I'm a man of many parts, some think I should depart, lol
I've still got that flash yellow jacket you off loaded onto me tho.
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They need to slash and burn Noel costs like they did in the warehouse.
Noel Leeming Q3 sales up 36%
JB Hi-Fi NZ Q3 sales up 16%
Wonder whose doing better
$3.36. .. delicious.
The Warehouse stops sale of fireworks
https://www.stuff.co.nz/business/125...e-of-fireworks
I've seen this guise before. Long ago when I was living in Canada, we use to have many Canadian retail outlets. The short story was, Walmart and Costco came and wiped them all out. The move of doing mergers & aquisitions failed. Why? Because the product supply chains hold the key.
Harvey Norman supply chain vs TWG? I went appliance shopping 2 years ago and went to all the places. Ended up at Harvey Norman because they had better range, better models, and most of all, more competitive pricing. Oh and their floor salesman told me be careful, not all models are the same meaning a Bosch or Westinghouse brand appliance sold at Noel Leeming were sourced from different outlets. He was correct, the Harvey Norman models were sold throughout Australia and other places around the world. The Noel Leeming appliances, many were models only found in NZ. When I think about repairs and sourcing parts... i'm gonna go with the one that is most widespread sold.
Few months ago at a Warehouse Red Shed I saw an Akai brand fridge/freezer. I was like Holy Moly, "When did Akai, a Japanese electronics branded company started making whiteware appliances?" LOOK!
https://www.thewarehouse.co.nz/searc...search-button=
What no more babies:confused: population will def go into decline.
P S i have two collectible double happy crackers, you know the ones that would almost blow your fingers off as you waited until the last milliseconds before you threw them ; back in the 60's. Sorry not selling at any price
Where have you been the last 20 years? Akai went broke 21 years ago (and their "Akai professional" Spin off 16 years ago). That's what's happening with HQ Japanese audio equipment.
A company in Singapore bought the rights to the brand name and is leasing that name to whoever needs a name for their product (and happy to pay).
Anyway - we do own an Akai freezer (Chinese production :) bought from the warehouse - and it works quite fine ... very quiet and energy efficient - much better than the NZ made freezer we used to own before :p;
Looking back at the appliances we had over the last 4 decades or so - Bosch appliances are typically short lived and difficult to use (ask my wife), no matter where you buy them. We owned too many of them over the years and the only thing you can rely on is that you have to replace them early. Same is true for Fisher & Paykel - no matter where you buy them, though when I opened the last F&P dishwasher we had I found out that the motor was made in Czechia and the electronics in Italy ... while the frame was made in Germany. What shall I say - the frame was still good when we ditched it.
In essence - my experience is that with appliances neither price nor famous brands are in any way correlated with quality. Maybe Panasonic is a bit better than others - and we do have some of them, but it doesn't matter where you buy them. Means - you can as well buy the cheap stuff at the warehouse ... same chance to get something which works reliable and for a long time as when buying with any of the so called up market chains, unless, of course it is a Bosch - they will always die too soon:):
I've always insisted doing repairs than to dispose and buy new which is the reason for buying from Harvey Norman - regardless of brand, so I guess the importance is sourcing parts. I do agree that reliability is pretty much the same for all appliances and long gone are the days where you had fridge/freezers that lasted over 25 years (our Sears Coldspot / Whirlpool brand lasted well into I finished uni). Now it seems what ever brand it is, you're lucky to get 10 years. Our top of the line Bosch washing machine is on 11 years now and the only failure I had was the plastic door latch (part easily found on TradeMe $70). Overall i'm not fond of European stuff. Our Diedeitrict induction hob can be flakey at times (random Error off codes). We had a Samsung side by side fridge freezer that eventually died at 7 years. After 3 years, it had many issues like bad control boards, bad thermistor, and lastly refrigerant propellant leaked out of the lines (so no point fixing; compressor was Made in China). Nevertheless there ARE high end appliance brands marketed in N. America that last a very long time (ie SubZero / Wolf) from their long use in commercial restaurants. I've not seen these brands in NZ and perhaps way off the affordability mark here.
