More news today from the failing retailer Woolworths; it seems that unless a last minute buyer can be found, all of its stores will be closed by 5th January.
Some stores are due to close on 27th December, and before the closures there’s likely to be further reductions in prices as the administrators try and recoup as much money as possible. Currently goods are “up to 50%” off, but we could see some stock as low as 60% or 70% off, if not more, but don’t expect that on the remaining chart DVDs or console games, which are currently only 10% off.
Stores are also going to have countdown clocks in the windows to tell shoppers how long is left for the store – that must be really nice for the staff to see every day over Christmas “great just 3 days left until I lose my job”.
Some stores may be bought by other retailers, and it’s hoped that some of the jobs will be saved this way, but it’s now unlikely there’ll be a buyer for the business itself. It also looks as if some of Woolworths’ suppliers will not be fully paid for the items they’ve provided, which could of course have a knock-on effect elsewhere.Â
Related news: new logo for Woolworths.
Luckily I sold my Woolworth shares last year after buying them briefly for the assets. Property assets aren’t so attractive in a retail recession.
These retailers are always 10% growth/margin move away from success and failure it seems.