[Magdalen] Gump's San Francisco Closes.

[Roger Stokes]

On 11/08/2018 01:36, cantor03--- via Magdalen wrote:
> We are poorer for the loss of American department stores.

The loss of department stores is not peculiar to the USA and is 
happening over here as well. In fact all sorts of bricks and mortar (or 
more recently concrete and glass) stores are closing - either entire 
chains or some of their outlets. Only this week House of Fraser went 
into administration (a step short of total bankruptcy which allows 
continued trading under the oversight of a firm of accountants) but has 
now been bought by someone else. Over the years it has acquired a number 
of other stores with a high reputation but had run into financial 
difficulties. As part of the administration creditors, including 
suppliers and concession holders, are likely to get pennies in the pound 
of what they are owed, putting extra pressure on them.

Part of the reason for the decline of traditional stores has been the 
growth in internet purchasing and another has been the costs of having 
large town centre premises. These include rent on premises they lease 
and in some cases what is called a Company Voluntary Arrangement, a step 
short of administration, has seen landlords having to agree cuts in the 
rent to allow the company to keep trading. Interestingly locally recent 
weeks has seen two arcades of small shops made out of larger units open 
for business. This gives small companies and sole traders the chance to 
have a town-centre toehold without the expense of even a small shop. We 
will see how they go.

Roger