I just found it interesting how The Warehouse could sell the 'higher end brands' when the impression is they sell a lot of junk there. I do have a Veon 21" TV in the campervan I bought from there ; only because it had a DC input voltage the same as the battery 12V. Rarely used but still in the van and 6 years going.
Pleased they not selling them, noisy bloody things. 60S and 70S was hey day for backyard bonfire night, in UK we even had a special programme from the hospital showing all the burns victims, fun was had by one and all. We used to roll tyres down the street to build a massive bonfire, then all go down to the shops with our stuffed guys, to do penny for the guy. By midnight the fire engines would be out as everything went tits up.
Rodney?, or Ron?
or Billy Field?
there's nowhere to hide in that!
.
Electrical and electronic goods had the largest increase, up 8.4 per cent, followed by recreational goods, up 16 per cent.
https://www.stuff.co.nz/business/125...economy-afloat
warehouse products leading the way
Awesome!!!
Maybe its just a young wives tale, but I've been told those old appliances usage doesn't get measured by Smart meters.
I welcome expert opinion on that?
I get the feeling this sell down was a bit rushed, why do it on a Friday?
Anyway, happy to accumulate shares today on the weakness.
Dipped down to $3.34, some people got a bargain
Yeap, I "hounded up" quite a few at $3.36, happy with that. That's going to be the gift I give myself that keeps on giving back. Bit annoyed with myself though that I missed out in the placement on Friday...I never thought they would go under $3.50. Oh well, fixed that today.
I was very happy to get in at $3.37.
I was only a week away from buying another parcel so I can thank foodstuffs for saving me some money at their loss. Won't be long before they are back over $3.60.
This is now a great holding stock which is 100% going to grow. Their online store TheMarket has been a great addition and it's following will continue to grow with word of mouth and advertising.
Personally I missed out on the Friday and Monday specials. Looks like there is now a better spread of investors holding shares instead of just one big holder. Sir Stephen please take note of the new happy holders
Thanks,
Thats the way I saw it too, like water flowing through a water meter, it doesnt matter where it leaks to afterwards, its been measured.
https://www.stuff.co.nz/business/ind...arly-next-year
Costco has started recruiting managers for its Auckland superstore ahead of its opening early next year
Quote:
Costco has opened 12 stores in Australia since 2009, selling everything from fresh food and groceries to diamonds, and even coffins.
Costcos typically stock about 3500 brands, but the retailer has not yet given any details about which Kiwi brands it will stock.
In Australia, Costco prices were 25 to 30 per cent cheaper than at other retailers and the same was expected for New Zealand.
Enough to make Foodstuffs run from WHS at any price or not ? ;)
And then there is Amazon - with a large base down under in Oz too ..
The time horizon would be years for that to evenutuate if it ever did for Costco and thered be inefficiencies in Costco speading themselves along the length of the country. The market is small fry for them to invest and compete with WHS beyond the main centers imo.
As I mentioned before, Costco is entirely a different "shopping experience" than what TWG could offer. Promotional food sampling, name brands (and just you wait when Costco imports direct with their large US buying power). Where I grew up, no one would of thought Costco would come for a small town (of 70K population); what competing retail businesses didn't understand is Costco attracts surrounding communities to drive in and shop. Wellington can easily have 2 Costco warehouses, 1 near Porirua and other towards Lower Hutt. Being like Walmart, they strategically pick locations where people are willing to drive out to. (People will when prices are 1/3rd less than other retailers).
I also mentioned The Warehouse 20+ years ago also had issues in securing brands and product lines as other retailers had contract agreements. Costco doesn't need that ; the WILL import direct overseas from name brand suppliers. Oh and Costco's return policy is best in industry ; they also force the distributor or supplier to take back broken defective items or for warranty.
That's great, 2 in Wellington is not a concern.
Sounds amazing. NZ customers have been long enough ripped off by the duopoly of Foodstuffs and Woolworths. If it is true that Costco is coming and better and cheaper than the resident supermarket bullies - then they can't come fast enough.
However - while I always thought that the likes of Pak'n Save and still worse Countdown / New World are ways overpriced (compared to supermarkets in e.g. Europe or North America) - I never felt the same about the Warehouse. Warehouse sells sometimes better and sometimes lower quality, but the price is - compared to other major markets, what you would pay there as well.
