Comet, who are the UK’s second largest electrical retailer, may soon enter administration. They have had 2 years of poor trading, with the Christmas 2010 and 2011 periods being particularly bad. Online rivals are thought to be the main reason for the downturn. But why did Comet fail to leverage its brand to drive consumers onto its online store?
It is thought that if Comet does indeed enter administration all of its stores will close. Comet was sold off by Kingfisher Plc. a few years ago to a private investment company for just £1. The expected recovery never came.
Comet Stores in Essex
- Basildon – Miles Gray Road
- Benfleet – Hilldene Avenue
- Braintree Retail Park
- Chelmsford – Chelmer Village Retail Park
- Colchester – Tollgate Centre
- Harlow Retail Park
- Southend-on-Sea – Comet Way
Traditional Businesses Need to Move Online
Once again this highlights the need for traditional businesses to work on their online sales. Many are still relying on walk through traffic in high street stores and Christmas shoppers to make up the bulk of their sales.
Comet is one of the original out-of-town retailers and people are simply using these sites less today. Rather than shop out-of-town many people prefer to shop online.
Like Argos, JJB and Habitat, which have also announced closures of many high street stores in the last year, management continued to focus on the high street sales.
People are asking what went wrong. The answer is simple – Comet failed to move online. Comet had a great brand and could have developed a strong presence online but simply wasted an opportunity.
News source: Comet May Fall Into Administration