Massive job cuts at Dion Wired

[Lupus]

Weird, I see completely the opposite in my area... the local mall has just undergone a MASSIVE revamp and all the stores are occupied, all the petrol stations are neat and tidy and a few of them have had a revamp in the last few years so are nice and modern. 2 massive manufacturer dealerships have been built in the last 4 years, there are at least 3 large construction sites for office/store type setups... Granted the municipal stuff is a fsckup, but in the private sector money is still being spent hand over fist on large projects and revamps.

I don't disagree that there is a decline (its evident everywhere) but I think in some ways places like MassMart are their own worst enemies, their pricing strategy should be looked at, rather take a smaller margin to shift more product. The optimist in me (its a small part) hopes that what is happening will see a re-alignment of the way retail approaches pricing in this country.

Even with frequent power outages my area is seeing growth, I think Raptor is just in an area that's had it's time and is on the decline.

 

[Heisenborg]

This Massmart story is just the tip of the iceberg and deserves and in-depth analysis about the general collapse of the country from a goods & services point-of-view.
It's a complete collapse that has now finally reached our doorsteps, and it seems to come in waves.

I've been living in the same area for more than 10 years and the last 15 months have been nothing but shocking in it's decline, the decline of almost everything. Even the petrol stations look like they haven't had upkeep and maintenance done in decades.

I took a drive to some of the bigger malls and stores in the area this weekend, places I haven't been to in long time. What I saw had me floored. It's only the grocery stores in the area I frequent that seem to plod along, their decay seemingly hedged against the fact that they're the last places people can't really do without...

Pretty much every retail store looks like it's either in complete shutdown or soon will be. Even the ones that are still decent are almost devoid of customers, especially Massmart and other similar shops... and some of the clothing shops (not surprisingly though, R500 for a pair of cheap chinese three-quarter pants with an adidas stripe on it? Go get f**ed).

The end is nigh, indeed.
I predict that online shops will be the go-to place for most people for the time being, but those will also start to shut down as the middle and upper class flee to release themselves of the burden that is being a South African. I won't be surprised if many of the best online retail sites are already looking into whether they can move their business model overseas.

BS

Take a walk in the glenn mall in the south. You cant even move. Shopping my just be centralizing a bit, but retail is fine still.

Agreed on the rest. Roads and everything else are falling apart

 

[Gazg]

Eish said news, but Dion Wired were way overpriced to start with

 

[Lupus]

BS

Take a walk in the glenn mall in the south. You cant even move. Shopping my just be centralizing a bit, but retail is fine still.

Agreed on the rest. Roads and everything else are falling apart

That's because there is only the Glen, Mall of the South and maybe Southgate for large malls in the South.
Compared to the North/West side where there is a big mall almost everywhere.

 

[Milano]

Weird, I see completely the opposite in my area... the local mall has just undergone a MASSIVE revamp and all the stores are occupied, all the petrol stations are neat and tidy and a few of them have had a revamp in the last few years so are nice and modern. 2 massive manufacturer dealerships have been built in the last 4 years, there are at least 3 large construction sites for office/store type setups... Granted the municipal stuff is a fsckup, but in the private sector money is still being spent hand over fist on large projects and revamps.

I don't disagree that there is a decline (its evident everywhere) but I think in some ways places like MassMart are their own worst enemies, their pricing strategy should be looked at, rather take a smaller margin to shift more product. The optimist in me (its a small part) hopes that what is happening will see a re-alignment of the way retail approaches pricing in this country.

That must be one of the few shopping malls in SA with 100% floor space occupancy. Which mall is that btw?

 

[*SynergyX*]

1. Online will kill retail over time - its a given

2. Lets see us avoid a recession... Dread it. Run from it. Destiny arrives all the same.

 

[ToxicBunny]

That must be one of the few shopping malls in SA with 100% floor space occupancy. Which mall is that btw?

Pinecrest.... Last time I was there a few weeks ago I didn't see any unoccupied shops....

Granted I didn't walk the ENTIRE mall, but I didn't see any empty shops, and the mall was busy (as it generally is).

 

[NightShift]

This Massmart story is just the tip of the iceberg and deserves and in-depth analysis about the general collapse of the country from a goods & services point-of-view.
It's a complete collapse that has now finally reached our doorsteps, and it seems to come in waves.

where exactly do you live?? Can't say I've seen the same in my area - new mall popping up, decently occupied in a growing neighborhood. Stores are doing alright overall. It's a tough economy we're living in and the consumer has less bucks in their pocket than I can remember, which means it's going to be difficult for retailers to maintain the performance of years gone by, and hence we see this big focus on "optimisation" - it's honestly going to be a huge driver across retail and other industries this year and for years to come, because you can't rely on sales anymore to prop up that bottom line, so to make decent % you have to finally start cutting the fat. And lets be honest alot of our big corporates are not very lean and are carrying a load of dead-weight. Interesting times ahead.

 

[Milano]

Pinecrest.... Last time I was there a few weeks ago I didn't see any unoccupied shops....

Granted I didn't walk the ENTIRE mall, but I didn't see any empty shops, and the mall was busy (as it generally is).

It must be well managed. Most malls prefer to keep rentals sky high and sit with empty stores. Perhaps Pinecrest took a more negotiable rental approach. Empty spaces kill malls so they really need to all be more realistic about rentals in this economy.

 

[Bryn]

Retail is dead in SA and has been effectively dead for a while in our sclerotic economy.

Correct. It's tragic, and every word that comes out of the ANC makes things worse.

BS

Take a walk in the glenn mall in the south. You cant even move. Shopping my just be centralizing a bit, but retail is fine still.

