This is not a closing down sale

Post length: 203 words, almost 1 minute.

Woolworths' biggest ever saleDeloitte, the administrators called in to deal with the collapse of Woolworths, are claiming it’s not a closing down sale but to me it looked pretty terminal.  Like most people calling in to one of the chain’s 815 stores today, I was greeted by empty shelves and long queues.

While Deloitte are promising that the stores will all remain open until after Christmas, I’m not sure there will be much left to sell following the weekend.  Given that Woolworths’ problems began when they were unable to obtain credit insurance and so their suppliers were unwilling to give them credit, I don’t see how they will be able to re-stock.  Unless the Woolworths’ four distribution centres are very well stocked, or the intention is that this sale will provide a cash injection to allow the chain to get their delivery chain up and running again, I doubt they’ll find any suppliers willing to work with them.

One thing is certain – the sale has made people flood back into their stores.  I can’t help feel that if they had managed to get this many people in each shop before now they wouldn’t be in the mess they are in.

Posted on Friday 5th December, 2008 at 5:08 pm in Obiter dicta.
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