Good point Balance
Maybe I thought in haste and assumed no debt .... but then all they say is a $65m share acquisition eh
Additional debt would make the sums different
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Good point Balance
Maybe I thought in haste and assumed no debt .... but then all they say is a $65m share acquisition eh
Additional debt would make the sums different
Increasing the exposure to an deflationary environment is bad enough...but...taking on debt with the hope of paying it off from the profits earn't within this deflationary market.....yeah right!!
Just to clarify, the acquisition also includes all Bond and Bond stores.
http://www.nzherald.co.nz/business/n...ectid=10853046
Must say I'm also sceptical about this move on WHS' part which signals an abrupt switch from their traditional discounting model. Let's hope they know what they're taking on.
....fleas!!!
People and businesses are afraid of deflation and so they should be.
Deflation used to be common... In the USA deflation ruled most of the 19th century during its technical revolution...businesses these days have forgotten what deflation is all about and how to survive during an era of deflation which can last for decades. The last generation that experienced it are dead and it seems the successful methods of operating within an deflationary environment have died with them.
Deflation atm is localised mainly within the tech area ....how are the major businesses handling it atm?? Panasonic $9.6 B loss Sony Q2 loss $198M Samsung $17B loss LG q4 $98M loss.. I think its safe to say that the best brains in the market/product department haven't come to grips to how to operate/market their products to be a successful business within a deflationary environment....yet..
They should dust off some old 19th century economic business textbooks..eh?
Now the Warehouse folk .............ah...she'll be right mate.
Makes sense in some ways;
Gives WHS access to better brands.They have had too many problems with poor TVs etc.
Helps both WHS and Leemings/Bond and Bond "bulk up" to buy product at better prices.
Also helps inlogistics/warehousing.
With larger buying group,should be able to compete with NAFTA[spelling may be wrong] which includes JB Hi FI and Smiths City.
Head Office costs/distribution etc at Leemings should be able to be cut.
Makes sense for WHS and stops Leemings going broke.
Margins are very thin and with price deflation/obsolete product it is a very difficult section of retail to be in.
Went for a bit of a look at Warehouse Extra on Blenheim Road last night.Wife looked around while I read a good book on Bruce MacLaren.
Only section that looked busy was the returns department.!!!!!!!!!!!
This announcement makes me happy that I sold my WHS shares years ago and decided that BGR was a better retailer. Stick with what you know Rod Duke and don't go buying into the most incredibly competitive retailing business imaginable!
In my view there are too many electronics retailers. And they have far too many staff. A trip into Noel Lemmings a few weeks ago on a week day resulted in me being pounced on by four staff over the 10 minutes I was in their shop. They were far too aggressive which made me wander down to Harvey Norman and spend my money there. That and the fact they don't sell Bosch which was a pity.
How can they be making a decent margin when they have constant sales, will reduce prices even further when you start playing them off against each other, Cherrytree (I'm not a member) and the internet in general??!
Synergies? Well yes but at what cost and will they be worth it?
Personally if I was a shareholder and I got a vote in this decision I would vote against it.
NoeL Leemings are a nothing store, they sell nothing that makes a person want to go there. They not
cheap and they sell stuff you can buy in any of the other big box retailers.
Our toaster broke down last week , went online to check out prices and range , Noel Leemings stocked
the same as Briscoes , except they were all aroiund thirty dollars more expensive.
If The warehouse want to make a success of it , they will have to make them far more competitive price wise .
they could also lay off half the staff , the ones that follow and pester the customers as soon as they walk in the door
I wonder how well Noel Leemings do being part of FlyBuys, and whether this will change?
The mood at TWL certainly seems to be very up-beat about the purchase, especially from Mark Powell.
Looking over the numbers, and the competitive nature of electronics, I'm not so sure if it was the right move. Obviously, the ability to get into the lucrative brands such as sony, panasonic, etc for TV's and the likes is good. However, one only has to look at the fall from grace of JB HIFI, Harvey Norman, etc over the past few years to see how much of a competitive and cyclic industry it is, one that is very dependent on the loosening of credit and spare cash to spend for consumers.
