Just received a letter anouncing Roundhay (Leeds) to close on 14th June. Rather sad I feel, it is a great store and always very helpful.

   Jonnie

Shopping Centres don't tend to sap away from B&O's business - bear in mind that B&O dealers are usually slightly off the beaten track because they know that at least a large proportion of their business is going to come from people who are specifically looking for a B&O system, or have a B&O system in mind.

Alex:

Shopping Centres don't tend to sap away from B&O's business - bear in mind that B&O dealers are usually slightly off the beaten track because they know that at least a large proportion of their business is going to come from people who are specifically looking for a B&O system, or have a B&O system in mind.

Err..forgive me Alex, but I think you need to know how the land lies in Leeds before you make such assumptions. Roundhay is a well to do area, but it is absolutely miles out on the ring road should anyone try to access it from any other side of the city than the north. Traffic congestion on the ring road at any time other than approx 00:00 to 05:00 is appalling to boot. That, plus the fact that the city centre store opens on Sundays probably has something to do with it. Don't forget that we're talking about the 'Knightsbridge of the north' here, and I imagine the city centre store does very well out of well off punters shopping in the nearby designer stores popping in and blowing a few grand on a new system. In fact, that's probably why the store - which is run by a company that has franchises in Harrogate and York (more than a few bob up there) - was opened in such a prime position in the first place.

The major part of the problem is the general very sharp downturn of trade in many luxury goods.

People in general are more worried about how they are going to pay the shopping and fuel bills and will put off buying lifes luxuries.

j0hnbarker:

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Err..forgive me Alex, but I think you need to know how the land lies in Leeds before you make such assumptions. Roundhay is a well to do area, but it is absolutely miles out on the ring road should anyone try to access it from any other side of the city than the north. Traffic congestion on the ring road at any time other than approx 00:00 to 05:00 is appalling to boot. That, plus the fact that the city centre store opens on Sundays probably has something to do with it. Don't forget that we're talking about the 'Knightsbridge of the north' here, and I imagine the city centre store does very well out of well off punters shopping in the nearby designer stores popping in and blowing a few grand on a new system. In fact, that's probably why the store - which is run by a company that has franchises in Harrogate and York (more than a few bob up there) - was opened in such a prime position in the first place.

Point taken - I don't know Leeds that well.

Sadly I can see this being the first of a few closures.

I am hoping that I won't provoke another repeat  of the B&O strategy thread when I say that the luxury goods market is going to be a challenging one for the next couple of years or so.

Simon

joeyboygolf:

The major part of the problem is the general very sharp downturn of trade in many luxury goods.

Absolutely incorrect. In the Sunday Times there was a big report on this on how 'ultra luxury' brands are bucking the downturn, with wealthy clients spending in a way that laughs at the so-called downturn. Sales are up on many ultra luxury products during the first half of 2008.

It depends how you see B&O. Unfortunately they are becoming part of this 'ultra luxury' market and some stores are going to buck the trend whereas others, who can't target people who buy from products in this brand, will struggle.

moxxey:

joeyboygolf:

The major part of the problem is the general very sharp downturn of trade in many luxury goods.

Absolutely incorrect. In the Sunday Times there was a big report on this on how 'ultra luxury' brands are bucking the downturn, with wealthy clients spending in a way that laughs at the so-called downturn. Sales are up on many ultra luxury products during the first half of 2008.

It depends how you see B&O. Unfortunately they are becoming part of this 'ultra luxury' market and some stores are going to buck the trend whereas others, who can't target people who buy from products in this brand, will struggle.

Assuming what you say is correct Moxxey, it's easy to see why of the two B&O stores within 4 miles of each other in Leeds, it's the one out of the city centre in the suburbs that is closing. Lots of people are still spending money in Leeds on luxury items, and I guess the store nearest to this activity is going to feel the benefit.

There is a theory that in a credit-crunch such as the one happening right now, the upper-class are the ones who are not really affected. However, bear in mind that under Torben, more products were released which were aimed at the lower-end of the 'ultra-luxury' market - namely the BeoVision 8.

My theory is that rich people become slightly less rich in a recession, and normal people become poor..

It's the normal people that suffer..

Lee

John's absolutely right - the store is very difficult to find unless you know Leeds very well (and not that easy even if you do!).

A real shame as it is a cracking store.

Chris.

Medogsfat:

John's absolutely right - the store is very difficult to find unless you know Leeds very well (and not that easy even if you do!).

A real shame as it is a cracking store.

Chris.

A real shame. They were very helpful last year when I tried to get some packaging for my Pentas when I moved house. Even though they couldn't get any in the end, I was really impressed with their service.

