Zavvi into administration

gasteropod · Post by **gasteropod** » 24 Dec 2008, 16:00

It was shit anyway.

There are some things you can see coming a million miles off...

The latest blow to the high street has been struck today with news the zavvi chain (formerly Virgin Megastores) has gone into administration. No notice has been placed on the (rather dishevelled) site as yet but a message posted on the main page last week hinted all wasn't well:

"A message to our customers 17.12.2008. We apologise for the ongoing supply problems that mean we are temporarily unable to accept orders at zavvi.co.uk. Remember you can still shop at our 125 zavvi stores across the UK and Ireland, where we continue to have good stock availability."

Since then however things have obviously taken a further turn for the worse and more than 2,363 permanent staff and 1,052 temporary staff will find their turkey tasting rather more dry tomorrow. That said zavvi stores will continue trading for the meantime with administrators looking to find a buyer for all or part of the business.

In a statement founding partners Simon Douglas and Steve Peckham admitted "We have done all that is possible to keep the business trading, but the problems encountered with [supplier] EUK, and particularly its recent failure, have been too much for the business to cope with."

Sadly, as I mentioned at the top of this story, you didn't need to be a genius to see this coming. After all, when the planet's most famous entrepreneur decides to ditch something there's probably a good reason why. Add to that the fact what was the UK's largest independent entertainment retailer (like Woolworths) had only recently considered starting an online download service and its outdated business practices really do become all too apparent. Indeed, speaking about the zavvi sale in September 2007 I went so far as to declare:

"All kudos here to Sir Rich. High street music retailing has been dying a death in recent years and with online sales booming and Apple adding WiFi access to iTunes direct from its new iPod touch player and iPhone it is likely to fall further still. Of course Mr Douglas may believe he has a brave new vision to shake off this high street malaise, but I find myself siding with the former crazy balloonist on this one. Fine move Sir."

Sometimes it sucks to be right

Source: http://www.trustedreviews.com/multimedi ... tration/p1

IronMonkey · Post by **IronMonkey** » 24 Dec 2008, 16:22

Well it was only a matter of time.

bradavon · Post by **bradavon** » 24 Dec 2008, 18:01

It was shit and didn't exactly last long. Virgin only sold it not too long ago.

saltysam · Post by **saltysam** » 24 Dec 2008, 19:50

Fuck Brad you hated Woolies as well.any other stores in your line of fire

Markgway · Post by **Markgway** » 24 Dec 2008, 19:54

Yeah, well that's one less in-store option for consumers. Two if you count Woolworths. See nothing to gloat about. Pretty soon we can order our entire lives on-line and never need to leave the comfort of our own homes. Wouldn't it be swell?

Yi-Long · Post by **Yi-Long** » 24 Dec 2008, 21:34

Maybe these shops are just pricing themselfs out of the market.

bradavon · Post by **bradavon** » 24 Dec 2008, 22:21

Zavvi weren't too bad, they're nothing compared to the rubbish that was Woolies. I'm not gloating and am just saying it how it is.

Yi says it all really. Woolies didn't move with the times, sold everything you can imagine but virtually nothing of quality, they specialised in nothing. There prices can no longer compete.

HMV are example of how to move with the times, their online prices are much better than they used to be and they have a proper online presence. Woolies was a joke.

As usual Mark is over-dramatising things. People will always continue to meet face to face. There will also always be a market for a bricks and mortar shop. The little interesting specialised shops you cannot beat.

I only every buy clothes in shops. I want to try them on before buying. You just cannot do this online.

Yi-Long · Post by **Yi-Long** » 24 Dec 2008, 23:12

There are lots of shops I'd love to see go out of business btw. Especially those really pretentious extremely high-priced stored who sell stuff for large chunks of money and they hardly have anything in the store (like every pair of shoes or every hand bag has it's own 'platform', and that's pretty much it, with snobby stuck up 40 year old women with dyed hair who work there looking down on you).

Also, I've always been a huge comicbook/graphic novel fan, but a few years ago most comicbookstores were WAY overpriced (before people started ordering their comics themselfs through the internet so they wouldnt be scammed by the local comicbookstore), and it doesnt help that pretty much every comicbook-store owner seems to be a grade-A asshole, although ofcourse there are exceptions (luckily), so some of those stores I wouldnt miss either.

Pretty much every store that really overcharges their customers I hope goes down. I hate it. That's not how I would like to treat people, and it's not how I like to be treated either.

The internet is great. Just order it online! Ordered Midnight Club LA (360) for 14 euro, while it's still 55 euro here in the shops(!)

bradavon · Post by **bradavon** » 25 Dec 2008, 00:33

Yi has a point. If a store insists in ripping us off, they've only got their selves to blame.

gasteropod · Post by **gasteropod** » 25 Dec 2008, 01:06

bradavon wrote:HMV are example of how to move with the times, their online prices are much better than they used to be and they have a proper online presence.

