Hornby pull the plug on Rails of Sheffield

[Paddy]

Hi @N_GaugeModeller

You raise a very interesting point.  If memory serves, Hornby tried to expand selling direct under the previous management but it did not work out well for them.  The new team made a point of re-engaging with the model shop network.  My understanding is that this was working well for Hornby until... COVID.

There are retail analysts stating that the way we shop has now fundamentally changed to online first.  This mode of shopping was increasing anyway but COVID has accelerated the change.  The question is will we ever return to visiting shops in significant numbers?  I would say that while there is a real risk of infection (?) and we have to wear face masks, socially distance the answer is "no".

If this change is indeed permanent then it is hard to see the value that a model shop adds from Hornby's perspective.  Why ship product from Hornby's warehouse to a retailer so they can sell it at a discount and make some profit?  Why not just sell direct and keep all the profit for yourself?

The danger obviously is that if shopping habits do return to normal then Hornby could find itself back in square one.

Personally, at the current time, I would suggest that a multi-channel approach is still the best until we all know what we are dealing with.

Obvisouly the above are my own thoughts and may/probably do not have anything to do with the Rails/Hornby announcement.

Kind regards

Paddy