Roger, Wilko, Over And Out

Like many people (well amongst the older population) in the UK, I was saddened by the news that general hardware store (and a bit of everything else as well .... that was part of it problem), Wilko was going in to administration prior to probable closure.

Wilko In Administration

The news doesn't look good, as they said that they risked running out of money to pay the bills last Friday .... So the chances are pretty high that it will not be saved (at least not in its current form).

 

In which case it will join the ever growing list of high street 'retail giants' who have gone under. Paperchase, Woolworth's, and Debenhams all gone ... with Wilko, and probably a few more, to follow. Now, in truth, Wilko wasn't always price competitive with rivals such as B&M Bargains, and the fast changing Poundland, as it had fallen in to the Woolworths trap of selling everything, but not always at the best price. However, it had a place and perhaps with some refocusing could have survived but it was also competing against a trend that threatens all high street stores.

Yes, these closures are really caused by the change in our shopping habits, after the rise of Internet shopping .... a fact accelerated by the Covid lockdowns (an act that though taken with the best of intentions at the time - but which many are suggesting was not that effective medically, and which definitely damaged our economy immeasurably).

What's really depressing about this, is the potential loss of local jobs in the 300 communities (12,500 jobs in all) where Wilko had stores. These shop jobs losses often impact women more than men, which makes their loss even more damaging, at a time when many families are already struggling with the cost of living crisis.

Amazon, eBay etc don't pay anything like the taxes that the high street shops provided (and certainly not the local business rates that councils benefit from) to the UK economy. They also only employ a fraction of the people that the high street shops do.

One day we may regret not evening the playing fields out when Internet shopping first started. A 'community support tax' on their retail turnover, to fund a reduction in tax and business rates on retail outlets in the UK might have saved a lot of jobs.

 

Update on 31/08/2023: Reported that a rescue bid has fallen though with job losses now expected  .... sad.

Update on 12/09/2023: Final chance at rescue failed - all stores closing over next few weeks. My local shop has nothing left on shelves. Some of the staff taking shelves down were near to tears. Friends and work colleagues to be parted. Unemployment, financial hardship and pension worries .... the human cost of these large collapses are huge. 

Last Update: Some of the sores are re-opening under the Wilko name, while others are now Poundland's ... the majority remain closed.