Last weeks collapse of wilko is just the latest in a series of big name retailers who were unable to survive the stresses of traditional brick and mortar retailing. So can our traditional high street survive against the might of lower cost lower overhead online giants. After unsuccessful rescue deal attempts, Wilko was forced into administration, creating uncertainty for around 12,500 jobs.
Administrators confirm the budget-conscious retailer continues trading across all stores, sans immediate redundancy plans. WILKO's shift is apparent as it halts click-and-collect orders, discontinuing online orders with in-store pickup—a decision predating administration. The home delivery service was already suspended earlier. An impending sale is hinted, possibly by next week's end. Sale specifics are unclear, encompassing acquisition considerations from stores and brand to solely physical locations or even brand name and stock procurement.
On a brighter note, discount retailers like Home Bargains and Dunelm offer alternatives to affected Wilko staff, anticipating potential store closures. However, a concern looms over consumer spending due to a cost of living crisis, raising the specter of other major retailers facing financial troubles.
Administrators confirm the budget-conscious retailer continues trading across all stores, sans immediate redundancy plans. WILKO's shift is apparent as it halts click-and-collect orders, discontinuing online orders with in-store pickup—a decision predating administration. The home delivery service was already suspended earlier. An impending sale is hinted, possibly by next week's end. Sale specifics are unclear, encompassing acquisition considerations from stores and brand to solely physical locations or even brand name and stock procurement.
On a brighter note, discount retailers like Home Bargains and Dunelm offer alternatives to affected Wilko staff, anticipating potential store closures. However, a concern looms over consumer spending due to a cost of living crisis, raising the specter of other major retailers facing financial troubles.
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NewsTranscript
00:00 The thing about being in the high street, of course, you're very public, but of course
00:05 the mere fact that you've got to have premises, you've got to have staff, and all the uncost
00:09 - you mentioned business rates - it's absolutely true.
00:11 And of course what we're living through or experiencing is the cost of living crisis,
00:15 where of course people's bills are going up because of general inflation, mortgage rates,
00:19 so people are going to switch their buying behaviour.
00:22 Woo Kogut will be a really big loss to the high street if it does go.
00:27 Our hope is of course it's gone into administration, which doesn't mean it automatically disappears.
00:31 We hope that some other high street retailer picks it up, but of course no guarantees.
00:38 Recent years have seen the collapse of many big name retailers.
00:41 Losses have been particularly felt on traditional high streets.
00:45 Shoppers tend to spend more in out of town locations, and added to that the lure and
00:49 convenience of online retail.
00:52 There are growing concerns regarding the survival of our town centres and high streets as major
00:56 retail locations.
00:58 Yeah I mean the high street was under assault anyway up until 2020, and I mention that because
01:03 of the pandemic we had all of that.
01:06 People sort of switched their buying behaviour to go onto the online purchases, so that gave
01:12 it a boost.
01:13 Do people buy in the same sort of way?
01:15 Well yeah I mean we're standing in a high street, and of course there's many shops here
01:18 that people like to visit, but hey I think we're going to have to get used to the fact
01:23 that the high street is never going to return to what it used to be when you or I were growing
01:27 up.
01:28 And indeed you go to every sort of street in the land, and the chances are you're going
01:32 to find vacant units.
01:34 I fear that this is just the beginning of more high street closures, because that's
01:41 the nature of when people get squeezed, they buy less.
01:44 After unsuccessful rescue attempts, Wilco was forced into administration, creating uncertainty
01:50 for around 12,500 jobs.
01:53 Administrators confirm the budget-conscious retailer continues trading across all stores
01:59 without any immediate redundancy plans.
02:02 Probably sort of better for it to go bankrupt, I think it's dreadful, but that's the legislation,
02:08 and they can pick up the pieces and then rehire staff on new terms and conditions, because
02:12 of course it is that sort of whole liability of the pension that they have to sort of pick
02:16 up.
02:17 So for people who did have pensions through the Wilcos, then of course there is the pension
02:22 protection fund, which of course has had a lot of calls on it in recent years, so people
02:26 get 90%.
02:27 So there is, as I say, some protection introduced, I should say, after the collapses of the Mirror
02:32 Group and the scandal of people completely losing their pensions.
02:36 While there is a brighter note, as other discount retailers like Home Bargains and Dunelm have
02:41 been offered alternative roles to affected Wilco staff, they're anticipating potential
02:46 store closures.
02:47 However, for the high street as a whole, concern looms over consumer spending due to a cost
02:53 of living crisis, raising the spectre of other major retailers facing financial troubles.
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