Lets hope that the Warehouse and Costco together manage to teach Foodstuffs and Woolworths a lesson - shall we?
Anyway - it would be good news for consumers ... if it really comes true. However - don't forget - they talk for the last 20 years about Aldi coming to NZ, and so far they didn't. Talk is cheap. Probably learned already in Australia that selling good quality at a reasonable price is not so easy in this part of the world. Aldi's sells in Germany good product for low prices. In Australia however - while a bit cheaper than the competition - they sell mainly cr*p.
I am sure Foodstuffs and Woolworth are shaking in their boots - and certainly no reason to worry for the Warehouse.
Warehouse has how many stores in N.Z. ? Two hundred and something if my memory serves me correctly. Answer is sure to be in here somewhere http://nzx-prod-s7fsd7f98s.s3-websit...579/345273.pdf
Say Costco does open one store in Westgate, so what ? I live in one of the best suburbs in West Auckland but its still an annoying 30 minute drive each way (outside of peak hour traffic, much more during peak hour) to see one of my best mates in Westgate. My point is, travelling within Auckland is now a nightmare no matter what time of the day. Took me 15 minutes each way to drop off my granddaughter to the next suburb from where we live last evening...(thanks for the hospital pass Mrs B). The traffic and cost of commuting in Auckland is diabolical.
Sure Costco will have some pull in Westgate and immediate suburbs surrounding but there must be dozens of Warehouse suburban stores in Auckland and my closest is about 7 minutes drive away. Time and commuting cost is also money.
90 Red Sheds 488,000 sq m of floor
164 other stores
90 stores is about saturation for NZ ....most efficient level is probably a little less than 90
There used to be a rule of thumb retail analysts liked quoting about Red Sheds ....the more footprint they added the less efficient they got ...like make the same or less profit.
They actually closed 3 TWL stores last year, and opened 1. Same store sales revenue was actually up 6% for TWL.
Aim is for 40 of those 90 TWL stores to have a Warehouse Stationary store inside them once that SWAS project is completed.
makes me wonder actually how the revenue is broken up from those. For instance i’m guessing warehouse stationary revenue is not included in TWL revenue for reporting purposes, meaning the revenue from those existing warehouse store locations is perhaps actually increasing substantially, but it’s not apparent in the top line reporting, but would be contributing a large gross margin improvement.
Costco opened up in my old home country a few years ago, in a city or rather 3 cities with a combined population of around 200,000. About 75% of households now have an active membership. It completely changed the retail landscape and lowered prices on almost everything.
But most affected were petrol retailers when Costco started supplying petrol MUCH cheaper than others, so much so that people would drrive there for the petrol discount and do their shopping at the same time, also cheaper than competitors.
The other surprising losers were wholesalers/importers.. Nearly all food service businesses, being your local dairy, restaurants, ice cream parlour, you name it, found their ingredients much cheaper to bulk buy at Costco than from previous suppliers.
So I'm less worried about competition to WHS than I would be for holdings in ZEL, supermarket chains etc
Where I grew up, Costco came in 1993 and my uni friend (that started working there since college) pursued a career in accounting. His work at Costco on the floor moving stock around, doing customer support, and eventually into accounting. Shortly after graduation he was recruited at head office in Canada back east and that was the last I saw of him. During the last visits together, I told him I was on my way moving to NZ and showed him my change in tax status with Revenue Canada. It was interesting times because most Uni students don't get the chances we did by moving away in great distances. Anyways, I asked him (this would be around 1999) why has Costco not pursued into opening up in New Zealand? The inside info he told me was head office was considering Australia to opened up (note at that time Costco Seoul Korea and in Taiwan was already operational). He told me that the problem (and he was doing account at the corporate head office level) was that NZ is a very small market place and worse of all, the supply chain would be a difficult issue in that pretty much, their whole product lines would have to be imported into NZ. For those not familiar with Costco, not every warehouse has the same product line. Where I grew up they sometimes sold snow mobiles but you would not find that in say Vancouver Costcos. I'm not sure how this would reflect in NZ but if the local supply chains prove difficult, there may not be much of a go here if the prices are not low enough. We all know the duopoly food retailers in NZ have a very tight lid on the supply chain. Likewise with many industries like Fletcher building.
