Friday thoughts - Threshers

[Marcus Cauchi]

Hello everyone, I thought that I’d open up a new topic for everyone to have a bit of a think about.

Threshers. Very sad. But what could they have done to combat this in a Sales context? Why hadn’t they identified their possible structural and system errors earlier on and taken measures to rectify these issues?

The withdrawal of trade credit insurance ultimately damaged the company’s ability to buy stock and suppliers became reluctant to supply without upfront payment. What could Threshers management and sales teams done about this? Why weren’t they able to reassure and secure suppliers?

I look forward to hearing your thoughts...

Marcus

 

[telemax]

Too complicated. Ulitmately know one will ever know what causes a company to fail especially a large company. There are too many personalities, huge amounts of company politics. Mix it in with the fact that lots of retailers became complacent over the last 10 years of boom and were totally unprepared for a downturn, maybe that is part of the answer.

 

[Bri]

...also have bearing, buying a case of lager for less than a tenner or three bottles of wine for a tenner will always push the independant retailer backwards.

The day when all this stops is when the independents can rise and prosper again.

 

[toastking]

The supermarkets are too cheap these days and so the stores dependant on selling just alcohol cannot compete on prices unless they lose out on profits. Its an unworkable business plan and I would not try and do it on a large scale as with Threshers myself, I think I would have possibly looked into diversification of my product line.

But as previously mentioned, its not down to one person and so you can never know what really went wrong.

 

As with nearly everything if the supermarkets target your industry,Run for the hills.

They have so many strengths to beat you.

Huge regular customer base.

Huge buying power.

Huge experience in selling.

Huge networks.

Huge car parks.

Earl

 

[PurpleCommunications]

Its just another sign of the dominance of the supermarket chains. Local Butchers, Bakers and corner shops. Even the likes of Woolworths and Zavvie. A recent report stated that Asda had overtaken M&S for the clothe sales for the first time.

Like it has been said, to try and compete with the supermarkets is almost commercial suicide. They are so convenient, everything under one roof, good parking and the prices and quality are not to bad either.

It is a real shame the way the high street is changing, but this has been going on for years, and unless people vote with their feet and use local suppliers more or the government restrict the growth of the main players then IMHO it is only going to get worse.

The only places that seem to keep going are in the very rural areas that do not have a large supermarket with in 20 odd miles.

I feel sorry for any of the Threshers staff that are going to lose their jobs just before Christmas.

 

[telemax]

Actually , I can only speak for my area but there seems to be a bit of a backlash against the supermarkets. Some of the small businesses that market themselves well are doing great business.

Just down the road we have a farm shop that sell either their own grown products or very locally sourced stuff, in fact they really emphasise "food miles". They are taking on about 20 staff and expanding. It's the same distance as the local Waitrose/Sainsbury's etc. The veg and meat is a far higher quality than supermarkets, and nearly all locally produced, but the same price.

The best part is that they let the kids feed the animals and have pedal cars and tractors, it's totally safe for them to run around in the open air. From a parents point of view this reallly takes the pressure off shopping. I think this shows that competing with the supermarkets on a small scale is not a completely lost cause if done properly.

 

[jane p]

Like it has been said, to try and compete with the supermarkets is almost commercial suicide. They are so convenient, everything under one roof, good parking and the prices and quality are not to bad either.


its laziness thats what it is! In terms of butchers, they arent butchers, they dont sell quality meat, they dont employ butchers working away in there to give you help and advice. Butchering is a skill, supermarkets have done their best to do away with it by just selling some prepacked meat.

Its not like buying a bag of sugar of tin of beans.

If your so lazy as to buy your meat from a supermarket then you are cheating yourself. Its often dearer too.

 

[jane p]

i used to have a job in Threshers years ago. Its a shame to lose shops.

 

[StefanK]

Like it has been said, to try and compete with the supermarkets is almost commercial suicide. They are so convenient, everything under one roof, good parking and the prices and quality are not to bad either.


its laziness thats what it is! In terms of butchers, they arent butchers, they dont sell quality meat, they dont employ butchers working away in there to give you help and advice. Butchering is a skill, supermarkets have done their best to do away with it by just selling some prepacked meat.

Its not like buying a bag of sugar of tin of beans.

If your so lazy as to buy your meat from a supermarket then you are cheating yourself. Its often dearer too.

You say the quality is not too bad and prices cheap in the first sentence but then in the last say the opposite...???!!

