Friday, 19 August 2016

Loyalty Wars.

There is a war for our loyalty and we are winning.

I have predicted the rise and fall of UK retailers on the stock market a great deal better than the finance professionals. You could do the same.


The top picture is from Cordings, the one below is an area of upmarket shops and restaurants. The high street is not finished as some people believe. Only ugly shopping centres will perish.

I was not making stock recommendations at the time but shopping tips. If I had been aiming to give stock recommendations I probably have done a great deal worse.

Aldi, a deep discounter has been the big winner on the back of its legion of middle class fans. One does not simply become a customer of Aldi- one becomes an evangelist for them

One other big winner (bizarrely) has been Fortnum and Mason, grocer to the Queen. This outfit has recently opened a branch at the Eurostar terminus and is now expanding overseas. It already has more branches in Japan than the UK.

Fortnums represents escapism and the idea of Englishness that is often more popular abroad than it is here. We could all do with some of this these days. As a general rule retailers at the very top and the very bottom of the price scale are doing well. The middle is being killed.

The old stock market adage 'buy what you understand' seems to work. When I have money for stocks I may specialise in retail.


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