Comet

It looks as if the day dawns for Comet. The company is very likely to enter administration very soon. This is unsurprising. The company is clearly in trouble so what manufacturer is going to sell their products to Comet and hope they don't collapse before the bill is paid. They are demanding payment up front.

But for customers too, why buy from a company that might not be there tomorrow? Such are the problems facing a company in such dire straits and it helps accelerate the end.

So, is Comet a viable company? If you have the readies to buy it and keep it going, could you lead it back to profits, even greatness? Well, the first question to ask is, what niche does it fill? And the answer is none. What does it do that is unique? Nothing. Over the years the electrical retailer as been vanishing. Shops that sell TV's to vacuums, fridges to toasters, stereo's and light bulbs are just not viable, there were too many.

To address this trend Comet did nothing. To be fair, Curry's didn't do much either, but they had a broader skill set if you like, with the PC World brand. Even their choice of colour scheme was wrong, orange for goodness sake. The one near me is next to a Halfords and I kinda subconsciously link the two.

Is there anything they could do? Well, the only way they could change in reality is if they went for an ultra cheap approach. If there is any way they could form partnerships and deals with suppliers to produce very much cheaper kit, washing machines, fridges and Hoovers then maybe, just maybe. The problem would be, the squeeze would have to be on production costs and margins, the quality still has to be there to some degree. Otherwise the death knell would be a new Ratner reputation and crippling warranty claims.

Comet it seems will go and rivals will hope it frees up some market for them. A little more help for Curry's but who would replace shopping at Comet for Argos?