RIP Woolworths (and my portfolio update)

Thursday, 11th December 2008 11:45 - by Resident IFA

So here it is, a final indication of how bad things are in late 2008. One of the most well-known UK High Street retailers, Woolworths, is being read its last rites. With £385 million-odd of debt and a business model that appears not to have moved with the times, this ending is hardly surprising in today’s harsh economic and business climate. No-one is prepared to take the risk of buying the chain outright, more the vultures (perhaps Tesco, Sainsbury’s, ASDA, et al) seeking to cherry-pick the best stores and locations instead. At the risk of being overly-nostalgic, I remember Woolies Top 40 vinyl singles display and being wowed by the Pick-n-Mix possibilities as a child. In a moment of immaturity, I even bought a Wet Wet Wet album on cassette for goodness sake! Most of us have our memories of Woolies as a permanent, reliable High Street presence, but their stores will struggle to be open into 2009 as I understand it. The smaller, more profitable shops may survive, but probably not with the famous name above the door. What a shame Woolies has been bowled out…although the 3rd Umpire is still poring over the video replays…for 99 (years). It is, I think, a salutary tale of how businesses, especially retail, must move with the times and not rely on a business model that worked 20-30 years ago. I can’t seem to remember Woolies making any kind of tie-up with a music download company, seeing this as a key area they perhaps lost out on. RIP Woolies and their old-fashioned stores. Where will I buy my super-size bars of chocolate from now?! =========================================================================== I blogged on 29th October about my 8 Share portfolio, and how I was dipping my toe in the murky waters of individual equity investment. 6 of the Shares are currently showing a profit. The other 2 are causing me concern, but I have foolishly not set a down-side selling level, so will persevere with them. One reached its profit target last week, but I foolishly (detect any pattern?!) set an intra-day limit slightly higher as I thought it would keep rising for a couple of hours and a few more pence…lesson learnt. When I eventually get the chance to re-invest my profits, I may well re-jig my research criteria to seek out more potentially ‘explosive’ (and perhaps riskier) Shares, not the plodders it seems I now have. We’ll see. Until next time…