For us lot in west or south west Leeds they were just too far out to make a quick trip to. I could have got to the Sheffield store in the same time if I wanted to go early evening after work.

9 LEE:

My theory is that rich people become slightly less rich in a recession, and normal people become poor..

It's the normal people that suffer..

Lee

Ok , Economics class is over, Lee has just ruined it for everybody, buy giving the answer to all the test questions!

Roger 

R Patton:

9 LEE:

My theory is that rich people become slightly less rich in a recession, and normal people become poor..

It's the normal people that suffer..

Lee

Ok , Economics class is over, Lee has just ruined it for everybody, buy giving the answer to all the test questions!

Roger 

I've always had this uncanny knack of being able to state the obvious.. This amazing talent has got me nowhere too!

Alex:

There is a theory that in a credit-crunch such as the one happening right now, the upper-class..

It's not necessarily a class thing here though, Alex. Many of the ultra luxury clientèle come from new money, such as oil, rather than land or traditional wealth. They're the type of people who join the supercar clubs, are on the Soho House client list and so on. You don't see upper class gentry types at Babington House - it's all new money.

j0hnbarker:

Assuming what you say is correct Moxxey, it's easy to see why of the two B&O stores within 4 miles of each other in Leeds, it's the one out of the city centre in the suburbs that is closing. Lots of people are still spending money in Leeds on luxury items, and I guess the store nearest to this activity is going to feel the benefit.

Correct. A little like the Yarm (North Yorkshire) store, too. Absolutely no-one ever in there when I visit, but they are very profitable from all the premiership footballers and others who spend lots of money in the store. Yarm is a very small town, but has a B&O store that's been there for years.

moxxey:

joeyboygolf:

The major part of the problem is the general very sharp downturn of trade in many luxury goods.

Absolutely incorrect. In the Sunday Times there was a big report on this on how 'ultra luxury' brands are bucking the downturn, with wealthy clients spending in a way that laughs at the so-called downturn. Sales are up on many ultra luxury products during the first half of 2008.

It depends how you see B&O. Unfortunately they are becoming part of this 'ultra luxury' market and some stores are going to buck the trend whereas others, who can't target people who buy from products in this brand, will struggle.

I wonder why B&O havent aqcuired this store?? was it because they failed to adhere to company policy!!

B&O isnt in a downturn- the ultra high end! but it would seem the stores are- funny that

I do think that the ultra-rich are slowing their spending, for example:

 http://www.nytimes.com/2008/06/01/fashion/01rich.html?em&ex=1212552000&en=d3fe3d03622d334b&ei=5087%0A

However, I have not considered B&O to be an ultra-luxury brand. I see B&O as more of a "design-centric" brand where it just so happens that the cost of good design is significantly more than that of designs offered by the mainstream. In the end I have found that a B&O purchase has more longevity than a "typical" ultra luxury purchase where "style" (not design) reigns. When a B&O product is out of "style" it still possesses good design (e.g. Beosound 9000), something that is not common. Very few producers sell the same (high priced) product for 15-20 years; there exist a few examples (e.g. particular models of watches from PP, BP..) but not many.

As far as the closing of B&O stores, I should think that the details of the specific financial parameters unique to each location and owner may play a larger role than the number of clients coming through the door. In some instances, sales could increase and still not overcome a disadvantaged overhead position. Not having visibility into such matters makes general statements about the correlation between a particular B&O store closing and lower spending by "typical" B&O customers unfounded.

Very sad indeed - I've had nothing but excellent service from the team at Roundhay - I'll miss them greatly.  I'd just got off the 'phone from them this morning (Beo 5 arrived!) and the same letter dropped through my door...

I've only been in the Leeds City Centre store once, on my lunch from work,  and it wasn't a particularly pleasant experience.  I'm a contractor working in Leeds at the moment, and my current project affords that I wear what I like; jeans and t-shirts in the main.  It felt like I was being judged on my appearance, and I left.  Never had that at Roundhay...

:(

355f:

B&O isnt in a downturn- the ultra high end! but it would seem the stores are- funny that

Again, you're too pessimistic. Just as one Leeds store closes, it doesn't mean everything is doom and gloom - how many ultra luxury brands have more than one store in one town (area)? Do Jaguar? Do Armazi Collezioni? Prada stores in Roundhay?

You can't be both ultra high end and have multiple stores as if you are a regular high street brand. B&O have over committed to the UK market. I would safely say we'll see other stores close, too, for this reason.

Puncher:

Is the Harrogate store still open? - when I was in town at the end of Feb. it looked liked it had closed down!

It's still open. The store is/was getting a revamp, from what I was told when I was last at the store (at Christmas). I'm sure that's completed by now though!