Saying this however, TWL has tried expanding into Australia and failed. Tried matching Foodstuffs and Progressive by going into grocery and failed. What else is there left to do with regards to expansion. Warehouse Stationary and Warehouse stores are just about everywhere they need to be all over NZ. Opening new ones will only take away sales from current stores. As what has been seen with some of it's new stores.
Retail sector and TWL as an investment... I wouldn't go near it right now personally.
The Leeming purchase makes sense to me.
The purchase price isn't particularly expensive and the retail cycle is at a low.
WHS can't even offer a browngoods product that would entice me to look let-alone purchase. Whitegoods are worse. Buying Noel Leeming side-steps a supply chain issues for WHS (Major retail competitors stopping manufacturers from supplying). Economies of scale must be available from both volume and procurement perspective, perhaps even marketing. There are potential opportunities from a "store-with-a-store" perspective if WHS doesn't have the pulling power in this category.
Demographically, first home buying (and therefore white & brown goods sales) will pick up in the next 3-4 years - probably just enough time for WHS to position.
CEO said they purchased this debt free on the news tonight , so maybe a bit of a bargain ....
WHS are pretty good operators in their core space.
They have very good buying teams (including an office in China), very efficient warehousing and distribution in NZ, some of the best IT systems in NZ business and a solid marketing department. These are all things they can help NLG with which has never really been able to invest in much.
Generally they are, spreadsheets and access databases (ie stopgaps) everywhere.
I had the pleasure to work a bit with the WHS team once and the difference couldn't have been greater. NLG was always at the other end, all kinds of incompetence on the smell of an oily rag.
It seems ST posters investors and Mr Market are not worried about the deflationary environment.
I think this deflation environment factor is just as important or more important than the synergies and almagamations of similiar operations, increased efficiencies, availabilities and accesses to new suppliers and customers, as well as extra efficiencies through shared data bases that the company as a whole will be able to obtain though this buy up.
So I'll harp on about this deflation thing like a dog with a bone.....as doing business in a deflationary environment requires a whole new set of skills, a change of operating behaviour, thinking and a set of business strategies to try these disciplines together ....
If a company decides to enter into a deflationary segment of business they should already have a business strategy available to cope with that environment they are entering. WHS Investors should educate themselves so as to identify the behaviour and strategies that WHS will adopt and they will be in a position to judge if WHS has made the right set of choices.
Amazingly there is scarcely any data on the internet about application of business strategies during deflationary times....I now know why big tech companies are having big losses. I thought there would be info from Japan as they have had a type of deflationary environment for 20 years now yet the research is hard to find
I found this little very simple snipet from http://www.gaebler.com/Business-Stra....unfortunately it hardly scratches the surface but it gives shareholders an idea of what they should be looking at and researching for more detailed info when investing in a company that is operating in an deflationary sector of the economy. The shareholders can then be able to question the company on its business strategies that it adopts.
Strategies for Business Owners
- Plan for multiple scenarios. Scenario planning is the best business defense against deflation. A typical scenario might see across the board price decreases and belt-tightening. If you've planned ahead, you will be prepared to deal with the possibility of supply cost increases while the prices you charge for your products is forced down.
- Avoid long-term vendor contracts. If you believe that deflation is likely to occur, avoid locking yourself into long-term contracts with suppliers and vendors. Instead, let the market dictate the cost of supplies and buy short-term. Conversely, you'll want to lock your customers into long-term contracts as soon as possible.
- Consider buying capital. If you've planned ahead, deflationary periods can be ideal times to purchase capital, especially when equipment prices drop at a rate that is equal to or greater than the average rate of deflation.
I was listening to Mark Powell on News Talk ZB last night and thought he explained the purchase decision of NL rather well. He seemed pretty down to earth and honest.
Forsyth Barr not seeing real value in the purchase.
