Early years (1933–1958)
Comet was founded in Hull in 1933 by entrepreneur George Hollingbery as Comet Battery Stores. Hollingbery had noticed the increasing popularity of the wireless radio during the 1930s and launched a service which involved himself and one other employee charging batteries in his workshop and delivering them to customers for a small weekly fee.
By 1939, the service had expanded, to around 2,500 customers and a small fleet of vans was required for the deliveries. As customer demand grew for replacement wireless sets, Hollingbery renamed the business to Comet Radio Services and began providing a radio rental service.[7] Comet's first retail store was opened in George Street, Hull in the 1950s. Two more stores were subsequently opened in Bridlington and Driffield.
George Hollingbery died in 1958, aged 55, and his son Michael took control of the business.[8]
Pioneering the discount warehouse (1968–69)
In 1964, the Resale Prices Act was passed in the United Kingdom, rendering all resale price agreements 'against the public interest' unless proven otherwise. Minimum resale price maintenance (MRPM) had ensured that retailers such as Comet could only sell a product at a price determined by the manufacturer. The abolition of MRPM allowed Comet to make the transition from a small electrical retail chain in Yorkshire to a national discount retailer. In 1968, Comet opened its first out-of-town retail store in Hull, offering a range of 50 radio and television products.[7][9]
Alan Sugar, the founder of Amstrad, said later that the opening of this discount warehouse "changed the face of retailing."[10] The business was predominantly mail order although members of the public were also able to purchase from the warehouse in person.
Comet placed full page advertisements in specialist magazines and newspapers, listing their stock and the prices, which were between 15% and 45% lower than the manufacturers' recommended retail prices.[9][10] One such advertisement in The Yorkshire Post resulted in customers "queueing around the block."[7] Sugar said: "This form of retailing signalled the demise of the small electrical shop on the street corner, which simply couldn't compete."[10]
Initially, Comet was the only major retailer offering electrical equipment at heavily discounted prices, and the largest share of its business remained mail order. When competitors such as the G. W. Smith and Laskys chains also began to offer discounted equipment, Comet was compelled to begin opening its own branches nationwide.[10] Comet eventually purchased the Laskys chain outright for £8.9 million in 1989.[11]
In 1969, a second discount warehouse was opened in Leeds, and the company was renamed Comet Radiovision Services.
Expansion and flotation (1971–1973)
Between February 1971 and July 1972, another seven discount warehouses were opened, including outlets in Edinburgh and Birmingham. A further nine warehouses were expected to be operational by May 1973. Total sales from their warehouses rose from £308,000 from 1968 to 1969, to £5.3 million from 1970 to 1971.[9]
Despite the success of its out-of-town warehouse operations, Comet continued to maintain a presence on the high street, assisted by the consumer boom of the early 1970s ("the Barber Boom"), the introduction of hire purchase facilities, and the growth in the purchase and rental of colour television sets. Comet also traded on its after-sales service, a twice-weekly nationwide delivery service, and its ability to undercut most competitors by around 10%.[9] Goods were sold with 12 months' free service, including parts and labour, and Comet guaranteed that it would beat "any genuine advertised price" for brand new items.[12]
In July 1972, Comet went public with an initial offering of 4.7 million shares at 110p.[13]
Budget booms and busts (1974–1976)
The business was impacted badly in 1974 by the three-day week, tighter government controls on hire purchase and consumer credit, and the knock-on effect of a worldwide shortage of steel and plastic.[15]
Relying on fast turnover to compensate for reduced margins (typically the company operated with only a 2% pre-tax margin), Comet was particularly vulnerable to any slump in consumer activity. Where previously it had been able to sell goods "so quickly that they are gone before the manufacturers' invoice has to be met" Comet now found itself having to dramatically revise its sales forecasts and reassess its orders.[15][16]
Competition from longer-established department stores and high street multiples was also growing, as Currys opened two discount warehouses (under the trading name Bridger Discount), followed by Great Universal Stores and Rediffusion.[16]
Bids and buy-out (1981–1984)
In June 1981 the Hollingbery family began to reduce its shareholdings in Comet. Valued at £51 million, the group now included 200 Comet Electrical and Timberland Do-It-Yourself outlets, a jewellery manufacturer and a supplier of Polarcold metal pressings for domestic appliance manufacturers. The family disposed of 8 million shares, raising £9.92 million. Michael Hollingbery explained: "Too much of the family wealth was concentrated in one company."[26]
In April 1984 Harris Queensway announced that it was finalising "an agreed bid" of £152 million for the Comet group.[27] The following day, Woolworths (then owned by Paternoster Stores, forerunner of Kingfisher) announced that it had made a £177 million counter-bid, which had been accepted.[28] Hollingbery retained the Comet chair after the sale, which took place in May 1984.[29][30]
Hostile takeover bid for Dixons (1989–1990)
In December 1989, Kingfisher announced a £461 million hostile takeover bid for Dixons.[31] Dixons had acquired Currys in 1984, and Kingfisher said that if the bid was successful it would retain both brand names along with Comet.[32] Dixons retaliated by preparing a submission to the Office of Fair Trading (OFT) stating that a merger of Comet, Currys and Dixons would create a monopoly in out-of-town retail parks.
