Thursday, 20th June 2019 10:34 - by Rajan Dhall
These guys had a hard time since 2016. Below I have put in a monthly chart that shows the capitulation from just over 500p to the 110p we are at today. There are soo many headwinds against this high street giant. Online shopping provides such a big competitive advantage against over the high street. Now the trust in returns policy's are higher and the tech-savvy younger generation emerge I can only see the problems continuing.
Yes, they will gain revenue from credit creation but since phone contracts have become longer the sales life cycle means revenue is harder to come by. The next step for the Co. is the rescue plan, just last year they announced the closure of 92 of its 700 stores. The Co. also say they hope the mobile business will breakeven in the next two years, but there are sure to be more challenges in that time horizon. I think they face a fight to survive.
Preliminary results for the 12 months to 27th April 2019 highlights:
The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.