Six months ago, I wrote about hight-street retailers DEB (Debenham) and NXT (Next). I had made a note to myself to write a six months follow-up. Hence this post.
DEB was 42.75p, is now 29.56p.
NXT was 3890p, is now 4953p.
I was bearish on both of them. So I was half-right.
DEB seems to have gotten itself in a bit of a financial mess.I have always thought DEB merchandise to be too pricey.
MTC (Mothercare) announced its results today, causing its shares to drop 28%. Obviously not a good sign. I do not really see how MTC has any reason to exist. Its UK L4L sales declined 7.2%. Its online sales also declined, as did international sales. It seems on a long, slow, painful decline to irrelevancy.
I just read that MTC has introduced in-store cafes. This is not new, though. The idea goes back to 2012. A quick Google revealed that in 2015, the Telegraph reported:
Mothercare scraps yoga studios to put in play areas
I recall that HMV introduced cafe stores in a bid to keep punters in the store longer. Perhaps setting up cafes in-store is a sign that a chain is reaching. Yoga studios seems just bizarre. It is a sure sign of utter desperation.
MTC must surely be toast. It’s just a question of time.