Hey Beagle …where’s your ‘maximising shareholder returns’ hat gone
Nice to see you standing up for the poor householders of NZ though
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Yes I thought that was a very interesting point as well - WHS group has a lot of existing prime spots for the creation of a nationwide supermarket chain.
It has multiple options as well, and could do whatever works depending on the site:
1) adapting existing stores (probably works best for mall locations where building development is out of WHS control.
2) building on car park space (and preserving parking either above or below the new store)
3) redevelop existing single level store site with a new two level structure.
4) instead of ending lease on the warehouse stationary stores upon integration into a red shed, alternatives are keeping the stationary site for smaller footprint grocery, or cancelling the red shed/stationary integration and instead going with grocery integration at the red shed.
5) new developments in areas of population growth see even more economies of scale for WHS group - could now have the whole portfolio in new big box developemnts: Red shed/stationary/grocery/NL/T7
6) in some areas a pure online grocery operation may be an option, especially in future as more people opt for online grocery delivery, WHS can integrate this into existing logistics network with some tweaks.
7) and of course the brute force approach: WHS can just build new grocery stores in existing key population centers where land is available. Maybe some areas where a smaller WHS was being considered for closure anyway.
Not sure why WHS don't just turn a portion of their stores into a costco/gilmores type operation.
Buy 5kg of milo cheap
Buy 50kg washing powder cheap
Buy 2kg corn flakes cheap.
Don't worry about perishables or short life goods. Who wants to buy their milk and broccoli from the WHS? Not me but I would buy 5kg of baked beans in a tin.
Do they? Never seen one in Auckland? All I see are bins full of single bag chips or chocolate. Then selves of single item shampoo, razors, soap etc. Scrap that. Can get all that from PaknSave cheaper anyway.
Got to go bulk bargain approach if they want to take on the super markets.
Go to your local gilmores store and you can by 2.5kg bag of corn chips. 5kg bag of cereal. This is different from the supermarkets. WHS should do this model.