Deathwatch? Instore and Threshers could be in big trouble

30 June 2009

Throughout the recession, there’s been a belief that budget stores have continued to thrive as punters look to make their money go further. Indeed, this writer recently had a dream where the naked CEO of Poundland danced drunkenly on a grave that had ‘Debenhams’ etched into the headstone. But that’s another story.

That belief that budget stores are recession-proof has been exposed as a myth today with the announcement that Instore have doubled their losses to £5.8m in the year up to February 28th, more than doubling the previous year’s loss of £2.2m.

But wait a minute – maybe budget is best after all. Instore, of course, own the Poundstretcher brand, and the Instore shops were seen as an attempt to add a veneer of sophistication to a super-affordable offering. And now it seems that Instore are looking to convert many of their stores to the Poundstretcher brand, with ‘pile ‘em high and sell ’em cheap’ possibly the way forward. If it doesn’t work out, it could be curtains for both names.

Elsewhere, crap off licence chain Thresher are continuing to edge towards the retail exit door. It’s been reported that some franchisees are only receiving around 55-60 per cent of the stock they’ve ordered over the past two months.

This worrying news comes after the company’s owner, First Quench Group, issued a “going concern” warning on Companies House, outlining a “material uncertainty” casting doubt on its ability to continue trading in its current form. Between May 2007 and June 2008, the group’s pre-tax losses were £30m.

Could it be last orders for Thresher soon then? Actually, that doesn’t make any sense really, because although they sell booze, they’re not a pub. Sorry.

TOPICS:   High Street News   Economy

12 comments

  • bobby
    Poundstrecher just doesn't have it's stratergy right. There are companies like B&M, Homebargins and poundland who have it right at the moment. Poundstretcher and instore seem to sell stuff you can find in supermarkets at the same price how do they expect to compete.
  • Brian
    Hi, my name is Brian. I would NEVER shop in Poundland because i do no wish to bump into Council house, single parent, benefit cheating scum. But, i would happily spend a few £'s in Poundstretcher.
  • mike
    Brian...fuck off
  • Jeezey
    Ah Threshers; masters of the 3 for 2 and massive-money-off coupon con tricks. Tattie bye.
  • Brian
    Posted by mike | June 30th, 2009 at 9:13 pm "Brian…fuck off" Hey, buddy, guess what? You're the type of worthless, low life i try to avoid at retail establishments like "Poundland"
  • Jim C.
    Is it really necessary to describe Threshers as a "crap" off licence chain?
  • Andy D.
    Yes. Yes it is.
  • mike
    oh Brian..Brian...Brian....stick to poundstretcher...you may meet more narrow-minded people like yourself....
  • Craig
    If you're looking to avoid the typical dole feeding chav then may I suggest also avoiding such places as Tesco? :P
  • The B.
    Agree with the Tesco comment, never been in a pounbd shop so can't comment, but let's be honest, Thresher are crap, at least Oddbins are specialised and so have a bit of a niche, why go to Threshers when you can go to Sainsburys, Waitrose, Majestic or Oddbins who'll have a wider choice (in stock too) for better prices.
  • The B.
    Oops, pound shop.
  • G R.
    Its survival of the fittest at the moment! All the rubbish is being wiped out... The evolution of shops!! Anyway I noticed my local instore closed down recently!

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