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spygirl

Wilko wankered

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Never looked at Wilkos before. Tat shop.

https://www.ft.com/content/be54284c-7ea2-11e7-9108-edda0bcbc928

1.5b turnover.

Last year profit 25m

This years 5m.

Fuck. Thats not a company, thats a disaster.

Bit like Sports direct. Snapped up loads if brands when the pound was strong. Pound falls, profits evaporate.

These low end retailers are costing a fortune. Each FT position will have 3-4 tax creditirs doing 16h and pulling 1.3k/m in tax credits.

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Wilkos is very much not a tat shop selling the latest cheapies like Factory Shop or Poundland.

It sells a relatively static range of well-priced non-food home goods, gardening and cleaning products.  I regularly go there for homebrew supplies.

Maybe they've suffered slightly from B&M who sell a wider range and are generally cheaper.

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The problem with wilko is that there is no focus - I've no idea if there going to be selling what I'm looking for. Range is I guess the same idea bit on a much bigger scale, they sell such an enormous range (sic) that theres at least some probability they will have what your after.

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12 minutes ago, goldbug9999 said:

The problem with wilko is that there is no focus - I've no idea if there going to be selling what I'm looking for. Range is I guess the same idea bit on a much bigger scale, they sell such an enormous range (sic) that theres at least some probability they will have what your after.

Ahh, the Range. Full of largely, unecessary plastic items.

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The problem is Wilko do online almost as an afterthought. I'm not going into town, forking out a fiver for parking, navigating my way past Eastern European gangs, benefit cheats and human binbags, just to get my ericaceous liquid rose feed for 2 quid less than I would pay without any of this hassle by doing it online. 

Companies that don't focus heavily on  their online offering such as Primark and Ikea have a unique selling point. Wilko doesn't. 

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I buy stuff when they have a sale on.

I got a few plant labels the other year. Actually someone rang me from a wilko a few miles away "did I want some plant labels at 5p a packet" 
Yes please, bring them all of them. (Didn't ask how many there were!)
I've got a box full. Which is nice as I can be generous with them and give a few packets to new people on the allotment. And I will never run out of plant labels.

The pencils go missing from my shed for fun though. Someone is stocking an argos I think with my wilko plant label pencils.

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30 minutes ago, Dipsy said:

They took over the space occupied by Woolworths locally, looks like they are going the same way, I didn't even know they had an online presence.

Well, sort of -- Wilko is, to all intents and purposes, Woolworths.  

But Woolworths was, fundamentally, a moderately sound business.  What killed it was the crazy rental terms that they got saddled with by Kingfisher when they sold off the business -- they sold the property separately from the retail business, the property side offering a sitting tenant (Woolworths) committed to 2.5% year on year rent increases baked into ultra-long leases that were difficult to get out of / renegotiate.  That pushed rents up threefold between 2001 (when it was sold) and when it went bust.  Woolworths was absolutely a victim of the finance industry, not of decreased sales during a recession or of changing shopper's habits.

But it is an ultra low margin business.  That said, when times get hard you'd think they'd benefit from increased impecuniousness -- and, if you look at the figures, they do have an increased turnover.  What's killing their profits is the increase in the minimum wage.

All that said, of course, like the vast majority of retail these days they're completely dependent on the implicit government subsidy offered by tax credits.  Absolutely stupid system.

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5 minutes ago, dgul said:

Well, sort of -- Wilko is, to all intents and purposes, Woolworths.  

But Woolworths was, fundamentally, a moderately sound business.  What killed it was the crazy rental terms that they got saddled with by Kingfisher when they sold off the business -- they sold the property separately from the retail business, the property side offering a sitting tenant (Woolworths) committed to 2.5% year on year rent increases baked into ultra-long leases that were difficult to get out of / renegotiate.  That pushed rents up threefold between 2001 (when it was sold) and when it went bust.  Woolworths was absolutely a victim of the finance industry, not of decreased sales during a recession or of changing shopper's habits.

But it is an ultra low margin business.  That said, when times get hard you'd think they'd benefit from increased impecuniousness -- and, if you look at the figures, they do have an increased turnover.  What's killing their profits is the increase in the minimum wage.

All that said, of course, like the vast majority of retail these days they're completely dependent on the implicit government subsidy offered by tax credits.  Absolutely stupid system.

More and more goods seem to be kept artificially low-priced at the till by paying the difference in price through taxation. Food has been this way for decades. Now, the money is running out it's tat too by subsidising the salaries of tat sellers..

It all serves to keep people quiet with apparent low prices.

Kicking the can down the road.

The thing is, the road is a cul de sac.

And I don't really want to pay tax just so people can afford unnecessary plastic items

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21 hours ago, dgul said:

Well, sort of -- Wilko is, to all intents and purposes, Woolworths.  

But Woolworths was, fundamentally, a moderately sound business.  What killed it was the crazy rental terms that they got saddled with by Kingfisher when they sold off the business -- they sold the property separately from the retail business, the property side offering a sitting tenant (Woolworths) committed to 2.5% year on year rent increases baked into ultra-long leases that were difficult to get out of / renegotiate.  That pushed rents up threefold between 2001 (when it was sold) and when it went bust.  Woolworths was absolutely a victim of the finance industry, not of decreased sales during a recession or of changing shopper's habits.

But it is an ultra low margin business.  That said, when times get hard you'd think they'd benefit from increased impecuniousness -- and, if you look at the figures, they do have an increased turnover.  What's killing their profits is the increase in the minimum wage.

All that said, of course, like the vast majority of retail these days they're completely dependent on the implicit government subsidy offered by tax credits.  Absolutely stupid system.

Retail. Pubs and eating. Tourism.

All expanded massively since tax credits came out.

Crap, low paid jobs that are split into 3 for tax creditors.

