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Showing posts with label Sir Philip Green. Show all posts
Showing posts with label Sir Philip Green. Show all posts

Tuesday, 1 April 2014

Sir Philip Green's Lottery Tickets

"Maybe it's an opportunity.."
Commenting on BHS's move into food retailing, Sir Philip Green said "On the basis that everyone is going into the high street and convenience, maybe it's an opportunity. If you don't buy a ticket, you can't win the lottery."

Given M&S and Waitrose have already made such a success of premium food retailing, the move into food isn't surprising. The £1 round pound price pointing is.  

Tied to brands, lower prices than the majors, Booker's supply chain and a maximum 50 BHS outlets selling food in the next six months, there doesn't seem to be a whole lot of money to be made...Hardly a lottery win.. and Sir Philp has no passion for food retailing, never has. So why jump into the UK Grocery price war unnecessarily?

Green bought BHS in 2000 for £200million and has been re-shaping it ever since. In 2006 he began discussions with Asda and Debenhams to sell BHS but market conditions were just too tough, the timing wrong. In the intervening years, absorbed inside Arcadia,  a number of stores were sold off to Primark, the discount clothing retailer. 

When Green says "everyone is going into the high street and convenience" - his "everyone" is other retailers. The real lottery tickets are BHS' outlets.

Re-enter Asda. The George clothing range could plug and play into existing BHS stores, their grocery supply chain can deliver low price food everyday....The environment is still tough but Asda are now looking for growth beyond superstores. It's all about the timing..

The "for sale" sign has been nailed over the BHS estate. Sir Philip just needs to grab some attention and prove BHS stores can sell great value food to price conscious shoppers to sell BHS to Walmart. "Maybe it's an opportunity". 
Winning lottery tickets indeed!



Monday, 24 March 2014

Liverpool 1 Everton 2

Allegedly, Tesco boss Phil Clarke had a nightmare and woke suddenly on Saturday morning to the vision of Cilla Black shouting "Surprise, Surprise!"


The real surprise was worse. Philip Green's announcement of BHS muscling in to the food market, with a branded, discount food offering, brought more pressure to the UK retail cauldron, as if any were needed.

On reflection, the move is not so surprising. Grocers have spent a great deal of time breaking into the home-wares market, it is only reasonable to expect some push back and John Lewis Partnership have proved the case for department stores branching into food.

At least Phil Clarke got some respite watching his resurgent Liverpool. Mind you, Everton are doing ok without David Moyes and receive wily business advice from two illustrious supporters of their own: Sir Terry Leahy and Sir Philip Green.

With Leahy due to front the IPO of discount chain B&M, and Green dropping his BHS bombshell, it seems the Evertonian duo are intent on devouring Clarke's scouse by the spoonful..

It's all kicking off. Turns out this isn't business after all; it's not even personal: it's football. And as the late, Bill Shankly famously remarked, "it's more important than life and death".