Agreed, I use HMV online all the time. Zavvi didn't even compete with it on the high street, never mind online, so no great loss.

Markgway · Post by **Markgway** » 25 Dec 2008, 13:05

The overheads on running a consumer-based store are significantly higher than those for an on-line business. Prices are cheaper on-line because they can afford to be.

bradavon · Post by **bradavon** » 25 Dec 2008, 13:29

That's partly true for sure but they also use that excuse way to regularly. HMV in-store can cost a fortune, their BDs are a joke.

Yi-Long · Post by **Yi-Long** » 25 Dec 2008, 13:37

Markgway wrote:The overheads on running a consumer-based store are significantly higher than those for an on-line business. Prices are cheaper on-line because they can afford to be.

Wel... if it's just a couple of bucks more expensive when buying in a store instead of online, I would probably just buy them in a local store (if the product is still sealed, cause some stores also open all their products so they can put the CD/DVD/BR/game behind the counter, and all the cases look like shit). But like I said, Midnight Club LA sealed for 14 euro from play-asia, or 55 euro in a local store: no contest.

The local Free Record Shop is selling the GTA4 strategy-guide for 20 bucks. Online it's about 11 bucks orso at play.com.

luckystars · Post by **luckystars** » 25 Dec 2008, 22:03

Any Zavvi bargains in-store now?

bradavon · Post by **bradavon** » 25 Dec 2008, 23:09

They have stores? Seriously I didn't know that.

Any deals online?

IronMonkey · Post by **IronMonkey** » 25 Dec 2008, 23:34

bradavon wrote:They have stores? Seriously I didn't know that.

WTH?!

Markgway · Post by **Markgway** » 26 Dec 2008, 06:16

luckystars wrote:Any Zavvi bargains in-store now?

Their clearout (which might literaly be a clearout now) started on the 23rd.

Lots of stuff at decent prices. Depends what you're looking for...?

Markgway · Post by **Markgway** » 26 Dec 2008, 06:18

bradavon wrote:That's partly true for sure but they also use that excuse way to regularly. HMV in-store can cost a fortune, their BDs are a joke.

It's usually just a £1 or £2 extra in-store. Remember they have to pay for high street property rentals and thousands of staff.

gasteropod · Post by **gasteropod** » 26 Dec 2008, 12:08

bradavon wrote:They have stores? Seriously I didn't know that.

How you didn't know that Zavvi replaced Virgin Megastores is beyond me lol.

bradavon · Post by **bradavon** » 26 Dec 2008, 12:33

Markgway wrote:It's usually just a £1 or £2 extra in-store.

You're wait out on BDs. They average £20-30.

DVDs are much better than they used to be, although can still suck. I bought my brother Apocalypse Now SE for Xmas. It was £9.99 in store (good price) and £6.99 online (even better price). As I had no time to order online I went for the in store price.

They can use that "staff to pay" excuse as much as they like, the prices still don't add up. Not that I'd care if they did, that's their business not mine.

gasteropod wrote:How you didn't know that Zavvi replaced Virgin Megastores is beyond me lol.

I was asking about their stores not who they replaced

.

Seriously I've ever seen one Virgin Mega Store in London. There's none anywhere near me. I think their "maybe" one in Bristol but I've never seen it.

Markgway · Post by **Markgway** » 26 Dec 2008, 14:51

bradavon wrote:You're wait out on BDs. They average £20-30.

Most are available at 2 for £30 in HMV or 2 for £25 in Zavvi.

Seriously I've ever seen one Virgin Mega Store in London.

I live waaaay up north and even I've been in a London Virgin Megastore.

bradavon · Post by **bradavon** » 26 Dec 2008, 16:11

Markgway wrote:Most are available at 2 for £30 in HMV or 2 for £25 in Zavvi.

£15 a BD, WOW! What a bargain. £12.50 isn't too bad though. I'm guessing these are Sales prices, meaning they won't last so aren't really a good example anyway.

EDIT: When HMV can charge £3 for a DVD, home come all they can offer for BDs is two for £30? Answer = It's a joke and has nothing to do with higher running costs.

Markgway wrote:I live waaaay up north and even I've been in a London Virgin Megastore.

That makes two people then.

saltysam · Post by **saltysam** » 26 Dec 2008, 20:54

bradavon wrote:

Seriously I've ever seen one Virgin Mega Store in London..

there was one,a massive one at the corner of Oxford Street,Tottenham Court Road end for donkeys years.don't know if it went and turned into Zavvi,haven't been to London for around 5 years now.

luckystars · Post by **luckystars** » 27 Dec 2008, 01:06

Yeah still there. Guess it'll be gone soon

Markgway · Post by **Markgway** » 27 Dec 2008, 08:39

There was also one just along from Piccadilly Circus.

Actually there were two on Oxford Street - one at each end.