The Health Store winding down operations.

BusGuy

So, another one bites the dust, with The Health Store closing all of the stores in the ROI, as well as some GMC stores in the Leinster area. Any reactions? So much closures in the past year, including Argos, The Organic Shop in Dundrum, Gamestop, and many more, with Holland & Barrett likely to become the next threat.

Never heard of them so guessing they're a regional/local business but H&B only announced continued expansion and investment in Ireland so sure they'll happly fill the gap.

https://www.rte.ie/news/business/2024/0513/1448862-holland-and-barrett/

gipi

Gone into liquidation, it seems

https://www.breakingnews.ie/ireland/provisional-liquidators-appointed-to-firms-operating-11-health-food-stores-1648294.html

Changing shopping patterns are driving the loss of high street businesses, is it a cause for concern - I doubt it.

Hande hoche!

On the other hand, we have Wendy's opening up. The overall health of the population might change a smidge…

JVince

https://www.boards.ie/discussion/2058359511/the-health-store-winding-down-operations

Argos was always going to close after Sainsbury's bought them. Zero investment.

Very niche stores like the organic shop or those refill shops that were around for a short period, never work as people simply don't have the time to divert to their stores.

Only one of The Health Store shops was under the GNC banner (BlackRock). Many of the others were in high rent locations and the expansion of Holland and Barrett into Tesco didn't help.

On top of that their prices were very high and people just won't over pay these days.

But the failure was very much their failure rather than anything else

BusGuy

What about VAT? I went into the health store today, and after all my purchases, it ended up vat percentage being as 13.5%. I just feel like the options we have of where to shop are getting smaller, if these stores decide to put their prices high.

JVince

https://www.boards.ie/discussion/comment/122379917#Comment_122379917

What about vat?

It applies at the reduced rate of 13.5% not the standard rate of 23%

Similar in the UK, but reduced rate there is 9%

Huge choice of where to shop. ANY EU based online store and plenty of local choice including larger boots stores and an expanded overpriced Holland and Barrett.

odyssey06

https://www.boards.ie/discussion/comment/122379997#Comment_122379997

They are overpriced but most of the time when purchasing from H&B, if you can time it right, you can get some sort of deal with big discounts.

BusGuy

https://www.boards.ie/discussion/comment/122379997#Comment_122379997

The reason stores are closing is due to Amazon and all these online retailers, and the same situation goes for the UK.

Viscount Aggro

They are closing because they are trapped into high rents, and they are too expensive. A lot of customers are buying aspirational products.. look at me, I'm doing really well.

BusGuy

https://www.boards.ie/discussion/comment/122380083#Comment_122380083

Yeah, you got a point there, but still, if you won't get good sales, how would you pay the rent tho? Also, I never saw a The Health Store ad before, so they could've used some money on an ad period for 1 week or so, also, Presto Pizza in Dundrum also closed this year, with no reason at all, apart from someone posting on Twitter the day after it's closed that it's the VAT rate. I really liked that pizza place, I really don't like the way this is going, so much people used to go there.

JVince

https://www.boards.ie/discussion/comment/122380067#Comment_122380067

That's retail these days. Retail changes constantly.

In the 80's catalogue shopping was 15% of UK retail sales.

You will have retail names disappear every year. You will have new retail names every year too.

Who thought 5 years ago that Jysk would have 20 or so shops here?

Just because one small group of overpriced specialist stores closes, does not mean the sector has issues.

BusGuy

https://www.boards.ie/discussion/comment/122380183#Comment_122380183

Yeah, but still, I'm not saying that the sector has issues, it's the Irish Government, cause if there was no high VAT rate, so much shops would've stayed open, but it looks like this is not the case.

JVince

https://www.boards.ie/discussion/comment/122381161#Comment_122381161

It's reduced rate vat. Some items were previously 0% but became variable.

And likewise some items were previously 23% and had their rate dropped to 13.5%

They were in high rent locations and any drop in sales was going to hurt badly.

Blanchardstown store had a rent of 160,000 service charges of almost 20,000 and rates at similar level.

That's €4k a week before you pull up the shutters.

BusGuy

https://www.boards.ie/discussion/comment/122381451#Comment_122381451

What attracts people is the price of sale, of course nobody is gonna come if prices are high, plus VAT.