Very cool. I take alot of stuff to St Vincent d paul. They welcomed some oil column heaters.They extract the oil and recycle the oil, and the empty heaters for scrap steel and raise funds for great community outreach causes.
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JB HiFi sales up 4.8% v pcp in March quarter boded well for Noel Leeming Sales for Q3 (Feb/Apr)
But Noel Leeming sales were DOWN 2.5% v pcp in that quarter (Jeez I was excited when I said maybe +8%/10% eh)
Did a bit of digging and if the Electrical and Electronic Goods Retail Sales ex Stats NZ is a proxy for the market Noel Leeming are participating in then it's not looking that good for Noel Leeming - by my reckoning they have steadily lost market share over the last 4 quarters (from April 2021) - market share fallen from being consistently about 25% over the last few years to currently being just over 21%. That's a big drop in share over a short time.
More of a concern is that a few retail commentators are saying that demand for electronics / appliances over the next year will soften and could be down as much as 5% to 10%
Soft market and declining share not a good place to be in for Noel Leeming, especially when they have basically been the key groth engine for the group
Wonder if Nick monitors such trends ..... possibly not as he has got lost in the metaverse looking for $4 butter
But isnt it a case of making more by selling less for NL?
Similar to MHJ. Profits all that matter
Gosh, I haven't checked your figures but that does sound quite concerning. As you say, Noel Leeming has been the jewel in the crown for this group for many years now. In addition, I guess the much lower $Kiwi is also a factor here that could hurt margins going forward.
Almost every other weekend I see front cover page advertisements in the Herald by Harvey Norman offering several years (sometimes five years) storewide, interest free. Maybe that's how the Aussies are stealing market share ?
I don't read the printed version of the Herald - saves me paying for all these adds. However - 5 years interest free, this is in a high inflation environment a lot of money they have to add to their prices.
Maybe customers are better off to pay $1000 now to the Warehouse instead of $2000 over 5 years to the rabbit?
Surely - they must charge really healthy margins to survive this interest free offer ... or otherwise the Warehouse just needs to wait for them to return their market share back to them on a silver plate :) ;
Seriously - who would buy at Harvey Norman anyway? Never found there anything of interest ...
A quick check of their websites this evening, didn't bother with price comparisons, leave that to others, shows Noel Leeming doing 30 months interest free and Harvey Norman celebrating 25 years in New Zealand doing 60 months interest free plus the instant gratification of a gift card to the value of 10% of your purchase. https://www.harveynorman.co.nz/
I think in tougher times like we're in now that sort of promotion they're running is probably very appealing to consumers in terms of "instant gratification" so its probably no surprise that they are taking / "buying" market share. Probably just as well its only Noel Leeming affected a little bit by this as Warehouse stuff is so cheap its ridiculous !
I imagine both are gaining share from PB Tech - which used to offer great prices with decent service, but nowadays the service is appalling.