They've also downgraded their recommendation from "hold" to "reduce".
http://www.nbr.co.nz/article/warehou...-buy-dw-133794
Hoop - I think The Warehouse and others have been struggling with price deflation for a few years now .... most have been selling more things and making less money
Maybe greedy landlords and staff with expectations of a pay rise every year need to play a role ..... then they can get even more ecrewed by councils and rates and electricity companies with their power bills .... sad world eh .... tearing itself apart in an unsustainable way
Hoop - below are the price deflators from Stats NZ Retail Sales data - the %ages are how much prices have fallen over the last 2 years
Yes appliance stores the biggest falls but you can see that even department stores (The Warehouse) have suffered a fair bit of deflation as well
Tough for a lot though - food and fuel just keeps going up
Is the cycle reaally at the low? The internet is changing things for ever.
The Comet stores that just went broke in the UK were quite similar to Noel Leemings
The big box retailers just cannot compete with the etailers. NZ is behind in that
respect but it wont be long before we catch up.
Another personal anecdote, was on the phone to my old mum in England the other day,
she was complaining her TV had broken down and being 85 was a bit stressful for her
as not easy to get to shops or know what to buy.
Thought i would do good deed and went on Amazon UK and bought her a sony Bravia,
it arrived on her doorstop the next day, and was far cheaper than she could of bought
from any of the big box retailers
Prices (and product costs) down 20% - maintain gross margin %age and keep operating costs the same - means one needs to sell about 25% more units to make the same amount of money - that is a heck of a lot of extra TVs eh
The internet is changing things slowly but surely. Have you wondered how long it will be before you can go directly to the big ticket item manufacturer and buy direct cutting out the retailer completely? Pretty easy to hop onto the Panasonic, or Sony, or whoever's website, select the product you want pay via credit card and it is delivered to you. Why have a retailer at all? Some will want one for comfort, but as long as the manufacturer can provide support warranty support how much value does a retailer retailer add? Now that will be a real problem for these types of stores!
This approach is less likely to effect most of the lines stocked by Warehouse, Briscoes etc. But large appliance retailers?
An example of sorts was recently we were looking for LED downlighting for the kitchen renovation. Over a grand at Lighting Direct. Over $700 at Bunnings. Almost $500 on TradeMe. $220 delivered to the door when ordered direct from China. Like I said, the internet is changing things...
Emearg - Apple does that (ie. with iphone, ipad, ipod) but then they are very strict so their prices are constant, whether bought directly from them or a retailer. To offer a lower price, you have to parallel import them.
Emearg - LED lights, do you have a recommendation for where to get them from?
Cheers,
ArcticBlue
PS: sorry I know it's slightly off topic.
Well SP is still dropping which is slightly strange since the media/publicity/ forums seem to be equally divided on relative merits of the purchase. I guess the punters dont like change. Personally am happy to see it drop so I can buy more but just goes to show the effects of change and uncertainty on the market.
I did go online last weekend and purchased some stuff from WHS stationary.....fast, efficient and very user friendly. Delivered free on Monday. LIke it...opening up a whole new market of buyers for WHS. Their programmers are on to it. I did a google search for Twix bars since my usual source New World has discontinued them. Lo and behold one of the early results said WHS..click click...if you buy more than $50 get free delivery..good oh so added some stationary supplies and gum. I see this online portal as being a game changer and hugely positive for the future.
On noel leemings end of year report 2012 it had listed stock holdings of around the $81 million mark up for $70 million the year before, so it was possible high than this when the warehouse purchased the other day. sounds like a good deal based on stock holding alone, and it was basically a fire sale on Gresham part???
Anyway market doesn't look + on it...
Hi henry.
Welcome to the forum!
Good spot on the year-end stock numbers. I wonder though just how much stocks might have been run down since that date, given the liquidity problems that they were probably experiencing? Price deflation in this sector might also be an issue but either way it doesn't appear that WHS overpaid for the business. Providing they can now make it earn a dollar, of course!
Cheers
You may well be correct Halebop.. But I think that eamearg is pointing in the right direction..
Manufacturers do not want to be bothered with rats and mice buyers..
Distributors do ..
Import the containers .. Devan.. Store.. and deliver to order..
Mainfreight maybe ???
Sorry .. Not explained well ..
Manufacturers working in with Distributors.. All on line..
The possibilities are huge for the distribution industry..
All bad news for the retailer..
Right now that may be how it is done (I wouldn't know) but is that how it will be done in five or ten years? That is a very long time in this age of rapid change. We should mark our diaries and check back in 2017 and 2022...
