Planet X Job Cuts
- Thread starter Venod
- Start date
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Andrew_P
In between here and there
If you look back a little bit in to the history, the owner took a back seat and bought in some management. Then blamed the poor performance on their purchases and management of the new warehouse move.
All available from companies house beta. I think the Sports Direct of cycling is a very good description on the Road CC Facebook posts.
All available from companies house beta. I think the Sports Direct of cycling is a very good description on the Road CC Facebook posts.
I hope they survive, I have had nothing but bargains and good service from Planet X (I know not everybody will agree with this) a lot of the people that work there are cyclists themselves and a visit to their stores is always a pleasure.
U
User482
Guest
Just make sure it has the right-sized seat tube, as they don't seem to be able to manage it on their London Road frames...
U
User482
Guest
There's quite a lot of stuff about it on STW: I've no personal experience with the frames but it seems their attitude to warranty problems is dreadful.
srw
It's a bit more complicated than that...
Different business models. Planet X have always seemed to be an Aldi of bike retailing - mostly good quality but you can't guarantee to get exactly what you want, and you probably won't have heard of the brand name. Very low overheads in terms of stock held, warehousing and staff, and little advertising. Compare and contrast Wiggle, who maintain a very comprehensive stock of every big name item you've ever heard of, and who advertise like billy-o - a bit like Sainsburys.
Both probably have similar margins, but the Wiggle business model is probably more resilient to external shocks. They can afford to trim back a bit of advertising, have the clout to screw a better deal out of Shimano, or can stock slightly less.
Cycleops
Legendary Member
- Location
- Accra, Ghana
Well, if Tesco couldn't do it...
Why is it some operations want to break into outside markets before getting their home market right?
EasyPeez
Veteran
- Location
- Cottingham, East Yorkshire
Well, you only get one life after all...
Why?
Drago
Legendary Member
- Location
- Suburban Poshshire
Brexit hasn't happened. Article 50 hasn't been activated. Somehow can something that had not happened be to blame?
Andrew_P
In between here and there
What apart from 20% increase in the cost of any item not made 100% in the UK? GBP to USD the week before the Vote $1.55 last time I bought any I got $1.175
Drago
Legendary Member
- Location
- Suburban Poshshire
And 'Brexit' caused this how, exactly?
I think you'll find the cause of that lies with speculators, people who buy and sell currency with the intention of making a profit. They rely on a trend in either direction to trade against, and their very actions create and sustain that trend. Ever wondered why the pound suddenly isn't worth exactly one Euro or One dollar? Because no one could make a profit by simply moving it around if it were. This current trend can cause problems for trade, but increases profits by speculation at ratio of over ten to one. Retailers suffer, bankers and their traders love it, but only in the short term. The money hasn't vanished, it's simply changed location from one sector of business to another. Recession isn't a lack of money, but a lack of movement of money. It might cost you more to but your dollars for your holiday, and it'll cost an imaginary trader more too, but they'll have many, many more pounds with which to buy them.
"Brexit" is at this time an abstract concept, not a physical reality. The phenomena we see in this regard are the actions of people profiteering on currency at the expense of profits made in other sectors of the economy. Brexit is an excuse, not a cause. In Planet X's case their woes are caused by the actions of currency traders and the impact they have caused on the relative value of our currency.
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bikingdad90
Guru
Reading through there annual accounts it would appear they have made some drastic changes to the company.
A reduction in stock levels and a reduction in working capital which is reducing the amount of available cash. They also look to have refinanced some loans.
As they have now shut their US operations and started to wind down that company it will be no surprise that staff will have been let go as a result of the downsize.
There are also likely to be cost savings stemming from "spend to save". Iniatives. Investing in new and innovative equipment and programs can also lead to efficiencies and savings in the long run.
If they dabble in hedging to control their currency exposure they are likely to be fixing now for the next 6 to 12 months which given the climate will push costs up too.
A reduction in stock levels and a reduction in working capital which is reducing the amount of available cash. They also look to have refinanced some loans.
As they have now shut their US operations and started to wind down that company it will be no surprise that staff will have been let go as a result of the downsize.
There are also likely to be cost savings stemming from "spend to save". Iniatives. Investing in new and innovative equipment and programs can also lead to efficiencies and savings in the long run.
If they dabble in hedging to control their currency exposure they are likely to be fixing now for the next 6 to 12 months which given the climate will push costs up too.
