The high street braced itself for the biggest closing down Sale in history as hopes of finding a buyer for Woolworths fade.
Woolworths’ closure would be the highest profile since C&A’s exit from the UK in 2000 and the scale of the launch yesterday could potentially destabilise rival retailers’ promotional strategies during the key Christmas period.
Shuttering Woolies also threatens to leave gaps in many town centres, diminishing their appeal and undermining consumer confidence as empty stores stand as a stark reminder of the reality of the economic downturn.
As Retail Week went to press, hope had been all but abandoned that the variety store chain could be sold as a going concern, despite potential takeover interest from former Kingfisher chief Sir Geoff Mulcahy, investor Ardeshir Naghshineh and ex-Spurs boss David Buchler.
Woolworths stores are now likely to be sold off piecemeal, with deals already agreed on hundreds.
Food retailer Iceland has bagged 50 stores and Woolworths administrator Deloitte is understood to have agreed to sell as many as 350 more shops to grocers, fashion retailers and value retailers.
Ernst & Young director Jason Gordon said Woolies’ closure had implications for other retailers. He said: “If it turns into an extremely large closing down Sale, it will have a knock-on effect. A lot will depend on the depth of cuts applied by Woolworths.”
However, a director of one entertainment specialist said: “Clearly the Sale is not helpful to us. But Christmas is all about new releases and due to Woolworths’ lack of supply, it hasn’t got any.”
The Entertainer managing director Gary Grant said his toy chain might suffer “pain” in the short term, but believed the impact would be mitigated by lack of key stock at Woolworths.
A chief executive of another retailer was optimistic that rather than hitting rivals’ sales, Woolworths’ promotion might improve them. That was his experience last week, when Woolworths ran its “biggest ever Sale”.
But GfK NOP’s retail research director Helen Roberts said the impact on shoppers’ mindset would be greater than other retail collapses.
She said: “Woolworths is one of the most visible stores. It will leave a psychological as well as physical space on the high street.”
Deloitte said it is still seeking a buyer for the business as a going concern but it is possible some stores may close before the end of December.
Shuttering Woolies also threatens to leave gaps in many town centres, diminishing their appeal and undermining consumer confidence as empty stores stand as a stark reminder of the reality of the economic downturn.
As Retail Week went to press, hope had been all but abandoned that the variety store chain could be sold as a going concern, despite potential takeover interest from former Kingfisher chief Sir Geoff Mulcahy, investor Ardeshir Naghshineh and ex-Spurs boss David Buchler.
Woolworths stores are now likely to be sold off piecemeal, with deals already agreed on hundreds.
Food retailer Iceland has bagged 50 stores and Woolworths administrator Deloitte is understood to have agreed to sell as many as 350 more shops to grocers, fashion retailers and value retailers.
Ernst & Young director Jason Gordon said Woolies’ closure had implications for other retailers. He said: “If it turns into an extremely large closing down Sale, it will have a knock-on effect. A lot will depend on the depth of cuts applied by Woolworths.”
However, a director of one entertainment specialist said: “Clearly the Sale is not helpful to us. But Christmas is all about new releases and due to Woolworths’ lack of supply, it hasn’t got any.”
The Entertainer managing director Gary Grant said his toy chain might suffer “pain” in the short term, but believed the impact would be mitigated by lack of key stock at Woolworths.
A chief executive of another retailer was optimistic that rather than hitting rivals’ sales, Woolworths’ promotion might improve them. That was his experience last week, when Woolworths ran its “biggest ever Sale”.
But GfK NOP’s retail research director Helen Roberts said the impact on shoppers’ mindset would be greater than other retail collapses.
She said: “Woolworths is one of the most visible stores. It will leave a psychological as well as physical space on the high street.”
Deloitte said it is still seeking a buyer for the business as a going concern but it is possible some stores may close before the end of December.
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