17-06-2015, 09:52 AM
Just a few musings on Maplin, prompted by discussions elsewhere.
For years I've occasionally visited Maplin stores in Hull, Grimsby, Sheffield, Nottingham, London, Liverpool, York. Without exception the staff are attentive, helpful and pleasant.
Maplin has had mixed fortunes and has gone through a management buyout and several takeovers. In 2001 there was a £41 million management buy-out, and In 2004 Maplin was sold by the management team for a six-fold increase (£244 mill) to Montagu Private Equity. A decade later, in 2014 Montagu sold Maplin to 'turnaround specialist' Rutland Partners for a third of what they paid for it - just £85 million. (Rutland also owns Pizza Hut UK and Bernard Matthews). Whether Rutland does manage to lick Maplin into shape for it to survive is a matter of conjecture.
The market that Maplin caters for has changed out of all recognition since it was founded in 1972 by Doug Simmons (who I think was a BT engineer at the time) and a chum Roger Allen, who were fellow electronics enthusiasts, and set up a mail order business in a very small way working from home. Back then, components were their core business – now, they’re just peripheral, contributing little to the bottom line. Those of us who are long enough in the tooth will remember that in the early 70s, there was a great deal of interest in hobby electronics with many magazine titles that have since ceased to exist, including Maplin’s own magazine, and the kits that went with it.
When Maplin started to open shops – many in expensive High Street locations – if they held stock in any depth they’d have more in the shops than in the warehouse, and for what was primarily a mail order operation back then, it made no sense to have slow turnover items in stock in shops, but run out of stock in the warehouse, thus failing to satisfy the needs of mail order customers. It now has more than 200 shops – some are mega-stores on retail parks which stock the full catalogue.
Components are low value ,slow turnover, and just nuisance value. I’m surprised they stock any, with so much competition from primarily online firms such as ESR Electronics, Rapid, Cricklewood, Spiratronics et al, who are reaching the stage of having wider stocks of components than Maplin, (not to mention RS, Farnell/CPC, e-bay suppliers, etc), and many smaller firms such as Bowood Electronics.
Trying to expand component sales nearly put paid to Maplin in the mid 80s. As the retail Market for components was tailing off they tried to expand into the business sector and went up against the likes of Farnell/CPC/RS. They veered away from that ill-fated venture and refocused their marketing strategy to cater for the expanding market for higher value consumer electronics, test gear, computers, audio, electronic novelties, sat-navs, CB, plugs, sockets, connectors, cables, in-car entertainment.
Much of Maplin’s stock is sourced from the Far East, where they have an HQ in Shenzhen, China. The Far East operation - set up in 1995 - handles more than 500 suppliers and 5,000 buying items for the parent company. (Do they really need an inventory of 5,000 lines?).
More about that here:
https://en.wikipedia.org/wiki/Maplin_Electronics
From my perspective they’re between a rock and a hard place.
With such a large number of shops (210 at the last count), a High St presence with consequent high operating costs, they can’t afford to be price competitive, so unless customers need something urgently, they just go online, check the price and see who offers the best deal. To give an example, Velleman Kits from Maplin are generally double – some times nearer three times the price from other suppliers. To give just one example, a Velleman mini-kit ‘MK125’ (a light operated switch), costs £9.99 from Maplin, £4.67 from Rapid, £4.26 from Quasar and £4.26 from ESR Electronics, all of whom stock a much wider range (All prices inc VAT ex P&P). If you want one today, and your local Maplin store has one, then fine – there’s a price to be paid for convenience, but if you’re prepared to wait a day or two the price differences mount up.
I’ve just bought a tube of 60 turned pin 8-pin IC sockets from Rapid for £5.64 + VAT = £6.77, that’s 11.3p each. Just one socket from Maplin (two in stock at each shop) costs £1.39.
Maplin do accept paypal, and orders over £10.00 are post free. They’ve been around for 43 years, and I think most of us would say they’ve served us well. In this internet and e-bay age, I do hope they don’t suffer the same fate as Radio Shack - I think we’d be shocked and saddened were that to happen, but I wouldn't be altogether surprised.
I’m sure that few of us can walk past a Maplin without popping in to browse!
Rambled and dribbled Yorkie.