All going down the shitter when TCs change.

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3 minutes ago, spygirl said:

Retail. Pubs and eating. Tourism.

All expanded massively since tax credits came out.

Crap, low paid jobs that are split into 3 for tax creditors.

All going down the shitter when TCs change.

Are they really going to change that much?  I'm not convinced they are. 

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4 minutes ago, spygirl said:

Theyre chipping away.

The way to gid rid is bump up the hours to 38h/w.

Agree.  They also need to do away with the stupid self employed tax credit scam.

im not sure they will. If they really wanted to, they could have turned this around as soon as brown was gone. How many years on and the scam against taxpayers continues. 

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2 minutes ago, One percent said:

Agree.  They also need to do away with the stupid self employed tax credit scam.

im not sure they will. If they really wanted to, they could have turned this around as soon as brown was gone. How many years on and the scam against taxpayers continues. 

Um, I like that (for what is a welcome change) we have a governement that is taking the slow and steady approach to things because they apprecaite that it's people's lives that you are directly affecting with these changes.  People make choices about jobs, housing, having a family based mainly upon the current situation and so it is unfair to suddenly change everything.

The current, if misnomered, WASPI campaign has it spot on with this.  People make long term plans based upon what they know to be the current situation and then once they have made decisions they find that the rules have changed and that is now a wrong decision.

Welfare reform is something that has been quietly running for c. eight years, taking out the worst abuses first and then slowly correcting with minimum pain the other unfairness within it.

A great example was child benefit which was used by the irresponsible to have stupid numbers of kids when they couldn't actually afford to support one themselves because it all brought in more money.  So to stop this child benefit was restricted and no longer available for any child beyond the first two born after some date in the last year.   Round of applause there: no existing claimants suddenly find themselves in poverty but there will be no more huge state-funded families in the future and the number of these supported will slowly dwindle to zero over the next sixteen years.  

I confess to not really understanding tax credits but if a similar approach is taken then this will be shifted slowly to a reasonable basis.

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2 minutes ago, Frank Hovis said:

Um, I like that (for what is a welcome change) we have a governement that is taking the slow and steady approach to things because they apprecaite that it's people's lives that you are directly affecting with these changes.  People make choices about jobs, housing, having a family based mainly upon the current situation and so it is unfair to suddenly change everything.

The current, if misnomered, WASPI campaign has it spot on with this.  People make long term plans based upon what they know to be the current situation and then once they have made decisions they find that the rules have changed and that is now a wrong decision.

Welfare reform is something that has been quietly running for c. eight years, taking out the worst abuses first and then slowly correcting with minimum pain the other unfairness within it.

A great example was child benefit which was used by the irresponsible to have stupid numbers of kids when they couldn't actually afford to support one themselves because it all brought in more money.  So to stop this child benefit was restricted and no longer available for any child beyond the first two born after some date in the last year.   Round of applause there: no existing claimants suddenly find themselves in poverty but there will be no more huge state-funded families in the future and the number of these supported will slowly dwindle to zero over the next sixteen years.  

I confess to not really understanding tax credits but if a similar approach is taken then this will be shifted slowly to a reasonable basis.

I see what you are saying Frank and hope that you are right. The two child limit was a very sensible move, but why did it take so long?  This could have been implemented as soon as camoron took over.  

What annoys me is that at the same time that they are giving significant amounts of money to those who have contributed, they move the goalposts on pensions which have been contributed to.  By the time people in their 20s and 30s retire, there will be no state pension, yet they still take national insurance off working people and the rate has gone up.  

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1 minute ago, One percent said:

I see what you are saying Frank and hope that you are right. The two child limit was a very sensible move, but why did it take so long?  This could have been implemented as soon as camoron took over.  

What annoys me is that at the same time that they are giving significant amounts of money to those who have contributed, they move the goalposts on pensions which have been contributed to.  By the time people in their 20s and 30s retire, there will be no state pension, yet they still take national insurance off working people and the rate has gone up.  

The slowness IMO is because it's happening on all fronts with a relentless if steady progress.  Chop LHA down to household, reduce LHA down to lower levels so that the best rentals are not supportable by it, stop child benefits for the third child and on, only give under 35s the single room rate,  start sanctioning benefits claimants.  It may also have escaped people's attention that the big exemption from the spare room allowance / bedroom tax - that it didn't apply to pensioners - is quietly being rendered null and void by the lowering LHA applying to everyone.  Softly softly catchee monkey.

All now happening but if it had all come in at once there would have been an uproar.

It's all very senisble IMO, decide what you want to get to and start moving there in slow steps.  That way people have time to adjust.

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1 hour ago, One percent said:

I see what you are saying Frank and hope that you are right. The two child limit was a very sensible move, but why did it take so long?  This could have been implemented as soon as camoron took over.  

What annoys me is that at the same time that they are giving significant amounts of money to those who have contributed, they move the goalposts on pensions which have been contributed to.  By the time people in their 20s and 30s retire, there will be no state pension, yet they still take national insurance off working people and the rate has gone up.  

Not really - remember Camoron was in a coalition with the Lib Dems who readily acted as a stopper on a lot of change proposals such as election boundary reforms (which worked well for them and Labour in 2017 ;-))

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I think they expanded too quickly also. They opened up a large store in WestQuay retail park. The rents must be huge, as it used to be a Comet or Brantano. If those higher margin stores couldn't pay the rent, I can't see how Wilko can. They sell stuff too cheaply to cover the overheads.

They're alright for DIY bits and bobs, and stuff for the home, but they need to make themselves a destination* rather than a jack of all trades - see competition from The Range, B&M Home Bargains, and even Poundland.

*Do the Lidl trick and and have weekly limited specials/loss leaders - Parker Tools, Or Morrisons with their £1 1 Foot sausage roll.

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