https://m.youtube.com/watch?v=F2AitTPI5U0
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interesting report put out by Credit Suisse about amazons arrival in Australia. Interesting kathmandu is seen as ripe for a pummelling even jb hifi seen losing 33% of sales wow myer possibly the biggest loser. poor old warehouse cant see how they going to survive in current form.
https://www.businessinsider.com.au/h...ll-hurt-2017-3
Has it bottomed?
I've worked with TWL (as a supplier) for a decade, and personally my thoughts are:
- Things picked up a couple years ago when the quality of their product range improved a lot (this is my opinion, I see some people here think differently)
- Red is a stable business but it does not grow, and its very hard to grow
- Financial services has been a massive fail
- Their marketing in the last year (particularly 6 months) has been terrible
- A lot of their acquisitions have performed ok, but they have realised zero efficiencies through the integration of even long term holds like warehouse stationary, which is part of the reason for the current head office cull
- Their last cull was only a couple years ago. Unfortunately they do not value staff or are able to retain key talent
- Kmart has been going well. As has Briscoes. Amazon is a big, big risk, although it will be a few years before they really start to takeover NZ I would suspect
I think if they can fix/sell/ditch financial services, improve their marketing, and realise some efficiencies in the logistics chain (and back office functions), they are a good bet from here.
They seem hell bent on keeping finance arm - they seem to think key to their future long term successQuote:
trackers
I think if they can fix/sell/ditch financial services, improve their marketing, and realise some efficiencies in the logistics chain (and back office functions), they are a good bet from here.
Improve their marketing - long shot that is
Efficiencies should be made but as you sort of suggest it never seems to work out that well. I can imagine the guy who bought paper for Warehouse Stationery now also buying the candles for the Red Sheds
End result - continuing disappointment
They simply lack any plausible cohesive plan to reinvigorate what is a very tired old brand. Believing they can turnaround the finance division against a wide plethora of other financial service providers seems a fanciful idea at best and far more likely to see an ongoing destruction of shareholder value. Far better to admit its a mistake and write the thing off but of course that requires fresh clean sheet thinking and I think that's beyond them...
Harvey Norman directors offloading shares. Is this the end for large retail?
http://www.nzherald.co.nz/business/n...ectid=11822326