The big appliance dealers won't be worth much if they aren't making a reasonable profit. I'm going to suggest that is why WHS got such a good price. I think there needs to be consolidation. I think WHS should merge the brands. Do they need Noel Lemming and Bond & Bond? They would cut costs dramatically by just having one customer facing brand. I'm not sure the benefit of brand loyalty is worth keeping an entire chain going?
The market doesn't seem to be liking the news. Down again today.
[QUOTE=emearg;387640]
The big appliance dealers won't be worth much if they aren't making a reasonable profit. I'm going to suggest that is why WHS got such a good price. I think there needs to be consolidation. I think WHS should merge the brands. Do they need Noel Lemming and Bond & Bond? They would cut costs dramatically by just having one customer facing brand. I'm not sure the benefit of brand loyalty is worth keeping an entire chain going?
Consolidation will happen with buying,distribution,head office and other overheads,but they will keep the retail brands.
I dont see the point in the two brands. Aren't they competing on price with themselves (I am sure B&B would price match NL and vice versa if you got a sale person to offer a discount). And take Newmarket for example. Stores across the road from each other means rent/wages and other opex is twice what it should be.
Yes true ,but it is the buying terms,distribution where the costs are.Same warehouse can supply Warehouse,Warehouse Stationary,Leemings and Bond and Bond.
You will note Smiths City does this with Smiths City ,Power store,LV Martin and Furniture Concepts and Clearance Centre.They take out back office costs.Often same suppliers,often different models.
Electrical retailers get big end of year extra rebates and discounts depending on volume of sales.Without Leemings WHS had difficulty getting good TVs etc to sell.
You will watch Dick Smith go out the door without a big brother.
It's logical to assume that Gresham Group bought NLG with the intention of flicking it on in early course, possibly NLG and B&B separately if the right buyer(s) came along. And why go to the trouble of expensive redundancy payouts and system rejigs if that's the intention?
So then the game changed and no-one was interested and it became a matter of cutting losses and exiting the scene. I'd question whether there is much brand loyalty involved, except where the Fly Buys membership is involved but that can be handled. LV Martin was a bit different, having a strong franchise in the Wellington region but I doubt whether NLG or B&B have any similar strong positions. Happy to be put right if this is not the case. So I now expect WHS to have to bite the bullet with store mergers and closures if they're going to make this acquisition pay.
MacDuffy - agree with most but NL and B&B would never be separated. there is a reason McD's has kept its hands on the georgie pie name for 20+ years after closing - you dont give a competitor an established brand.
I foresee no pay rises and no hiring at NL/BB for the next few years as they let natural attrition and store mergers take care of the below management staff level. Management should see what they've got coming and find another job if they can. Leases in duplicate or non prime areas wont be renewed.
Point taken CJ.
My musing on the possible separate sales of the two brands envisaged a scenario where two buyers appeared for Gresham to negotiate with. Unrealistic as things turned out, of course!
Still possible that WHS will rebrand the B&B stores, keeping B&B as a non-operating subsidiary. Unless their market research tells them not to!
Hi there,
Has anyone thought about the possibility that WHS in the future may roll out Fly Buys across their entire brand range eg. Warehouse, WH stationery, NL/B&B.
That could potentially become a game changer.
Umm, the uneducated masses out there would be heavily bombarded with WHS advertising promoting flybuys and therefore much easier to influence.
TBH I would highly doubt that WHS would introduce flybuys seeing as they already have their own bizrewards scheme (even though their bizrewards scheme is a crock of sh*t)
Flybuys would bring in the punters though IMO
You could be right but for this purchaser receiving loyalty rewards that I may or may not redeem (before they expire) on something I may or may not really want doesn't influence my spending at all. I look for cash saving up front. Or at least some other benefit.
Who covers the cost of the Flybuys? Does the retailer contribute? I presume so in the following comments...
Such rewards are never free. i.e. they are built into the price.
Do WHS really want to increase their prices slightly to cover the cost? Or will they accept a lower margin?
