ModelZone seeking Administration

[t-b-g]

Unfortunately this is just one of the casualties of the metamorphosis which is going on in retail.  We could leave the EU, switch off the Internet and go back to Retail Price Maintenance and Purchase Tax to save traditional walk-in shopping.  Alternatively we could accept the march of progress and find a better way to access 'see it in the flesh, try before you buy, expert advice' personal service we all crave, yet seem unwilling to pay for.

 

Perhaps the exhibition model is the starting point.  Manufacturers (not suppliers) attend exhibitions with a wide range of samples but little or no stock to sell.  Punters make their decision on what to buy, then purchase online.  If the product is good the manufacturer gets the sale whichever supplier is chosen.

 

The march of progress is not always good, neither is it always bad!

 

I go to quite a few shows and actually make most of my limited purchases in such places.

 

There are a lot of people who perhaps only visit their local show and they would have to wait a long time to see new products. In fact, with the limited runs being produced now they would almost certainly miss out altogether.

 

Many years ago, I started work in a financial organisation. We competed against other organisations purely on the level of service we offered because we all offered and charged the same interest rates. It was a relatively unexciting system but it was also extremely stable. Then greed set in and everybody started offering more and charging less to get more business than the next firm.

 

Now we have seen what greed and a volatile financial system can do and the same things seem to be happening in the retail world. It is dog eat dog and survival of the fittest, with no room for the "little guy".

 

Is that really better than a fixed retail price for a particular product? Would Hornby be in the mess they are now if they could be sure how much they would get for each unit sold and could plan their production accordingly? Would our independent shops all be closing? Would Modelzone be shutting up shop now? I don't know the answers but they are interesting questions.

[shanks522]

I popped into the Bluewater branch yesterday, spoke to a member of staff who said they are closing on the 10th August. 

[PhilJ W]

Is the Romford branch still open?

[Butler Henderson]

From a posting on New Railway Modellers forum by the assistant manager of the Aberdeen store:

" Hull, Leicester, Doncaster, Bluewater and Cardiff will cease trading on Saturday August 10th. Romford, Ipswich, Meadowhall, Leeds and Swansea will cease trading on Tuesday August 13th."

[station cat]

Indeed

 

Probably the finest livery ever applied to a locomotive

 

 

(sorry, second finest! Middle Chrome Green and all that )

 

Whilst I wouldn't go quite that far, I have concluded that my initial plan involving a lot of black paint would more or less be sacrilege

[big jim]

called in the brum store earlier, there seems to be a bit of disparity in the pricing between stores now, the STVA wagon that was in the cabinet in derby was £25 but in brum the one's they had were £35

 

bought a stack of peco platform edging some of which had 20% off whereas others were 50% off 

[Jol Wilkinson]

Are you surprised?

 

Here is a multiple outlet business in the last days of operation, run by administrators whose chief interest is making money for themselves and their company, who probably don't really understand the type of retailing that MZ were in (or the profile of a large part of the potential customer base) and where the staff have probably become rather dispirited.

 

Jol

[Nobby (John)]

Popped into Milton Keynes store today, interesting that Hornby is full RRP with no discount at all but Bachmann had 30% off

[The Stationmaster]

called in the brum store earlier, there seems to be a bit of disparity in the pricing between stores now, the STVA wagon that was in the cabinet in derby was £25 but in brum the one's they had were £35

 

bought a stack of peco platform edging some of which had 20% off whereas others were 50% off 

I don't know what's happening now Jim but in the early days of the sale the prices were downloaded from HQ (or sent out on a list or disc or whatever for updating the tills) and the local shops had no control at all over pricing although they could shove the 'X% off' labels where they wanted.  I quickly found with items purchased in Reading that the signage reductions didn't align with the actual reductions on some items (the till reduction was invariably to my benefit as it happened) and it was no trouble asking what the price was when it was scanned at the till.

[scorpion]

this has been going on  a while now, people are going into store for bargains and are finding them in the non Hornby stock

 

Hornby seem to be burying their head in the sand, increased footfall but they won't reduce prices so the customers are buying the bargains from bachman and the likes

 

who has the least clue how to run a business, modelzone or Hornby, the future is not good for either i'm afraid

[andyram]

this has been going on  a while now, people are going into store for bargains and are finding them in the non Hornby stock

 

Hornby seem to be burying their head in the sand, increased footfall but they won't reduce prices so the customers are buying the bargains from bachman and the likes

 

who has the least clue how to run a business, modelzone or Hornby, the future is not good for either i'm afraid

 

But the rumour persists that there is a bid on the table for MZ from Hornby...therefore why should they reduce their prices??