Stanley Kalms, Dixons' chairman, said: "[This] is about a virtual monopoly in retail parks, the fastest growing sector of the business. Out-of-town there are only two competitors, Currys and Comet."[33] Kingfisher claimed that the combined market share of Currys, Dixons and Comet would only represent 22%, below the threshold of 25% which would trigger an investigation by the Monopolies and Merger Commission (MMC), while market researchers assessed the combined share as 26%.
On 16 January 1990 Trade Secretary Nicholas Ridley
Recession and consumer crisis (1990–1997)
In November 1990, following the merger of British Satellite Broadcasting (BSB) and Sky Television to form BSkyB, Comet issued a High Court writ seeking £10 million in damages from BSkyB for breach of contract. Comet alleged that it had a contract with BSB to supply BSB's satellite dishes and receiving equipment – of which Comet had already sold 17,000 units, with several thousand still in stock – which were now obsolete as Sky's equipment, which retailed for £100 less, was being used for all future customers.[38]
In January 1995, market analysts began sounding warnings over the viability of Comet and its sister group Woolworths. Comet had made strategic errors with its home computer business, and its decision to stop selling computer games had allowed competitors to corner the market. Trading at a loss, and with considerable leasehold commitments, analysts suggested that both Comet and Woolworths, with "weak retail strategies" of "cheap and cheerful", might be sold by Kingfisher.[39]
Kingfisher's chairman Sir Geoff Mulcahy, described their performance as "unsatisfactory" and said "We have got two problem areas, Woolworths and Comet." John Richardson, an analyst at NatWest bank, warned that "very substantial rationalisation and reorganisation" was required at Comet.
The Wal-Mart effect (1999–2000)
In April 1999, Kingfisher attempted a merger with Asda, but was subsequently outbid by Wal-Mart, the world's largest retailer.[45] The £6.7 billion acquisition "sent a ripple of fear through United Kingdom stores".[46] Kingfisher responded by appointing Joe Riordon, former vice-president of Wal-Mart's people division, as managing director of Comet.
Riordan oversaw the launch of a £2 million, 30,000 ft2 (2,787 m2) Comet store in Paisley, described as "the blueprint to transform the industry". In effect a carbon copy of Wal-Mart's retail strategy, the move was an attempt to "beat Wal-Mart at its own game... before it has a chance to turn its guns on Comet's sector".[46] Riordan left the company abruptly in April 2000.[47]
In July 2000, Wal-Mart, in what
KESA Electricals (2000–2006)
In September 2000 Kingfisher revealed its plan to demerge into two listed companies, separating the "poorly performing" Comet and B&Q groups (provisionally called New Kingfisher) from the Superdrug, Woolworths and Big W chains (General Merchandise).[49] The demerger of the electricals business, including Comet and French chains Darty and BUT, delayed in part by "indecision and management infighting," eventually took place in July 2003, with the group renamed KESA Electricals.[50][51] The name originated from Kingfisher Electricals with the SA taken from Société Anonyme, the French equivalent of plc.[52]
The rapid growth of online shopping during the period 2000–2003 had surprised many analysts.
Great Recession
In September 2007, just before the 2008 financial crisis, KESA warned that its prospects in the United Kingdom were "uncertain" as the credit crunch and higher interest rates could lead to consumers cutting back their spending on new electrical products. Analysts at Landsbanki said: "[W]e see serious long run threats to electrical retailing from the growth of the internet, the proliferation of competition and the resultant downward pressure on prices and margins."[57]
In June 2009, KESA posted a pre tax loss of £81.8 million in the 12 months to 30 April 2009, compared to a profit of £128.8 million in the previous year. Over the same period, Comet's retail profit fell by 76.5% to £10.1 million.[58] In April 2010, United States-based Best Buy, the world's largest electrical goods retailer, opened its first store in Thurrock, Essex, with a plan to open one hundred out-of-town warehouses over the following four years.[59]
In September 2010, a new logo was launched, similar to the previous logo, but "softer" in design.
Administration and closure
On 1 November 2012, Comet announced it was filing for administration, and entered administration the following day. Deloitte were appointed to act as administrators for the chain.[66][67] A spokesman said: "The board is urgently working with its advisers to seek a solution to secure a viable future for the company."[68] This followed a period of "increasing pressure" from suppliers who insisted the retailer pay in advance for stock before the Christmas trading period.[69]
After the announcement, the Comet website became unavailable to visitors[70] until 3 November 2012, when a liquidation sale promotion was published.
Comet.co.uk (2020–present)
In December 2019, The UK Computer Group (later Misco Technologies) bought the rights to the Comet intellectual property and website from Deloitte.[84] In July 2020, they announced a relaunch on social media, and in August 2020, Comet.co.uk was re-launched.[85]
In May 2025 the online marketplace OnBuy acquired the Comet brand from Misco Technologies. OnBuy announced that Comet was to be relaunched as a UK electronics marketplace, following a £10m investment, in late 2025.[86] As of April 2026, Comet has a storefront on OnBuy, but the main Comet website continues to display a 'Coming Soon' message.