What would draw this punter back to WHS is quality. Quality product, quality service and quality support. I got sick of buying crap and no longer shop there apart for pet food on special. The last straw was a nice quite expensive stainless steel jug which developed a serious fault. I think it shorted internally. It took out the oven fuse which it was plugged into. 30 Amp I think? Anywho, I took it back with receipt in hand. I had big argument with the girl who said the warranty had expired and it was all too bad. I explained that it wasn't a general wear and tear issue (like the lid breaking) but it was a series internal fault. She wasn't moved. I requested the manager's ear. The manager granted the refund without any apology, nor any regret for the fact I had to drive 20kms to get a suitable fuse which wasn't cheap! That was it for me! Too many strikes and they were out.
Recently I found the box in the attic and noted the product came with a two year warranty. So as well as the girl being stupid and having a bad attitude the WHS system didn't even have the correct warranty loaded for the product when she scanned it.
Why would I shop there when I can go to Briscoes, buy better quality product and when things go wrong I can talk to somebody pleasant and return an item without even having the receipt (was a present in the example running through my head right now)
Right! Rant over! The Warehouse needs to up it's game and buying Noel Lemmings ain't going to help one little bit!!!
Emearg:
- Flybuys can convert into AIR airdollars so they will be used (if you fly a lot)
- cost is on the retailer so agree, not good for WHS
- I see the opposite to you re quality. WHS is where you get a bargain. NL allows them to target the premium market while keeping WHS focused where it should be.
The warehouse has been going downhill since the 1990s. Back in those days the shops were crowded and you really could get a bargain.
Not anymore
Yes that was one of the considerations I had with my flybuys comments the other day. But i would doubt WHS would add flybuys - the costs would be too great and they don't need to attract loyalty. But i would expect they would keep it for NL as it's obviously an added value there.
Flybuys and any other loyalty rewards system has a built in factor into the price we pay for the goods. Myself I would much prefer a cash discount.
The wife and myself have been collecting flybuys for many years, and by the time you have accumulated sufficient points to by bar of chocolate they expire. I am guessing this will apply to many others also.
Last year when I upgraded my TV at N.L. when asked if I could forgo my flybuy points for a cash discount , he said this couldn’t be done, but would offer me a large discount on any other product in the shop I may wish to purchase.
They only winners here are the loyalty rewards operators.
Interestingly I see the Flybuys as a negative in some cases. For some they will draw in the customers and for others that will be repelled. Your comments support my thoughts. Last time I wanted a TV I went to NL and tried to get the price down but they stuck to their guns on the basis they offered Flybuys and it was a wonderful deal because of them. I didn't agree and went and spent the money else where.
Good for some, bad for others. Worth offering on that basis? Maybe? Maybe not?
When shopping recently I was in a big box retailer and noticed another customer scanning the barcode on some fridges. I got chatting and discovered he was using his smart phones pricespy application to find the lowest web advertised price. It's available for Android and iPhone. A nice quick way to figure out how much you can squeeze the retailer. NL is usually at the expensive end of the list. Probably because they offer Flybuys. They need to keep up and adapt to different ways that shoppers find out information.
LOL, the flybuys aspect is a very interesting aspect part of this NL purchase isn't it?
One does wonder that if WHS were in future to capitalise off their NL purchase by rolling out premium products across their entire WHS brands, not just red sheds but the stationery side as well. Also consider the supply-chain aspect - Would WHS because of their NL purchase be able to secure larger quantities of more premium brands at lower direct costs and keep retail prices the same or lower retail prices of premium products to match those of current WHS brands?
Would WHS use the store within a store concept as well? ie. walk into WHS to purchase general goods only to have people enticed by shiny TV's in the NL section of WHS?
Or vice-versa with someone coming to buy a blender or new food processor and at the same time walking over to buy some cheaper WHS brand food&drink small goods, or buying a vacuum cleaner in the NL section and then decide they want to purchase a new rug for the living area?
Of course any real smart consumer would take their time and shop around before buying or more commonly buy online, ignoring the marketing aspects of flybuys. But then if that sounds like you then you're probably not WHS' target market then are you?
What I don't get, is why not just shop online? In other words, why are you in a shop at all?
This "price comparison" stuff really isn't a comparison at all - you're comparing someone that has rental, stock and staff overheads to someone who does not!