[scorpion]

head, sand, we will see

[Jol Wilkinson]

this has been going on  a while now, people are going into store for bargains and are finding them in the non Hornby stock

 

Hornby seem to be burying their head in the sand, increased footfall but they won't reduce prices so the customers are buying the bargains from bachman and the likes

 

who has the least clue how to run a business, modelzone or Hornby, the future is not good for either i'm afraid

 

perhaps Hornby aren't as daft as you think.

 

If they don't sell these models they'll go back into Hornby's stock. If they have limited quantities of those items, then they may feel confident that they can readily sell them at a later date. Don't forget that those currently visiting the MZ stores are, going by many of the posts on this topic, just picking over the bones and looking for a bargain. 

 

For several years after taking early retirement,  I worked on a chandlery stand at the London Boat Show. Prices were already discounted (but still open to a further small negotiated reduction). However, if someone asked for a larger discount, it was refused on the basis that we could always but the item back into stock and make a reasonable margin, rather than give it away for no profit.

 

I see Hornby's situation as similar. They will have another opportunity to sell the stuff. Anything left when MZ finally close will get sold very cheaply, possibly by auction and probably re-appear on ebay.

[t-b-g]

Maybe Hornby can't afford to be letting stuff go at discounted prices. Perhaps it is better in their view to have stock with a potential sale at a higher price later rather than a certain sale at a give away price. Hornby are already struggling profits wise so accepting a further cut may not be something they can contemplate at the present time.

 

From some of the posts on here I can almost imagine some folk really looking forward to the next failed outlet/manufacturer so that they can pick up some real bargains in the "fire sale". What do we do when they have ALL gone?

 

We seem to be acting just like the folk who hunted various types of animals to extinction in the past. All we are interested in is getting what we want at the price we want to pay. OK, so we kill off the trade and the manufacturers but what the heck, we got a good discount doing it!

 

I am genuinely concerned that the main manufacturers will be looking seriously at the Modelzone situation and having seen a major outlet for their products vanish, they may well question whether the continued production and sale of RTR products is sustainable. I don't know what % of sales were through Modelzone but it would have been a decent amout and with decent profit margins due to the pricing structure there. If all that is left is the heavily discounted end of the market, that may hit everybody hard.

 

Interesting times.

['CHARD]

..... and having seen a major outlet for their products vanish, they may well question whether the continued production and sale of RTR products is sustainable. I don't know what % of sales were through Modelzone but it would have been a decent amout and with decent profit margins due to the pricing structure there. If all that is left is the heavily discounted end of the market, that may hit everybody hard.

 

I hope, but have no figures to back this up, that contrary to its glossy profile on the high street, Modelzone was more of a distraction to the manufacturers than their main conduit for sales.  Clearly for Hornby the situation is rather more complex, but then their business model has been under scrutiny from all quarters for the past few years.

[The Stationmaster]

I hope, but have no figures to back this up, that contrary to its glossy profile on the high street, Modelzone was more of a distraction to the manufacturers than their main conduit for sales.  Clearly for Hornby the situation is rather more complex, but then their business model has been under scrutiny from all quarters for the past few years.

I suspect you might be right - in model railway terms the stock in the few branches of Modelzone I have ever looked at has been considerably less in both variety and quantity than that of several independent retailers I know and indeed their Hornby stock (on display) sometimes seemed to be less than that held by a chap who regularly appears at exhibitions in our area (I believe he buys from a wholesaler hence he gets round Hornby's rule about only supplying customers with retail premises).

 

The main impact of the loss of Modelzone is, I suspect, most likely to hit Hornby in the Airfix and Humbrol areas and probably in the pre-Christmas Scalextric and railway trainsets areas.  All of course represent potential losses to the Group but might be balanced, at least in part, by greater concentration on direct sales - which we know Hornby are keen to further develop and maybe even expansion of their concessionary sales into other retailers in order to maintain High St presence.   What we think we want for the model railway side of Hornby's business might be completely different from what suits other ranges such as Airfix kits.

 

And what about Peco, and others - who also have Modelzone as an outlet?

[mike tugsandsheds]

I was at Trafford Centre yesterday.

 

No Hornby Stock, The only Bachamann was Class 47 IKB, and 411 EMU. Heljan RTC Railbus and some N Gauge Autoballasters

 

A few Oxford Diecast Trucks.

 

Very sad to see !

 

I picked up one of the trucks with 30% off.

 

Lets hope Hornby come to the rescue, if only for the sake of the staff

[melmerby]

 

Lets hope Hornby come to the rescue, if only for the sake of the staff

 

 

But the rumour persists that there is a bid on the table for MZ from Hornby...therefore why should they reduce their prices??

 

 

Exactly how?

 

I can't see Hornby buying a failed model chain

Would they want to sell all this R/C stuff which seemed to be the majority of the Birmingham stock

 

Keith

[mike tugsandsheds]

Maybe they will dispense with the R/C stuff and concentrate on Railways, DieCast and Kits/Paints etc.