Membership has benefits and for good reason. My uni friend informed me that the annual membership fee is a big revenue maker and I believe it. But there is a key reason for this approach and I will attest to it. What it does it filters out those who are really Costco shoppers and those that are marginally not, and I hate to say it but it gives an exclusive level of shoppers; typically those from higher incomes. Where I grew up you NEVER saw and bums or those on the low end shopping in Costco as for starters, they catered to high volume LARGE BULK SIZE shopping - rarely you would walk out spending less than $200 because items like toilet paper were sold in such large size that you would only buy it once every 2 or 3 months. Those on the low income don't have that kind of level of spending, nor would bother paying for annual membership. But the savings are there. In the same hometown where I grew up, Costco brought in petro station and the impact was severe. As in the previous post the price difference was considerable that people spending $150+ to fill up their pickup truck knew the savings was enough to drive from 1 side of town to Costco (figure 15% price difference). My friend told me it was a god sent when Costco opened up their petro stations because for several years the locals complained about price fixing by all the petro stations. Now that the table had turned around, they had to lower prices to be more competitive but I would say during a course of 3 years, half of these petro stations closed up.
@ Beagle:
Again, not sure how this flows in NZ but it will be interesting to see if Costco will manage some price control. I would imagine most of the items would be imported but here's one key distinction that other retailers don't have. Costco is known to sell the 'surprise factor' of items on the floor where you just WANT IT but know no one else in the country has and because of this, you can be many will make that long journey to Costco just to buy it.
As for online purchases, it took a very long time for Costco to offer that service but the problem is more to do with regional supplies. Not every Costco sells the same item so what you would see online would be very generic items.
So I contacted WHS investor relations yesterday enquiring how the revenue for Warehouse Stationary Store-within-a-store (SWAS) is reported at earnings, and got a reply:
‘Thank you for your email enquiry, all Warehouse Stationery revenue and results - both standalone stores and SWAS - are all included in the Warehouse Stationery results.’
Needless to say, this dramatically changes how I perceive the TWL segment results.
TWL revenue (“The red sheds”) was up 6% on a same store basis last year. But this excludes all revenue from warehouse stationary stores that have been located inside TWL stores. Therefore the true amount of same store revenue growth at The warehouse locations is significantly higher - and supports the increasing company wide profit margins.
WHS does not have to pay much of anything extra in operating costs to operate those SWAS - other than a couple of extra staff on duty at each location - but brings in significant amounts of extra revenue at those existing locations. It doesn’t show up in TWL segment results, but it does on the WHS company wide profits.
Looking at warehouse stationary alone, I would say the target is to reduce costs there as much as possible by eliminating as many standalone stores as they can and replacing with SWAS and online fulfillment, while maintaining select standalone locations in major business hubs. If I had to guess I think warehouse stationary revenue growth will be low, but profits will increase significantly.
Although would be interesting to know how they apportion costs of the SWAS locations. For instance is WS segment taking on operating outs of a shared location based on their share of the buildings footprint? If so, then the increased profits might show up in the TWL segment instead (as its share of a locations operational costs fall)
there are currently 20 SWAS, and they are aiming for 45 (about half of red sheds locations)
The Warehouse is in the herald ... and their name is mentioned in the same paragraph together with amazon, alibaba, wechat and weibo. Big digital plans, if it works out great things to come.
https://www.nzherald.co.nz/business/...I3DEN4HJ5EOZQM
[paywalled]
They always a bit coy how much in the way of revenues TheMarket generates.....rather tout the number of skus they have etc etc
But if you look at their sales reports and assume that Other sales is as they say in small print, being 'Other sales include 1-day and commission and other revenue in relation to TheMarket.com' then TheMarket.com not doing too well
Q3 revenue/sales being $37m this year v $41m last year v $44m the year before .....hmm
Suppose it is really a case of building it and then the punters will come in droves ....big time
Interim Report Segment numbers show declining sales /revenues and declining losses
Breakdown of these 1-day sales could be interesting
https://www.nzherald.co.nz/business/...3DEN4HJ5EOZQM/ Paywalled
Interesting article articulating their growth strategy.