To utilise those extra overheads, then force a comparison against someone who doesn't have them really makes no sense to me unless people don't see any value in shops. Which takes me back to the original question, if there is not value in shops, why not just shop entirely online?
The only other rationale, and I must admit the welfare state pops into my head at this point, is that a lot of people like the convenience of shops, expect to be able to look at / touch / try things in a shop but then buy online for the rest of history, they know deep down that if everyone acted like them the whole system would fall over, but are betting that not everyone will!
I will....bow out at this stage and avoid getting philosophical.
So the question arises...were you smart enough to invest in Amazon early? And also could you put on your stargazers hat and see WHS as an early genesis/uptake of the NZ version of Amazon. I could certainly see that happening and could anyone else position themselves in that place....cant think of one. WHS is a longterm BIG buy for me.
The reason why NLG went with and kept two brands often right beside each other was that they did some market research and found out that the average shopper goes into two appliance stories before making a purchase. They also ensured the two appeal to slightly different groups and stock slightly different products and/or brands. I would judge this a pretty successful strategy based on NLG's 25% market share in a crowded market. Most consumers would have no idea that Bond and Bond and Noel Leeming are owned by the same company.
Also all this analyst talk about a low margin is a bit silly. Yes margin is important but so is the quantum!! 1% margin on a $1000 TV is worth more than a 10% margin on a $50 piece of furniture. Even though both will have similar transport, storage and display opportunity costs.
I will tell you all now how the warehouse should proceed , it is in my opinion the only way they can make this work.
They need to sell everything on a buy now pay later basis , they need to ruthlessly exploit the less well off sections of society , sell them stuff on the never, never at exhorbitant interest rates. These are the people who cannot buy online because they dont have the money to buy the products outright.
They should also move into the rent to own sector like thorn group . From there they can start to move into the lucrative short term loan market "payday loans"
Will they do it ? who knows , but if i was running the company i would be taking advantage of my greatest asset , the multitudes of poor and financially challenged masses that walk into my shops every day
You should check out Pricespy. Here is an example http://pricespy.co.nz/product.php?p=1131821
You will note it is comparing lots of retailers that have stores. So it seems a fair comparison to me....
That would be interesting!
Such an approach would certainly change the brand image!
The extra overheads in selling stuff to people who can't or won't pay may be more undesirable than you think. Huge numbers of staff required to chase the debts, most of which end up with debt collectors and are never recovered. There is a segment of the population (a chunk of your new target market) that buys stuff with no intention of ever paying. That is what they do. Different names, addresses are used on a daily basis. I say this having done a bit of credit recovery work for a large telco in the 90's. So perhaps things have changed with improved technology? I suspect they haven't though!
Think of the huge additional working capital requirements. How much stock to WHS have at any one time? Imagine if most of that wasn't being paid for for two or three months? If at all.
Still, it would do wonders for debt collectors and softball bat retailers...
Really?
I must confess, "hallelujah" isn't the first word that comes to mind when I enter a Warehouse store. The first thing I notice is that the exact sort of people that Ratkin et all would seek to attract, already in the store, already spending money they don't have. All he proposes is going after their existing core customer more ruthlessly.
I don't claim to be a religious person, but if I wanted to get into heaven, importing a whole lot of stuff from third world slums and selling it to the people who no longer have manufacturing jobs would not be the way I'd choose to go about it.
It is still tough out there:
http://www.stuff.co.nz/business/8150...-Harvey-Norman
Pretty slack reporting here .... if they had a look at the other Harvey Norman com panies as well they would have found Gerry et al would have done wuite well in NZ last year .... not this profits plunge sort of headline
One of NZ largest property owners as well .... that helps
Agree .... but then that applies to all who all own big chunks of retail related property
Bunnings is a good case .... haven't made much at all in NZ since they came here with their big boxes ..... but then they hocked off a few sites last year to more than willing investors
Harvey Norman is difficult to understand as each store is made up of 3 or 4 separate franchises,ie one for electrical,one for beds,one for lounge suits.The master francishor GH owns the brand,and charges overheads for buying,rent,promontion,hire purchase etc.So while GH makes a quid the franchisee's may not.
