Report comment

Please fill in the form to report an unsuitable comment. Please state which comment is of concern and why. It will be sent to our moderator for review.

Comment

I think the first commentator is right that JLP focussed on online to the detriment of its store business as it expected online to grow much faster than it has which was a reckless assumption that incurred significant capital and operating costs far in excess of its needs.

The result of that decision is a crippling percentage of sales have been transferred from stores to online creating 2 cost bases without the increased volume of sales to pay for it.

Consider the approach of HOF that realised that a Klondike approach to online was not going to produce the expected sales leading them to cancelling its new warehouse space.

HOF store sales have performed much better than JLP where many stores have seen double digit declines that have reduced some stores profitability close to loss making.

The point to make is that if you are a store retailer then online should be no more than a service model where you do not need to lead the curve recognising that your estate gives you a significant advantage over online only retailers where many are trying to establish a real presence in the market.

Slow and sure is the best way to approach online and not be dragged along by online mania where the vast majority of companies have not earned the right to be regarded as a retailer. They are at best pick pack and post suppliers.

Your details

Cancel