Supermarkets are not cheap or quality, it tends to be that people nowadays know no better, or with most products they are branded and there is little room for difference in quality.


I don't think the biggest problem for Threshers was the supermarkets - I think they positioned themselves at aiming for the 'higher end' of the market, and totally discouraged many of an off licenses traditional customers. At the same time, the popularity of wine clubs et al rose, pushed by the Mail and Telegraph etc...

They also treated their staff very very badly, if the two stores an ex used to work in are a typical example.

 

[jane p]

You say the quality is not too bad and prices cheap in the first sentence but then in the last say the opposite...???!!

Supermarkets are not cheap or quality, it tends to be that people nowadays know no better, or with most products they are branded and there is little room for difference in quality.


I don't think the biggest problem for Threshers was the supermarkets - I think they positioned themselves at aiming for the 'higher end' of the market, and totally discouraged many of an off licenses traditional customers. At the same time, the popularity of wine clubs et al rose, pushed by the Mail and Telegraph etc...

They also treated their staff very very badly, if the two stores an ex used to work in are a typical example.

the quotes have gone wrong. I did not say the first line it was someone else.

Shopping for everything in one place is lazy and all you do is close other shops down. Use them or lose them as they say!

 

[StefanK]

the quotes have gone wrong. I did not say the first line it was someone else.

Shopping for everything in one place is lazy and all you do is close other shops down. Use them or lose them as they say!

Definately. I save massive amounts by shopping for various things in different places - the most overpriced things in Supermarkets tend to be toiletries, fresh veg and sauces, all of which are hideously overpriced, and can be obtained for around a third of the price by visiting the local grocers and a 'whats in store' style place such as Home Bargains.

 

[skyhi2]

Threshers went the same way as a lot of pubs are going,down the pan.

They simply could not compete with the supermarkets,it`s not rocket science.

Neither could the 100`s of public houses that have been shut down ( so far,with more to come ).

Skyhi2.

 

[Marcus Cauchi]

Threshers went the same way as a lot of pubs are going,down the pan.

They simply could not compete with the supermarkets,it`s not rocket science.

Neither could the 100`s of public houses that have been shut down ( so far,with more to come ).

Skyhi2.

Referring back to my original post, do you think there is anything they could have done to secure that pipeline? Like you said, they couldn't compete but, what mistakes do you think that they made by not strategising for this?

 

[Dot Design]

Supermarkets are currently offering their alcohol at ridiculous prices and basically making up their money on the other items bought elsewhere in the store.

I'm lucky and shortly moving to an area that has a busy high street that at a guess is at least 90% independent stores, butchers, bakery, grocers etc this I know is going to change the way I shop.

But the problem was that these kind of shops (butchers, etc) disappeared from our high streets without anyone really noticing until it was too late and now there is almost no where to shop EXCEPT the supermarkets for some people.

That is the real shame of it and now they are starting to do it with our Pubs, off licenses etc

 

[skyhi2]

Marcus,they did not make any mistakes.

You think the top jollies at whatever supermarket head office are saying " ahhhhhhh,its a shame Threshers went bust " ?,like hell they are,it`s more like " well that`s another chain we put out of business------Next ".

Next ? Hmmmmmmm let me see- Dairy Farmers/Fruit Growers/Vegetable farmers !!!!!!!

These people have the power to make or break,and unless legislation is put in place to stop them they will just carry on regardless.

You think the government are thinking of imposing a minimum price on alcohol to stop binge drinking by local kiddies ?,it`s to try and stop what unfortunately happened to Threshers and the majority of local boozers that have been forced to shut because of the prices they are selling at.

Albeit,they " woke up and smelled the coffee " too late for many,as per usual.

Maybe Threshers could have been saved if the legislation could have been brought in 18 months or so earlier,but,who knows.

Sweden have got it about right with the way they sell booze.

Government run,by men in white coats and very expensive.

If they want cheap booze they have to make it themselves or,go over the border in to Finland for it

Skyhi2.

 

[Marcus Cauchi]

Marcus,they did not make any mistakes.

Hi Skyhi2, thanks for your opinion but I don't agree.

In my experience many people respond to failure with blame. If you have had had any failures, how have you reacted? I struggle to believe that there is nothing in their planning process that they could not reflect upon as having altered to a different outcome.

Many people use blame rather than self assessment.

Marcus