Chippy_Tea]

Of course it is so let's blame t'Internet for all the current UK business failures.

No one is blaming every business going under on the internet but if you are competing with much bigger stores and don't get the home shopping side of things right it isn't going to end well.
.

 

[IainM]

I don't deny that the business had other issues, but its hardly a cop-out to point out that people have less cash to spend on electronics and the cost of those items is going up because of the devaluation of the pound. Brexit wasn't the only reason they went bust, but its a significant part of it.

 

[-Bezza-]

When I look at Toys R Us and Maplins, there are two things that appear to be consistent:

1) They're selling products that are readily available elsewhere, especially online
2) They're not competing on price with the online sellers

15 years ago, the likes of Maplins (or Tandy) would have some form of exclusivity over electrical components, leads, plugs etc. They essentially acted as the interface between the Asian producers and the UK customers, where customers couldn't get in touch with Taiwan directly. The internet, through Amazon and eBay, now mean the customers are able to deal with Asian suppliers directly without the need to cover the overheads of the middle man - expensive store locations, wages etc. You then have the convenience of having things delivered to your door rather than traipsing into a town centre only to find they don't have the widget you want in stock. Coupled with this, it's probably safer to buy Maplins-stocked products online - I'm more comfortable buying a 1.21Gw-rated flux capacitor online, where I can triple-check the description and read reviews, as I'm likely to pick up the wrong thing in store.

So for me, it seemed that the market was always going to drop away for Maplins. Add the PE house ownership too, where they would have invested for growth and borrowed to fund Maplin's managements' ambitions, and you've added a whole other layer of cost on top.

I don't think Maplins' identity crisis helped either (which I think is what Chippy Tea was alluding to). Other than a place to go and get some weird electrical components and short notice, did anyone actually understand what they could buy in Maplins?

Take Curry's as an alternative example - I think they should be ok survive as there's a benefit in going to look at and poke the TV/Walkman/Teasmaid that you want to buy, which online can't wholly replicate. They've also maintained the buying power, exclusivity deals etc to be able to compete with online suppliers - their stores are well designed, have reasonably knowledgeable staff etc.

 

[Chippy_Tea]

Take Curry's as an alternative example - I think they should be ok survive

I agree although my first port of call when buying most things is Argos they usually have several items to compare at differing prices and having stock checked at your local store you can reserve your item for pick up immediately which is great if like me you are the impatient type.

 

[Norfolk79]

I agree although my first port of call when buying most things is Argos they usually have several items to compare at differing prices and having stock checked at your local store you can reserve your item for pick up immediately which is great if like me you are the impatient type.

This is really Argos' key selling point. The fact you can see if they have stock before you leave and get it the same day. Their range is pretty extensive and prices are pretty keen too.

 

[-Bezza-]

I agree although my first port of call when buying most things is Argos they usually have several items to compare at differing prices and having stock checked at your local store you can reserve your item for pick up immediately which is great if like me you are the impatient type.

If you'd asked me 3 years ago, I would have said Argos would go down the pan. Expensive high-street shops, overpriced products, not up-to-date tech products. But since they've stuck them in Sainsbury's stores all around the country and sorted their prices, they're back onto a good thing. They're now a short-notice, click-and-collect Amazon for me. :thumb1:

 

[MyQul]

The Maplin's near work in Kingston have just moved across the shopping area to a more prestigious location and into a brand spanking new location. You'd think they might have know this was a possibility and not moved?

 

[aamcle]

Don't blame Brexit, that's just looking for excuses.​

Maplins have been in trouble for years, overpriced products and a limited range of stock is what killed them.

I used to go into the store when I had to or didn't want to wait but they frequently didn't have what I wanted and I was often the only customer or one of the only two customers in the shop.

I was never sure what they were supposed to be a Toy Shop or a supplier of Components.


aamcle

 

[Chippy_Tea]

I was often the only customer or one of the only two customers in the shop.

That is a good point when i visited last Christmas there was me looking at the drones and another guy wandering around and two staff serving this was a couple of days before Christmas eve.