Meat distributor Crawshaws closes 35 locations after losses

Company Administration

The Crawshaws group has been established since 1954, first launched at Yorkshire and for 60 years the group has grown significantly from one store at Yorkshire, they spread their wing with stores across the Midlands and North of England, with more than 40 stores across the nation. In October, the management of the company stated to expand their business, but however, they have difficulty in raising the amount of money needed to expand the business, even though last year the company reported more than £20 million revenue.

The company since 1954 until recently has created more than 600 jobs across the country, but in 2018 the upper management decided to closes most of their street shop and there will be more than 300 unemployment as a result. The upper management stated that to expand the company the best way is by reducing unprofitable shops, this makes sense since a business can’t run in negative revenue. The internet plays an important role impacting street shop around the world with their online market for over 10 years, according to the statistic by statistia UK has become the third largest online market in 2015, UK has a market value of more than £500 billion in 2017 and roughly 80% of the UK shop online.

The impact for the street shop is significant since there are not so many people willing to go to the street Shop to buy their need items or groceries, they simply just push their mobile phone apps and do the shopping at the workplace or at school or any other places. The Crawshaws group stated to expand their business to grow bigger, but why they close so many of their street shop and make the unemployment rate slightly increase? Let us have a look the opportunity, the group has been well known since 1954 and more than 80% of UK population know Crawshaws as a quality meat vendor.

The online market gives Crawshaws bigger opportunity to expand their business. Lets’ have a look at some factors

  • The company will need to pay weekly or monthly or yearly rent and need a big location to display their meat
  • The company needs to pay for store utilities i.e. electricity, water, etc.
  • The operational cost for their employee, where the company need to pay their hourly rate.
  • The other operational cost like delivery and maintaining their meat quality.

Online market

  • The company only need to design a website with shopping system, the cost range from hundreds of pound-sterling to hundreds of thousands pound-sterling, the website can reach wide nation or an even wide world.
  • Maintenance of the website doesn’t require a lot of people, only few IT professional needed.
  • The company only required one distribution centre to distribute their meat, so the quality of the meat will increase.
  • The marketing effort for Crawshaws is low, since most people in the UK know Crawshaws quality for their meat.

The news regarding about Crawshaws looking at the company administration process‌ ‌and closing their shops doesn’t mean the company will go down or bankrupt, the other side of the story it could give a bigger opportunity for the community combined with online shopping, where everyone can have their own company.