In that Herald story - Grayston says the group can dedicate more time to what he considers the fun stuff
Plenty of spare cash and doing fun stuff ....not always in shareholders best interests
I think they've done a good job of turning this ship around so far and their prospects for further rationalization and enhanced operational systems are good.
have you tried just asking investor retaliations how it works? They were very good about responding to my queries last week about how warehouse stationary revenue inside warehouse stores was accounted for.
Isn’t the market purely a digital storefront? They don’t have any inventory themselves, and instead the sales are all from either other WHS businesses (TWL / WS / NL / T7) or from 3rd party sellers (for which they get a commission on sales)? I guess the question to ask is if WHS assigns revenue to the market or not as commission from other WHS businesses.
I agree. All the fundamentals are looking good. Plus, what will they do with their cash?
Just looked at Nick’s horoscope .....it’s all looking good for his ‘business success’
A blast from the past will come and help you in you setting long-term vision and goals for your business. Be open to the possibilities! This is due to an activation from the Gemini sun and North Node making a close connection in your eleventh house. This is the perfect time to tap into past contacts and set up ways to reconnect. Positive leaps and bounds can be made at work right now. Transformative communication could come any day. But whatever have fun implementing your strategy
Share price 4 bucks by end of month ......was $2.50 odd when Nick was appointed
85k shares @ $3.50 on sell side to clear first
whs to be included in NZ50 ....... next time me think. volumes traded each day now make it the best bet
Honestly mate, you have no idea what its like to get around Auckland day after day after day...it grinds you down to the point where you really can't be bothered and just shop in your local area. Quite apart from that is the cost of getting around Auckland. I might stop in there when I'm over that way visiting my friend in Westgate but if they're asking to to subscribe at $100 per annum just for the right to shop there....that's simply not going to happen and I think you'll find the vast majority of Aucklanders will feel the same way.
You would need a light truck to stock up at the one costco location too. Sounds like drudgery
$100 is nothing when you could save that much on a $1,000 purchase at Costco. We are not talking about a 5 or 10% discount in savings here. This is at near wholesale pricing so you would be buying items that are near the price that well say Food Stuff or other big players that are buying at. Ie. the Fontera selling milk to Pak N Save can also sell to Costco - work out the profit margin?
NZ's habit of shopping 2 or 3 times a week to buy grub will have to change if they venture to Costco. Factor a budget of spending for at least 1 - 2 weeks of supplies ; therefore the hassles of driving out that way would be worth the effort. Of course those that live way too far away need not apply. For eg. in Anchorage Alaska they have 2 Costco places for a population of 280K.
What i'm skeptical is will the NZ producers sell to Costco? Many would have lock in plans with their current buyers though i'm sure over time that will change.
Costco is relatively new to a high consumption tax so they will enjoy that experience.
0% in US and 5% in canada.
most states in the US have a sales tax. Amount varies state by state.
also worth pointing out that the vast majority of Costco sales are from segments that WHS doesn’t have a large exposure with: food is most of their sales, followed by “Ancillary products” (pharmacy, gasoline sales), and then their two smallest revenue segments are what WHS would consider as competing areas: “hardlines” (hardware, appliances etc) & their smallest revenue segment is “soft lines” (small appliances, clothing etc) which is WHS bread and butter.
I would think it would be the food retailers that would be most bothered by Costco entry.
Please forgive me having a massive yawn here https://www.bing.com/images/search?v...t=0&ajaxserp=0
Heard it all before.... H&M, Zara, XYZ, ABC is going to destroy HLG.
The reality of life for most Kiwi families is they live one paycheck to the next and most are incapable of buying in bulk...ask me how I know...40 years of being an accountant.
I think this is really small potatoes in terms of its effect on WHS...lets get back to talking about WHS's really strong balance sheet and exceptionally strong cash position and its truly compelling investment metrics.
I bloody agree with that Beagle! Majority kiwis are not buying in bulk...most of kiwis live on payday after another...
