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Originally Posted by sortedradio
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That latter thing I do find baffling. It's not as if 4000 CMOS chips or transistors rot after a few days. You'd think they could have at least, I dunno, ten or something.
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I've never understood why with low value components, i.e. resistors, they only stock 2 of each item. It wouldn't cost much to increase this to a more useful level. Stock levels are obviously set by someone with no idea of the needs of the customer. If the item is high value I can understand not wanting too much money sitting on the shelf. I always joke with the staff that Noah must be in charge of stock control! |
I think the problem stems from the fact that they were primarily a mail order company so all their inventory to service the whole of their customer base nationwide was in a warehouse on an industrial estate. But then they started to open shops, which grew to 215 - many in smaller towns, with 2,500 staff. They had to either site the shops in high streets in high cost locations to gain the footfall, or in cheaper out of town stores on trading estates or ring roads. Before internet came along, out of town locations were 'destinations' to which the likes of us would travel, but when internet/ebay/paypal came along, that changed the dynamics. They have quite a large store on in industrial estate on the outer ring road of York. Who on would travel there when they can go online and have the stuff tomorrow?
With so many shops to service, if they carried stocks of components in any depth, they're have more in their shops than in the warehouse. At one stage they had what they called 'Mondo' stores in large cities such as Nottingham, where they carried the full inventory in depth. I think they did the right thing to 'trade up' to try to raise the 'average purchase value'. As an example, they sold 10,000 drones last year.
Where I think they went wrong is to not rationalise their inventory.
They clung on to Doug Simmons original concept of selling electronic components, ignoring the 80/20 principle - that 80% of their turnover will be from 20% of the inventory. They'd have been better ditching all the stuff that we - as a tiny and reducing minority - are interested in: all the low value, low turnover electronic stuff - semiconductors, resistors, caps, fuses, transformers, enclosures, pots, plugs and sockets and so forth. It's clear from this thread that for all their efforts, all that they've got is a customer base for this flotsam and jetsum, that is dissatisfied and is looking elsewhere.
If it does survive, a new owner will be very selective in only being prepared to cherry pick those stores - maybe 25 at most, that are profitable, and possibly retain an internet presence. Of course, they've got quite a business in the Far East too, which handle more than 500 suppliers and 5,000 buying items for the parent company. The major product categories include cables, power supplies, electronics components, kits and tools, communication equipment, computers, toys, automotive electronics, and consumer electronics.
They don't need any shops to stay in business under a new buyer. Amazon doesn't have any shops and ASOS doesn't have any shops but are doing nicely thank you.
Remember Staples - the office equipment suppliers? They use to have large stores in most larger towns and cities.
Maybe few have noticed that they're not around any more. Staples haven't gone bust -they've gone online. In November 2016, Staples stores were purchased by Hilco Capital and are now under new ownership. 'Office Outlet' is now operating as a separate business to Staples UK Limited, which includes Staples Online website and telephone order line, and Staples Advantage. In Hull, the first thing that Office Outlet did was to close the large Staples store in the town (ironically, next door to Maplin!), and to move to a site on the inner ring road next to the likes of Halfords, PC World, The Range.
It's not helped that Maplin has changed ownership several times, which is disruptive and doesn't help in planning a long term strategy that works.
Basically, I think it's gone down the gurgler. Sadly, I think before too long, 'Maplin' will only be spoken of when prefaced with 'Do you remember...
BHS, Tandy, Toys R Us, Woolworths, Blockbuster, Our Price, C&A, Wimpy, John Menzies, Rumbelows, Happy Eater, Lyons Tea House, Timothy Whites were all once household names.
(A few Jessop's shops have ben resurrected).