WOuldnt you say its overdue!
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Couldn't even make a go of running a finance business ....tried that and gave up after a few years
Yep, this was the Golden Age of the warehouse: Finance business, travel insurance, takeover of Australia and they didn't really know what else to do with all the money they made. Share price from memory above $6, wasn't it?
In Germany they have a saying: If an ass feels too well it goes out on the ice ...
Translated for the warehouse: "if a company does too well, it is taking unnecessary risks"
But I guess The Warehouse is not the only company being that foolish ...
I have been seeing ads for Bargain Chemist. Looks like they are direct competitor to Chemist Warehouse. It got me thinking, why don't the Warehouse get into the pharmacy game. They could rollout a pharmacy in each of the store locations. It would probably occupy on average 1/10 of a store.
In terms of capex, relatively speaking it would be minimal. Initial cost to hold inventory, perhaps advertising. No need to lease brand new stores. The return per square metre be a lot higher compared to fruit/vege I imagine.
I know they got fingers in alot of pies. One may argue they need to do less. But I see that they have an advantage over Bargain Chemist that's getting started, but also a platform to compete against Chemist Warehouse from I understand is doing well here and Oz.
This probably has no relevance with respect to investing as they are not actually doing it. Just a thought regarding company direction.
True. I wasn't even aware of their previous attempt and current relationship with zoom.
I just thought they could replicate the same business model as chemist warehouse i.e low cost seller/high sales turnover and leverage off their existing store network.
Oh well back to the drawing board haha.
Pretty crowded market segment currently with all the new discount pharmacies. Every Supermarket has now its own discounters plus the two new chains you mentioned. Doubt that another one pushing as me too into this space is likely to add lots of additional earnings. Cost however would rise - lots of compliance costs for pharmacies (yes, you do need qualified staff) and everybody gets a smaller slice of the same cake.
Might have been a good idea 5 (or is it now 10?) years ago, before Countdown started with their discount pharmacies - but now?
I totally get it. Even pK n save, no chemist but alot of what is stocked in chemists are available in aisles in their supermarket. W69 made a good point as well that they have made an attempt in the past but also have a current relationship with zoom. Suggest it is a tough market to crack. I was perhaps taking a simplistic view without considering the compliance cost and looks to be getting more crowded.
JB HiFi NZ sales Jan/March period up 10.8% on pcp
Their YTD (July/mar) sales up 14.8% pcp
Noel Leeming nowhere near achieving these growth rates ...Noel Leeming being taken to the cleaners
Interesting NZ sales much stronger than in OZ ...OZ sales flat in Jan/March