 

There are many R/C only shops in existence that don't stock Railways/Diecast.

[Legend]

I'd always thought to get in High Street it was best to stock as wide a range as allows. Actually on my visits to model zone I seldom buy railway stuff (just limited editions) but browsed their range and bought RCA aircraft, helicopters, boats and die cast buses. Not all for me I might add but as presents. So having wide range def helps

[t-b-g]

I hope, but have no figures to back this up, that contrary to its glossy profile on the high street, Modelzone was more of a distraction to the manufacturers than their main conduit for sales.  Clearly for Hornby the situation is rather more complex, but then their business model has been under scrutiny from all quarters for the past few years.

 

That has to be speculation and I hope you are right but apart from pure sales numbers, Modelzone was the biggest visible face of the hobby to the rest of the world.

 

Those of us involved in the hobby will still be able to get what we want via the internet and exhibitions but the hobby as a whole (all modelling that is, not just model railways) will lose out if there isn't somewhere where mum, dad and grandparents can just walk in to get some stuff for the kid's trainset, or a remote control car for a Christmas present.

 

The hobby needs a first point of contact to attract new people and I am sorry to say that we seem to have lost the biggest one there is in our towns and cities.

[orcadian]

I'd have thought that the several hundred independent shops under the Toymaster banner were a bit more visible than ModelZone - Iknow the one in Keighley has a lot of Hornby stocked and its even got a trainset in the window

Mickey,

I agree completely with this view!  There were only 47 Modelzone shops around the whole of Britain, mainly in cities. There are, according to the Toymasters site, over 250 independent toy retailers represented by the Toymasters association - more than 5 times the best number of MZs! Whilst the shops may be smaller, it suggests that far more people will pass or know where there is a Toymasters in their nearest town, and quite often with a much bigger range of toy and model products available, where their quite often good stocks of RTR model railways plus plastic kits, paints, Peco and Ratio stocks, etc could catch the eye of a potential casual model railway purchaser. A jigsaw puzzle, or a diecast car, or a doll, or Brio today could well lead on to a Christmas or birthday trainset, and then having a reasonable range of model railway items on view leads to repeat purchases if the train set brings happiness and kick-starts an interest. 

Adult modellers, too, only need to visit once or twice to notice that there is a nearby general toy shop with things that interest them.

The Toymasters shops that I've seen and used generally have at least one enthusiastic modeller on the staff, happy to chat at quiet trading times during the week, and then willing to negotiate a 'little something' on the price tag.

 

Alright, Toymasters are not what most 'expert' or very experienced railway modellers would call a 'specialist model shop', but they are, at least, a very good, comparatively local 'half way house', that well deserve our support. Hornby and Bachmann (and even Heljan & Vitrains) can be found in over 250 High Street type locations, and their wider range of their products seen (and demonstrated or tested before sale!) than Modelzone ever offered (SignalBox, Rochester probably honourably excepted!).

 

I'm also somewhat surprised that, just of late, RM Webbers are saying how big an impact the loss of MZ could have on Hornby, but over the past few weeks, most of the posts have mentioned the narrowness of the Hornby range in MZ, the prevalence of RRP-only pricing and the lack of knowledge of many MZ staff. As so few RM Webbers seem to have been regular Hornby customers via MZ,  will Hornby really be hardhit by the loss of 47 MZs?  The Hornby website  says there are over 825 Hornby retaillers in G B & Ireland, even after taking away the 47 MZs!

 

Richard

[County of Yorkshire]

Some remarkable pricing in what are the last few days of the Hull store. Just picked up a Bachmann Modelzone exclusives set of 3 Birmingham area PO wagons for £11.99. Given the RRP stickers shows £28.99. That's about 60% off!

 

Interestingly, Hornby have seemingly taken away all the locos in the display cabinets, yet the majority of their rolling stock remains. Has this happened anywhere else? 

[EddieB]

Is the Romford branch still open?

Closing 13th August.

 

Not much left (apart Hornby at list price), a few Bachmann buildings and MZ special editions at 20% discount, 20% off Oxford diecast.  A couple of Gaugemaster controllers also at 20% discount.  Glues, paints and tools at 50%.

 

According to a notice all store fittings are for sale at £199.  If this means all the various display cabinets and shelving, I would consider that a bargain.

[melmerby]

 

Alright, Toymasters are not what most 'expert' or very experienced railway modellers would call a 'specialist model shop', but they are, at least, a very good, comparatively local 'half way house', that well deserve our support. Hornby and Bachmann (and even Heljan & Vitrains) can be found in over 250 High Street type locations, and their wider range of their products seen (and demonstrated or tested before sale!) than Modelzone ever offered (SignalBox, Rochester probably honourably excepted!).

 

Richard

You are assuming all Toymasters stock Hornby et al

I think you will find some don't (at least the few I have visited)

 

Keith