Chances open as big boys crash

Apr 14 2009 by Karen McLauchlan, Evening Gazette

THE departure of big name brands from the high street is fashioning opportunities for cash-conscious firms to beat the recession.

That’s the view of Middlesbrough video games retailer CHIPS, which is benefiting from the disappearance of competitors Woolworths and Zavvi from the town’s centre.

Joint managing director Don McCabe, pictured, said a recession was good for “sorting out the wheat from the chaff” and bringing new business to those who looked after their finances.

He says: “At the moment, the high street is not for the faint-hearted. The recession is wiping out some businesses and has made sure everyone in the country is having a reality check.”

He said CHIPS would plough ahead with plans to double turnover to £20m - although it may take longer than the three years predicted in 2008.

Declining shop sales have been offset by a surge in online business, meaning that annual revenues are “roughly stable” at £10m.

The company has also benefited from the collapse into administration of Woolworths’ Entertainments UK Ltd, distributor of video games for large retailers such as Tesco and Morrisons.

“It means that Tesco will have to do it all by themselves now,” says Mr McCabe. “Being a smaller company allows us to react and adapt quicker.”

Established by Don McCabe and business partner Nik Agar in 1986, CHIPS employs around 100 staff and has 12 company-owned outlets and 21 franchised stores in the UK.

High street closures on Teesside:

GONE - Woolworths from Redcar, Middlesbrough, Billingham, Hartlepool and Stockton

GONE - Zavvi from Middlesbrough

GONE - Creative Hands Crafts from Dormanstown and Redcar

GONE - Electrical retailer MSV from Middlesbrough

GONE - Adams, Stockton and Hartlepool