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"Retailing is like shooting at a moving target," Warren Buffett said in 2005, questioning whether it' possible to save a retailer once the rot sets in.
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Quote from that story
"Retailing is like shooting at a moving target," Warren Buffett said in 2005, questioning whether it' possible to save a retailer once the rot sets in.
So I got a "Red Alert" email the other week advertising a Brother Sewing machine. The price was $159 marked down from $199.
The offer included a $50 cash back from Brother valid until the 20 February 2017.
I bought it online on the 11th of Feb, thinking it would take 2 days for delivery (which is states on the website). But a whole week goes by and nothing arrives, no delivery confirmation either. I'm thinking it may have gotten lost or missed. I emailed them about it, days go by but no response.
I called them this morning. Apparently it's in "pre order". Gee, thanks for letting me know, so how long until it's in stock? "Don't know". Great, the cash back ends today though, "do you want a refund", no lol.
Then I go back online. Now it's advertised cheaper at $155 and with no mention that it's out of stock.
http://www.thewarehouse.co.nz/p/brot.../R2145115.html
I'm done
http://i.imgur.com/Jdgz5P8.gif
Haha, all this talk of "operating model changes" - essentially they're just laying off 130 people.
https://www.nzx.com/companies/WHS/announcements/297310Quote:
The Warehouse Group - Operating Model Announcement Feb 2017
2:23pm, 23 Feb 2017 | GENERAL
23 February 2017
The Warehouse Group Confirms Operating Model Changes
Further to an announcement on 10 January 2017 which outlined changes to our Group operating model, the Warehouse Group Board is providing an update to the market on progress.
Over the past few weeks, The Warehouse Group has consulted with its teams located at the Group’s Store Support Office in Auckland in addition to some regional centres. Store teams do not form part of this process.
The consultation included structures designed to combine the leadership of both The Warehouse and Warehouse Stationery, along with the separate combined leadership of Noel Leeming and Torpedo7. It also includes moving the support structures that service these brands, to be Group-wide.
Group CEO Nick Grayston said the new organisational structure is needed to drive sustainable profitability and reduce complexity in a rapidly changing retail market.
“Our teams have shared their views on our proposed changes and we can now confirm team structures. Discussions with team members are ongoing with a view to supporting those who are impacted through a redeployment process.”
“Once the redeployment process concludes, with appointments made into newly formed roles, we will be able to confirm the number of people who may leave the business. At this stage, we are anticipating a net reduction of around 130 roles and we will be doing everything we can to support our team members during this time.” said Mr Grayston.
It is too early to quantify exact financial impacts to the Group, but estimates are net cost savings to the Group’s overall annualised costs of doing business of roughly between $15m and $20m which includes salary savings and reductions in areas such as external provider costs, operational and other overheads.
One-time restructuring costs are estimated to be between $10m and $13m which will be incurred in FY17.
Transition to the new structure will occur during the fourth quarter of this financial year (FY17). The cost reduction impacts will not be realised until FY18.
A further update will be provided as part of our Interim Results briefings on 9 March 2017.
Good luck to shoppers trying to find a staff member to help them with their product enquiry now ! Expect even longer queue's at the checkout's too.
That $20m will help the bottom line eventually ....if it all goes to plan .... and sales don't decline
$20m is equivalent to the gross margin on $60m of sales - about 2% of turnover -must be a hidden message in that somewhere
Just a note - previous cost cutting / efficiecy drives / improved productivity initiatives have done squat all for the bottom line .... so I wouod be asking Nick what's different this time