Comet, one of the UK’s most recognisable names on the high street, is facing administration according to reports. Some 6,000 jobs will be at risk if the electronics retailer does indeed call in an administrator.
Comet was bought by OpCapita for just £2 last year, and it is estimated that the company made a loss of £35m in the year to 30 April.
Dan Wagner, CEO and Chairman of Powa Technologies, which is responsible for implementing online and mobile retail platforms for some of the leading high street names, said: “This news really does show the importance of interacting with today’s customers, and what happens when companies don’t pay adequate attention to this.
“The reason Comet finds itself in this position is because it failed to implement a coherent web, ecommerce and mobile strategy. For a store of its stature, Comet was relatively late to the party with regard to online retail, and as it result spent much of its time playing catch-up. The consumer electronics market has been particularly competitive of late, and those who have invested heavily in a multi-channel strategy have reaped the rewards.”
Dan Wagner also founded e-commerce giant Venda, the world’s largest independent e-commerce platform turning over $35 million and processing in excess of $4 billion a year in retail transactions. The company is responsible for retail platforms for the likes of Tesco, Orange and Royal Mail. mPowa, Dan’s latest venture, allows companies to accept credit card payments through their mobile phones.
He continued: “Regardless of size, companies can no longer merely pay lip service to online and mobile commerce, particularly because a greater number of transactions are taking place through these channels. And with the growth in popularity of tablet devices, this will increasingly be the case. The potential demise of Comet is indeed sad news for Britain’s high streets. A keener eye on online shopping would have helped Comet to maintain its favourable position in the marketplace.”