For years I've occasionally visited Maplin stores in Hull, Grimsby, Sheffield, Nottingham, London, Liverpool, York. Without exception the staff are attentive, helpful and pleasant.
Maplin has had mixed fortunes and has gone through a management buyout and several takeovers. In 2001 there was a £41 million management buy-out, and In 2004 Maplin was sold by the management team for a six-fold increase (£244 mill) to Montagu Private Equity. A decade later, in 2014 Montagu sold Maplin to 'turnaround specialist' Rutland Partners for a third of what they paid for it - just £85 million. (Rutland also owns Pizza Hut UK and Bernard Matthews). Whether Rutland does manage to lick Maplin into shape for it to survive is a matter of conjecture.
The market that Maplin caters for has changed out of all recognition since it was founded in 1972 by Doug Simmons (who I think was a BT engineer at the time) and a chum Roger Allen, who were fellow electronics enthusiasts, and set up a mail order business in a very small way working from home. Back then, components were their core business – now, they’re just peripheral, contributing little to the bottom line. Those of us who are long enough in the tooth will remember that in the early 70s, there was a great deal of interest in hobby electronics with many magazine titles that have since ceased to exist, including Maplin’s own magazine, and the kits that went with it.
When Maplin started to open shops – many in expensive High Street locations – if they held stock in any depth they’d have more in the shops than in the warehouse, and for what was primarily a mail order operation back then, it made no sense to have slow turnover items in stock in shops, but run out of stock in the warehouse, thus failing to satisfy the needs of mail order customers. It now has more than 200 shops – some are mega-stores on retail parks which stock the full catalogue.
Components are low value ,slow turnover, and just nuisance value. I’m surprised they stock any, with so much competition from primarily online firms such as ESR Electronics, Rapid, Cricklewood, Spiratronics et al, who are reaching the stage of having wider stocks of components than Maplin, (not to mention RS, Farnell/CPC, e-bay suppliers, etc), and many smaller firms such as Bowood Electronics.
Trying to expand component sales nearly put paid to Maplin in the mid 80s. As the retail Market for components was tailing off they tried to expand into the business sector and went up against the likes of Farnell/CPC/RS. They veered away from that ill-fated venture and refocused their marketing strategy to cater for the expanding market for higher value consumer electronics, test gear, computers, audio, electronic novelties, sat-navs, CB, plugs, sockets, connectors, cables, in-car entertainment.
Much of Maplin’s stock is sourced from the Far East, where they have an HQ in Shenzhen, China. The Far East operation - set up in 1995 - handles more than 500 suppliers and 5,000 buying items for the parent company. (Do they really need an inventory of 5,000 lines?).
More about that here:
https://en.wikipedia.org/wiki/Maplin_Electronics
From my perspective they’re between a rock and a hard place.
With such a large number of shops (210 at the last count), a High St presence with consequent high operating costs, they can’t afford to be price competitive, so unless customers need something urgently, they just go online, check the price and see who offers the best deal. To give an example, Velleman Kits from Maplin are generally double – some times nearer three times the price from other suppliers. To give just one example, a Velleman mini-kit ‘MK125’ (a light operated switch), costs £9.99 from Maplin, £4.67 from Rapid, £4.26 from Quasar and £4.26 from ESR Electronics, all of whom stock a much wider range (All prices inc VAT ex P&P). If you want one today, and your local Maplin store has one, then fine – there’s a price to be paid for convenience, but if you’re prepared to wait a day or two the price differences mount up.
I’ve just bought a tube of 60 turned pin 8-pin IC sockets from Rapid for £5.64 + VAT = £6.77, that’s 11.3p each. Just one socket from Maplin (two in stock at each shop) costs £1.39.
Maplin do accept paypal, and orders over £10.00 are post free. They’ve been around for 43 years, and I think most of us would say they’ve served us well. In this internet and e-bay age, I do hope they don’t suffer the same fate as Radio Shack - I think we’d be shocked and saddened were that to happen, but I wouldn't be altogether surprised.
I’m sure that few of us can walk past a Maplin without popping in to browse!
Rambled and dribbled Yorkie.
Regards, David.
BVWS Member.
G-QRP Club Member 1339.
'I'm in my own little world, but I'm happy, and they know me here'
BVWS Member.
G-QRP Club Member 1339.
'I'm in my own little world, but I'm happy, and they know me here'
