Big fall in the share price today
Dinosaur business. Expensive retail sites with a low margin product doesn’t sound like a great model to me
I stay away from retail for that reason. But it can be done, Best Buy (essentially a US version of Dixons) is still doing well.
It is not available on Freetrade.
US Businesses get so many tax breaks that they just aren’t comparable. On top of that workers rights are near non-existent vs the UK so you can staff stores on far fewer staff & comparably lower salaries.
I wont say that it can’t be done in the UK, but companies that can compete with the etailers are few & far between and you can count the stock market listed ones on 1 hand.
I noticed that many high street brands are slowly dying out unless they are offering some unique atmosphere or experience. I wanted to mention examples but the only one I have in mind is Apple Store (albeit they are not quite “high street-ish”) - this one is just unlikely to ever experience a shortage in demand, which I would not say about 90% other shops that completely lost their purpose thanks to Amazon, Booking, Skyscanner, etc, as @ytsruh suggested .
All this stuff is supposed to be priced in. A big fall like this means the forward guidance was wrong (ie a profit warning). Profit warnings aren’t supposed to happen.
There is a very good [free public] tool from EY for profit warnings which shows you ‘what happens next’. Bookmark it for when you find yourself holding the bag.