When it’s ouch you resort to the ol’ ‘corresponding quarter last year was a boomer’ trick
Nonetheless WHS sales down 6.7% on pcp ….Briscoes Group sales up 2.4% in same quarter
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Torpedo 7 getting uglier and uglier …sales down 25%
Nick says - “Torpedo7 has not made the progress we’d hoped to see. We have a critical quarter ahead as we focus on driving its business performance recovery.”
Category strength in grocery sales continued, increasing 8.2% in FY24 Q1 compared to FY23 Q1, and making up 22.8% of The Warehouse sales in FY24 Q1
I looked at three Warehouse stores on Sunday looking for "Kiwiland Orchard Fruits",Eastgate,Barrington and Hornby.
I think their grocery section is very poor quality,Displays are poor,empty shelves, and prices generally more expensive than New World where I usually shop.
Giving more space to low margin products where their logistics are not coping,[ie out of stocks],looks as though it is a high risk.
WHS are not the only store saying they have an item "in stock",but when you visit the store they are "out of stock".
I notice at WHS checkouts grocery customers only have a few items in their trolley,compared with full trolleys at New World.
Down 7c or 3.9% on opening to $1.75.
Not quite the lowest price price they've traded at this century.....have been low $1.60's this year.
But don't worry, there is a divvy feed coming up soon.....;)
You've always had a good eye for the WHS and retail Jimbo.
The problem with TP7 is that it barely eeked out a profit when it was experiencing bubble-like retail conditions (driven by the surge in people buying bikes and outdoor gear when the country was in and out of lockdowns). And what did WHS do - it went on a store opening spree with the assumptions in the business case for those new stores likely based on some faulty/naïve per store revenue inputs.
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I find it instructive in retail to look at the sales per the number of average stores during a quarter (or whatever timeseries is available) and how it compares to trend. An issue where there is a severe correction in retail sales is that they don't simply revert to trend, they can fall below it as the segment works through its issues (a glut of bikes the issue here). Sales per ave store in Q1 FY24 now below where they were in the last Q1 before covid hit, despite inflation. Lots of people bought bikes during covid and they are long lasting durable discretionary items that don't need replacing often, especially when households are squeezed. That together with the glut of available stock creates a lot of short term challenges for TP7. No idea when it will be worked through but one would hope for TP7's sake it'll revert back up to trend at some point.
The problem with TP7 is that its stores are large with attendantly large leases and CODBs, its stock slow to turnover, and given the increased footprint in recent years the brand probably carries a higher WALT than other WHS brands, making rationalising the network slower and more difficult. It certainly needs some rationalisation and either through early lease exit penalties or just taking it on the chin until the lease is up, it will be an expensive exercise for the business.
terrible numbers. need to merge torpedo7 in with warehouse stationary and the warehouse all under one roof. ditch the marketplace esp now as they will never compete against temu
How about the one after and next after that ? .. that could be a bit of a worryhouse as all the boys and girls out there suddenly find their buckeroos not stretching anywhere near before ;)
When will pre Christmas sales start to try reign in the RedShed fiscal woes ? ;)
No sense in getting to own all the excess clutter for another year through to Christmas 2024 and then get to land a large shower of Red for the privilege of the exercise..