Tech & Biz

Woolworths fighting to survive

by mchawk | October 10, 2008 at 03:34 pm | 123 views | 9 comments | 16 recommendations

The global financial crisis is taking hold on the High Streets of Britain. Amid rumours of takeovers, redundancies and collapse, one High Street stalwart is cutting its losses before things get any worse.

Woolworths has announced it is selling up to nine of its stores to Tesco.

The disposals will occur on a lease by lease basis over the next six months, generating the group a profit of about £7 million. The retailer has not revealed the locations of the stores.

The deal is evidence of investors being able to pick up bargain stakes in UK companies, following weeks of turmoil in the stock markets which has seen billions of pounds wiped off the value of listed companies.

Shares in Woolworths have fallen more than 80% over the last year. They closed up 5% yesterday at 3.14p, having fallen sharply on reports that credit insurers were refusing to provide cover for suppliers.

Not so much five-and-dime as tuppence-ha'penny.

recommend Add a comment

Rachel Nixon

at 17:02 on October 10th, 2008

It would be a shame if Woolworths went under - it's an old favourite on the British High Street.

mchawk

at 01:36 on October 11th, 2008

I agree, but they've tried to diversify over the last few years and lost money because of it. They need some sort of shake-up.

banksy-art

flagged this story as Good Stuff

at 20:59 on October 10th, 2008

mchawk, I like this story. It's good stuff.

mchawk

at 01:37 on October 11th, 2008

thanks for the flag, banksy-art

gerrypopplestone

flagged this story as Good Stuff

at 05:45 on October 11th, 2008

mchawk, I like this story, but please say it's not true! Woollies and me goes back a long long time, to the Second World War! Not that I spend much time in it now since it appears so badly managed these days (although their £5 toaster is excellent value, as is their DVD player!). They've had loads of shakes-up but to no avail! They need Root and Branch Surgery! Some Deep Cuts Where It Will Hurt!! Good old Tescos will get them on the right track again Im sure. Tesco's logistics skills is Second To None!

PS: They need to decide what is their USP! and if they have one.

mchawk

at 12:24 on October 11th, 2008

I know what you mean, Gerry - they're such an integral part of the High Street, I can't imagine it without them.

I agree with you about their lack of USP. Over the years, they must have lost a fortune by trying to diversify. They've spread their brand too thin. Hopefully, this shake-up will do the trick and they come back leaner and stronger.

Thanks for the GS

master_jim2008

flagged this story as Good Stuff

at 05:51 on October 11th, 2008

mchawk, I like this story. It's good stuff.

WOW, I didn't know that chain even still existed. I grew up with that chain being everywhere in California, then they all vanished one by one.

mchawk

at 12:27 on October 11th, 2008

This Woolworth used to be part of the American five-and-dime chain, but they split in '82. I fear that the British version might go the same way as it's American parent.

Thanks for the flag, Jim.