I noted PHB [pharmacy brands] increased their profis while the pharmacies they supplied, revenue and profits were down.
Macduffy's post is "on the money."
Well I'm surprised no-one has thought WHS worthy of a post in recent times. Look at the recovery in SP over past 6-8 mths, up 40% from about $2.50 to closing $3.54 Friday. That's spectacular. In for a modest sum as dividend play which is what this coy is all about and currently returning gross 8%. Half yr report early March will be all revealing and if we believe media reports on retail numbers SP might have room for improvement. Thoughts anyone?
Not that spectacular when compared with some of the others.
Check out post 20 for comparison posted a week ago:
http://www.sharetrader.co.nz/showthr...to-be-in/page2
Personally I won't be touching them again (owned them about 5 years ago) as they bought a new noose called Noel Lemmings. Their old noose was in Aussi. They should stick to their knitting, but I'm not too sure what that is anymore...
emearg
That post you referred is out of date as far as WHS is concerned, showing 20% gain when in fact it is now 40%, so I say again it is spectacular. If you expect to better those sort of gains over 12 mths you would have to be hard to please.
LOL you mean KFC I assume since they are the chicken kings. Hey its a good fit...I can see KFC outlets replacing the Gardening section in WHS...partnering is the new growth. Zed energy station near us just had an overhaul and added a Burger King drivethrough..very busy. So I'm guessing that recent surge in SP for WHS is a stealth takeover by Restaurant Brands.
Well naturally the numbers have changed as a week has gone by so here are some fresh numbers for you:
According to NZX.com today, WHS has gained 37.74% in the past year. BGR 64.24%. HLG 41.56%. PPL 80% etc
What I or you expect isn't the point.
The point is that the rise of WHS hasn't been as spectacular as most of the other retail stocks.
So why get so excited about WHS? Why not get excited about retail stocks in general?
Do you believe WHS has a lot further to climb when compared to the other retail stocks? Why?
Good lateral thinking there Vaygor1 ... Phar Lap and chips and hold the mayo will be a challenge for the marketing dept but we can do it. PS dont want to add to the conspiracy theorists armoury but have you ever seen a breakdown of the geographic proximity relationships between Maccas, BK, Mad Butchers and well known racecourses? Can it be coincidence?
Haha. Brilliant piece of work there Birmanboy.
Actually, I sat next to Peter Leitch in Christchurch at the 1st ever Warriors match in history - a pre-season game against Canterbury 18-Jan-1995. He was eating a BK Whopper wit cheese and even back then he managed to get a bit stuck between his teeth.
emearg
If you took the time to correctly interpret my original post it was in reference to WHS as a dividend stock, still 8% at this newly elevated level. Most of us can't be in all stocks (perhaps you can) and if divvy is your thing WHS is still an OK bet and likely to get better should they turn the business around as it looks quite possible
Agree. On the ball and above average outfit Torpedo 7.
This is the 2nd "capability" acquisition Warehouse have made. Time will tell if execution is successful but it seems their strategy is to fill the gaps. Predictions for the future:
Better electrical product range or Noel Leeming branded stores within Warehouse Stores (maybe even combined with some Noel Leeming store closures)
Improved online offer from Warehouse
They say bad news comes in threes. Do acquisitions?
No management consultants. Just a great CEO in Mark Powell.
TWL cannot expand into Australia or grocery anymore and the growth of Warehosue Stationery is slowing a bit with less new stores year on year. So going into more branded products in electronics and now a bigger foothold with online shopping is the most logical place for expansion as well as store refits which is constantly on-going.
WHS announcement just gives you enexpectorated error. Makes you want to spit.
Good div 15.5
Sony TV's to be sold at the Warehouse and Bond and Bond to Go, The changes are starting to take place. What next???
WHS have just gone from spectacular to stellar (and more to come)
Hear that rumbling...? Thats me purring.Last two divs have returned annual 8.67% yield on my investment...plus imputation credits. Long may it run.
[QUOTESo I now expect WHS to have to bite the bullet with store mergers and closures if they're going to make this acquisition pay. ][/QUOTE]
From my post of 13 December.
Speculation becomes reality.