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Makes You Think
Micawber
Posted: 19 November 2017 08:04:43(UTC)
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Maybe a thread for general news items of relevance to thinking investors?

First up, an article in today's Guardian/Observer: https://www.theguardian....high-street-shop-london

With several links in it to other articles of interest to anyone invested in the UK retail sector.
MoMoney
Posted: 19 November 2017 09:11:00(UTC)
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What’s your take on UK retail - is there any value out there for a medium term / long term hold. Collect dividends whilst bricks and mortar companies digify their offerings...
having spent some time outside of London recently the high street seemed to be on its knees but not retailer (jd m&s)
DJLW
Posted: 19 November 2017 09:17:17(UTC)
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Or this one about trackers - does it give you more or less confidence in how they work? -little bit less for me

http://www.telegraph.co....est-money-tracker-fund/


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Micawber on 19/11/2017(UTC), Sara G on 19/11/2017(UTC)
Micawber
Posted: 19 November 2017 12:02:23(UTC)
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DJLW;53397 wrote:
Or this one about trackers - does it give you more or less confidence in how they work? -little bit less for me

http://www.telegraph.co....est-money-tracker-fund/




Very interesting. For me, neither reassuring nor alarming.
Micawber
Posted: 19 November 2017 12:10:08(UTC)
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MoMoney;53396 wrote:
What’s your take on UK retail - is there any value out there for a medium term / long term hold. Collect dividends whilst bricks and mortar companies digify their offerings...
having spent some time outside of London recently the high street seemed to be on its knees but not retailer (jd m&s)


The only retailer I hold at present is Boohoo.

I'd say that REITs with mall-type portfolios are likely to do poorly, especially away from major cities. As they have done lately in the US.

The UK retail sector overall is vulnerable on real wages squeeze, inflation, interest rate rises and credit squeezes, and sterling depreciation perhaps, where import costs are a factor.

But there are waves when the tide goes out just as there are waves when the tide comes in. Individual retailers' prospects will vary. There may be recovery situations (M&S - their socks are getting better again...). There are newer retailers with upwards momentum (Ted Baker etc.). And there are retailers who are now, perhaps belatedly, investing heavily in online sales.
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MoMoney on 20/11/2017(UTC)
Captain Slugwash
Posted: 19 November 2017 16:06:49(UTC)
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I only hold one retailer, as they are not something I use, or understand.
I am an internet shopper 9 times out of 10, and I see a limited future for the sector, and indeed retail REITs.

My one holding is SBRY. Consumer Defensive you may say, but they don't make things, only sell them, which still makes them a retailer in my book.

It is a gamble really on the Argos acquisition which I hope gives them a chance to compete with Amazon in the UK. That business model is the future I think.
If it isn't, well I shall pick up a reasonable dividend while I wait.

Maybe I should get MKS as I get a lot from them online?
That very sad comment identifies me as a man of a certain age. :)
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Mr Helpful on 20/11/2017(UTC), Tony Peterson on 21/11/2017(UTC)
colin overton
Posted: 20 November 2017 10:12:59(UTC)
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I tend to shun "The Shops", but recently took a walk round Chester, a prosperous NW town, or so I thought. I was shocked at the number of closed shop units just outside the very centre of the town, still on the High St. I walked on the impressive Rows past the Tudor buildings. In view of The Cross (the original centre of the town where Earls would gather their supporters) two tramps were laid out on sleeping bags (it was 15.00).
I recently had some internal building completed and wanted two brass door handles. I looked on-line and just to check went to B&Q. I could get 2 delivered in a few days (i.e. not from China) for the same price as one at B&Q.
There is even the silliness of buying the same item much cheaper from the same shop on-line compared to in the actual shop. I heard recently that shop assistants now go on-line for you to get the better price!
I think that prestige shops such as Harrods, perhaps M&S etc. can command both an audience and a premium, most can't. Perhaps the exception is supermarkets where people with the time can see what they are buying and special offers.
I would be very selective in any investments in companies that truly relied on their non-virtual retail outlets!
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Mickey on 20/11/2017(UTC)
Mr Helpful
Posted: 20 November 2017 11:10:33(UTC)
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Captain Slugwash;53414 wrote:

I am an internet shopper 9 times out of 10, and I see a limited future for the sector, and indeed retail REITs.
:)


Difficult picking our way through Real Estate Investments today.
The natural reaction to the on-line advance is to avoid retail entirely, e.g. (HMSO) Hammerson.

Quite interesting then to note (NRR) New River Retail, are redeveloping at least one of their retail complexes into mixed use, residential + offices + retail.
This may be the way forward for town centres but such redevelopment might be quite expensive while ongoing?
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North Star on 20/11/2017(UTC)
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