Today is the last day of Lockdown 2.0. Hurrah! We have survived. Debenhams, sadly, has not. The two hundred and seventy something year old chain of department stores has failed to attract a buyer and will be wound down by the administrators. I like Debenhams. I will miss my local branch. But I recognise a tired, non viable business when I see one. Its demise will be sold by some as another retail victim of the lockdown. Anti lockdown folk will point fingers of blame at the government and lament the sacrifice of thousands of jobs for the pointless purpose of saving the lives of a few very elderly people who would be dead soon anyway.
But the truth is that it is a minor miracle that Debenhams even made it into the 21st century. And the anti-lockdown folks will completely miss the irony that lockdown has done nothing more than ever so slightly hasten the end of the town centre department store, much like a virus ever so slightly hastens the end of octogenarians in a care home. The stores will reopen to sell off their stock, but will likely close their doors for the final time not too long after Christmas. This saddens me. Bournemouth had three departments stores at the beginning of the year. Debenhams, Beales and House of Fraser. That was at least two too many. Beales bit the dust just before Lockdown 1.0. Which means, alas, that the one I cared for least, Frasers, is the one that has survived. For now…
Every cloud bears a silver lining. Mrs P and I will now launch Operation Vulture. We will regularly scout Debenhams when it reopens. There will be bargains to be had. We will pick through the carcass of our local store for the choicest morsels. We have our eyes on Green Pan griddles and woks. We could be tempted to make a few other purchases for the home if the price is right. Debenhams might have run right out of luck. But ours might yet be in. I do hope that once this is over though, that a good use is found for the glorious building that Debenhams occupies right in the heart of town. I fear for the worst though. The old Marks and Spencer just metres up the road is still vacant two years after their doors closed.
#debenhams #lockdown #highstreet
The Mexile 
As you know, I am not a fan of economic lockdowns. But you are correct. Debenhams death was a lingering one and came about because it was the equivalent of a 72- year-old obese male with high blood pressure and diabetes who came in contact with the feared virus. The odds would not be with them. Nor were they for Debenhams.
The bigger problem is that your government is currently keeping zombie businesses on economic life support and is thus draining tax pounds that could be directed elsewhere to meet the needs of these layered problems. On this one, the Trump administration probably acted wisely: letting strong businesses survive on their own while dodgy enterprises joined the list of beaver hat manufacturers. The cost was an otherwise-unacceptable level of unemployment that was met with an increase in unemployment insurance payments — some workers actually were paid a good deal more in payments than they earned in wages. The result is that the American GDP this year will outstrip Britain’s.
The irony is that China, the mother of this mess, is the only large economy that will be smelling of daisies rather than pushing them up.
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We’ve probably discussed lockdowns previously. I’d suggest that unlike the Far East, we didn’t really have lockdowns. You might point out that Taiwan did not lockdown. The counter to that would be that closing your borders quickly enough means that you can operate a lockout instead. But we’d all agree they’re no fun and cause their own problems. Lockdowns need to have purpose and a plan. Our western democracies had neither. But the net result is that China’s superior economic performance is perhaps not ironic, but the expected consequence of policy.
I think there are pros and cons to be had with both US and UK fiscal responses. The hand outs here were far more targeted, yet the final outcome will be the same as in the US – all the unviable businesses will ultimately fail. It’ll just be a more staggered process. There are, as I say, pros and cons to that. On a personal note, I prefer the UK approach. I didn’t need a cheque from the PM. But had I needed time to sort out a cash strapped future, I’d have appreciated that.
The biggest losers here will be anyone involved in commercial property rental. Shops and offices aren’t going to do well for a long time. Unfortunately for almost everyone, pensions are often the big property investors.
And almost everyone’s GDP performance will outstrip the UK’s. We’ve got all our economic eggs in one basket, which we’re currently trying to carry across a tiled floor covered in oil whilst wearing heels. Spain is the only one getting hit worse, off the top of my head. They just have one egg, called tourism.
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There was an obvious con to the UK bailouts. That being the cons. Ie, fraud. The govt ran a scheme called Eat Out to Help Out, where the taxpayer chipped in £10 for each meal eaten at a table in a restaurant. It was as successful in putting bums on seats as it was in predictably spreading a second wave of the virus.
But I digress. One franchisee of a famous pizza chain claimed a couple hundred thousand pounds from the promotion. Despite not actually having any eat in restaurants. They were delivery only. And are now, needless to say, in a spot of bother with the taxman.
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So Vultures B US! It’s a shame that I cannot be there to partake of all the offerings but maybe I can take advantage of the same here in Mexico. Best Buy is closing it’s fifty-one stores here. I suspect that they will have tremendous after Black Friday sale soon. I’ll be shopping for printer. I’d like one of those malfunction wireless ones. Wish me luck.
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I’m sure Best Buy were just opening their first store in Mexico not long before I left in 2011. They didn’t last long. Still, they lasted longer in Mexico than they did here in the U.K. I think less than 24months passed before opening and closing of Best Buy U.K.
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Picking the bones clean is a time honored tradition. A hardware goes under, I’m filling my nuts and bolts containers. I added an extra foot of insulation to my ceilings when a local building supply went belly up. It was about 20 cents on the dollar.
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Wish I was there. I can never have enough hardware in my shop. I may not know that to do with it or if I will ever use it! But who knows, someday I may have a need/use for that thingamajig?
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So far I’ve bought nothing more than a Lindt advent calendar. As I bought it on the 2nd of the month, it’s fair to say they were all going cheap everywhere.
I shall return this afternoon.
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If Grace Brothers goes, we’re all screwed.
Oh wait…
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It’s been some time since we were last being served…!
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