Quote:
Originally Posted by Richard_FM
Rumbelows managed to keep a high profile with their ads & sponsoring the league cup, but I understand the were always a loss leader for EMI, which probably explains why they were a casualty of the early 1990s recession.
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Sometimes it's not about making a profit in that particular business-unit; if they break even but increase the profitability of another unit within the business (manufacturing, for example) by increasing sales-volume, it may still have been worth running the shops at a notional loss. The loss can of course be offset against your corporation-tax-bill too.
The 1990s were kinda tough for the smaller electronics/white-goods retailers; Wigfalls was another which mysteriously seemed to vanish from the high-street along with some of the smaller supermarkets (Kwik-save, Victor Value, International Stores...) in the same timeframe.