Agreed on the rest. Roads and everything else are falling apart

You're mistaken. Manufacturers are closing one by one or moving abroad. Remaining in this country is extremely challenging for those still here. And it all stems from our biggest retailers, for a while already, massively scaling back their orders. And a fat chunk of the few manufacturers that don't get hit too hard by reduced order quantities instead get hit by being forced to get close to the prices offered by overseas sweatshops. It's inconceivable that retail is healthy when this behaviour has become the new norm.

And we've seen major retailers follow through on their threats and replace quality local products with dogs**t quality imported stuff. I won't name any names, but I'm sure most people here don't need to think too hard to recall the last time they went shopping for clothes, shoes, homeware etc. and wondered why most of the stuff was crap.

 

[ToxicBunny]

It must be well managed. Most malls prefer to keep rentals sky high and sit with empty stores. Perhaps Pinecrest took a more negotiable rental approach. Empty spaces kill malls so they really need to all be more realistic about rentals in this economy.

Well its just finished a R200m revamp, so I think its largely about keeping the place looking full and busy for the first year.

 

[RaptorSA]

where exactly do you live?? Can't say I've seen the same in my area - new mall popping up, decently occupied in a growing neighborhood. Stores are doing alright overall. It's a tough economy we're living in and the consumer has less bucks in their pocket than I can remember, which means it's going to be difficult for retailers to maintain the performance of years gone by, and hence we see this big focus on "optimisation" - it's honestly going to be a huge driver across retail and other industries this year and for years to come, because you can't rely on sales anymore to prop up that bottom line, so to make decent % you have to finally start cutting the fat. And lets be honest alot of our big corporates are not very lean and are carrying a load of dead-weight. Interesting times ahead.

This is mostly in the Randburg area, north of the N1.

 

[Lupus]

This is mostly in the Randburg area, north of the N1.

Sounds like it's possibly the CBD and surrounds which has been on the general decline. Though Ferndale on Republic has replaced the old derelict Brightwater commons, Cresta is in a dodgish area but the shopping mall is fine, Northgate isn't the same as it used to be, that one I will say feels dodge.

 

[RaptorSA]

BS
Take a walk in the glenn mall in the south. You cant even move. Shopping my just be centralizing a bit, but retail is fine still.
Agreed on the rest. Roads and everything else are falling apart

Obviously there will be variance on this subject, but the retail numbers are pretty clear that we're in a decline so it goes without saying that more people's experience, in general, will probably match mine more closely.

 

[dgcarter]

Not surprised. Really needed to go to the hardware store on Sunday. Chamberlains had closed already, builders was however open until 4pm. I decided to leave it for another day...
Haven't enjoyed my shopping experience at Massmart stores in a long while.
Also, Dion Wired was always WAY overpriced, the only time I went to one of those stores was to physically see a product which I went and bought cheaper online.

 

[Gaz{M}]

Why have both Makro and Game in the portfolio, when essentially they are the same store competing for the same customers? Game is always a bit depressing inside. Empty and the range sucks. But sometimes you can get things cheaper there than Makro.

For electronics, I agree that online will kill physical stores mostly (the margins on TV's just aren't there to sustain a shop). But think about clothing - online buying is hit and miss and it's just better to visit a store and try stuff on.

 

[^^vampire^^]

I've never understood how Dion Wired managed to open in the first place. Their prices have almost always been consistently above any other retail store around. You guys are correct about Game too. It's always been depressing and bleak and I think the only time I actively went into one was when I was bored at Cresta otherwise it would never get my foot traffic.

I think the one thing in common in these and many other stores is there are tons of sales people everywhere doing very little to sell anything and so are basically dead weight. There are the exceptions but I feel that just like many other stores in SA the employees are there to collect a cheque at the end of the month and little else. Perhaps this is MassMart cleaning up the mess and saving cash at the same time.

 

[krycor]

It must be well managed. Most malls prefer to keep rentals sky high and sit with empty stores. Perhaps Pinecrest took a more negotiable rental approach. Empty spaces kill malls so they really need to all be more realistic about rentals in this economy.

This.. a lot of malls have or are going through upgrade cycles which some passing it directly down. This in turn gets passed down to consumers too and you end up with either stores closing due to price killing their consumer base.

Another issue is the new trend of living globally in an e-commerce world does not revolve around mall living anymore. SA is only saved by this partly and that checkers faster delivery system (Sixty60) might be the 1st nail in the coffin.

Right now.. is I’d say we go to mini-malls (local suburban) one for weekly groceries and 2-3x for gym. Sometimes spouse goes for boutique stuff like hairdresser, that skin care place.. and that’s about it. Only other times is for a specific arbitrary need like where u want to see things in store.

I reckon malls are dying because technology means you don’t need to go there for stores and you can see how entertainment & eateries/restaurant sections have grown as that’s why we go sometimes.. (because there is uberEats, home cooking and Netflix/Showmax/Amazon and chill).

So yah.. I reckon mall death is coming to SA too. Don’t forget.. mall = risk in a SA context vs hijacking, theft, heists etc which bumps costs. so why would u go to a large mall? Vs a restaurant area or mini-malls some of which are up to 50% restaurants & entertainment.

 

[*SynergyX*]

I've never understood how Dion Wired managed to open in the first place. Their prices have almost always been consistently above any other retail store around. You guys are correct about Game too. It's always been depressing and bleak and I think the only time I actively went into one was when I was bored at Cresta otherwise it would never get my foot traffic.

I think the one thing in common in these and many other stores is there are tons of sales people everywhere doing very little to sell anything and so are basically dead weight. There are the exceptions but I feel that just like many other stores in SA the employees are there to collect a cheque at the end of the month and little else. Perhaps this is MassMart cleaning up the mess and saving cash at the same time.

lol try it on in store and buy it online -- online is cheaper 90% of the time