Gamble of the week: struggling retailer that just might prosper

This retailer is in a bit of a mess. But it has several advantages over similar businesses, and could pick up plenty of new customers, says Phil Oakley.

Comet is the latest high-profile casualty of a retail market that has changed forever. The internet has empowered consumers, giving them the knowledge they need to seek out the best products for the best price. A few clicks of a mouse and you can have what you want delivered to your door without too much hassle. Why bother going to the shops?

This leaves companies like Argos, Mothercare and Dixons with big problems. They have lots of stores with lots of staff and lots of stock. This puts them at a massive cost disadvantage. Throw in the problems of car parking and you have to give customers good reasons to go and shop there. Without a decent product range and top-notch customer service, a slow death beckons.

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Phil spent 13 years as an investment analyst for both stockbroking and fund management companies.

 

After graduating with a MSc in International Banking, Economics & Finance from Liverpool Business School in 1996, Phil went to work for BWD Rensburg, a Liverpool based investment manager. In 2001, he joined ABN AMRO as a transport analyst. After a brief spell as a food retail analyst, he spent five years with ABN's very successful UK Smaller Companies team where he covered engineering, transport and support services stocks.

 

In 2007, Phil joined Halbis Capital Management as a European equities analyst. He began writing for MoneyWeek in 2010.