And it's really hard to break into a small far away market like NZ. Companies like the Warehouse have huge market share in prime locations throughout NZ. Will little nz really excite Costco? I highly doubt it. Select locations in Auckland will interest them but not the rest of NZ imo.
Yes and as previously stated it's mainly food items where they offer savings.
You can't bulk buy a fridge or coffee machine etc.
Why is it that WHS staff do not check self service sales dockets like other retailers do. Is that a security risk for theft or do the electronic security pick it up. To me it seemed quite slack attitudes tonight with 4 staff members, some older, standing gossiping and with their back turned for ages.
‘The extra cost required to have multiple staff checking receipts in each store is likely far higher than the cost of any “stock leakage” from people not paying for products. It would be better for them to eventually install scales on the self service kiosks (Kmart seems to do it ok), and eventually employing AI vision cameras to alert staff to anyone who might not have scanned an item.
tis an interesting question, Bunnings always seem to have someone on the door - even early-ish Monday morning when there is NO-ONE in store. I can't believe that a person seemingly-permanently stationed on the door at such times is a good use of their wages (+overhead), but they still do it. I suspect redsheds attracts more than its share of shoplifters and it is not clear to me that WHS have ever taken much action to minimise it. in fact, WHS have gone the other way ... the ammount of self-checkouts much be taking serious wage costs out of the business (but at the expense of more non-payment). GLTAH
Being a recent new shareholder i may test this out, see if there is a clever system that sets an alarm off or something if an item is not actually purchased.
LOL, not much point checking the CCTV when the previous would-be buyer has left ... and the next person is at the check-out !
I remember Stephen Tindall explaining his philosophy when opening his very first store. He spent half his money ($25k was it?) on good cash registers (and the other half on stock) because he thought it was essential that he knew well what his customers were buying. Despite his getting the importance of good systems, the WHS of today always seems to me to have under-invested in smart business systems. Ie, they seem to have no idea of stock levels (lots of something, nothing of something else), what is available in any given store, and the payment terminals seem to be some quirky technology you see nowhere else, etc.
Maybe that's my prejudice shining thru ...
Plus he is simply too old to understand the technology of a self-service checkout :mellow:
I'm fine with the self service, except when I tried to scan myself it rejected me,so I crawled up onto the shiny little platform to get weighed,no luck there either,gave up,walked home then realised I had a bundle of giant Toblerone under my arm, ....... Then I remembered I was still wearing the Tradie pro underpants ,I had tried on,couldn't even find the changing room!.... Some days you just can't win.....
https://www.sharetrader.co.nz/blob:h...6-03910863255eWHS is in the middle of a vast improvement of multiple company wide upgrades, including inventory management.
Attachment 12590
Attachment 12591
Scanning will be so much easier once we get our 5G chip injected
Adjusted profit is what they get when they don't count all the bits they don't think matter (one offs and abnormals like consuyants, restructuring, redundancies, project costs etc etc)
Difference between reported NPAT and Adjsuted NPAT over the last few years >$100m
But Adjusted NPAT supposedly paints a better picture of things going forward --- of course there will never be any more abnormal stuff
Cheers W. I'm just getting my head around all this. The 'adjusted' bit must be what I'm missing. Otherwise, it looks like low PE, great divi, clear stella future forecast, and everywhere I go people appear to be still spending up a storm paints an awesome picture. I'm seriously questioning what's holding the SP back? Thanks for your reply. I'll keep digging.
Sussed it all out yet Mudfish
Below is summary over last few years
Just worry about the numbers highlighted in yellow ... and the trend
Amazing that the stuff that doesn't matter (adjustments) add up $180m over the years.
Come on mate to be fair nearly all the adjustment in the 1H FY21 is the wage subsidy, (which according to many on here was doing the right thing) and the rest was restructuring to get more efficient.
Many would claim both these things are positive for the business...(I don't need to repeat my view on repayment of the wage subsidy again...I believe we've all firmly stamped out our opinions on that already).
WHS is in my opinion, on a fundamental basis, the cheapest stock on the NZX. I would buy more if I didn't have a fulsome sized stake already.
what impact, if any, would ikea coming to nz have on whs?
For those mourning about WHS customer service....go n try briscoe....they are even useless.