Balance have you forgotton that Foodstuffs have Blocking stake & they are not going to let Woolworths do anything. So realistically with two blocking stakes The Warehouse is not going anywhere that would upset either Foodstuffs or Woolworths
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Balance have you forgotton that Foodstuffs have Blocking stake & they are not going to let Woolworths do anything. So realistically with two blocking stakes The Warehouse is not going anywhere that would upset either Foodstuffs or Woolworths
No need to rattle cages - Woolies already said they are interested if he wants to sell.
http://www.nzadviser.co.nz/newslette...warehouse.html
So far, they have played the better game - Tindall will not get the $7.15 Woolies was offering a few years ago but maybe, $4.50?
The question for Tindall is - what will WHS be worth in 2 years' time if Ian Morrice still runs the WHS into the ground like he has been doing?
Look at the Warehouse now - it's a confused entity with some seriously slow moving lines of stock - power tools which nobody buys (cheaper at Bunnings), appliances (who buys Transonic when equivalent branded appliances are similar in price) etc. Then, there's the awful display and totally disinterested staff. Yeck!
Balance would Woolworths be happy to hold 90% as no way will Foodstuffs let them have 100% That was why they both bought their holdings to stop the Warehouse getting any bigger in food & stop either Foodstuffs or Woolworths geting 100% of Warehouse. Because with 100% of Warehouse some stores could easily convert to supermarkets without much hassle.
Warehouse sales havedrifted from $1.88 billion in 2006 to $1.68 billion in 2010 and look to continue their downward trend this year .... and the shareprice has followed eh
All this in spite of stories about growth and how they are going to improve margins etc .... unfortunately Norrice et al don't seem to have grasped the fact that the Warehouse model is broken and that competitors like Bunnings and Mitre 10 now rule the big box segment and that competitors like Briscoes do a better job with homewares and that with all the appliance retailers cutting their throats Warehouse doesn't have a credible offer in this segement and that even the likes of Postie Plus and T&T do a better job with cheap clothes
I went into a $2 shop (or whatever they are called) and they even had better products than a Warehouse.
In saying all that just becuase they have the footprint Warehouse will still heaps and make about $70-$80m this year ... and most of this will go back to shareholders with a 24 cent odd divie so a pretty good return for shareholders
Maybe a bit more for shareholders one day if Foodstuffs / Woolworths work out what to do with their stakes but if I was them I wouldn't wait too long
WHS not a dog yet
Confirmation that things are under way to get rid of Morrice .... as always hear it first on Sharetrader
http://www.stuff.co.nz/business/indu...house-shake-up
Off course the board has not discussed recent performance .... yeah right
Morrice gone by Xmas .... retirement by the sounds of it sounds better than being give the boot
http://www.nzherald.co.nz/business/n...ectid=10700521
Good piece by Fran.
Interesting article, haven't owned any WHS shares for quite a few years having come to the conclusion growth for the company
was going to be difficult to find. That there was a greater prospect of a sales decline than increase.
I have a suspicion more of the problem lies with Tindals controlling shares than the CEO. I have no doubt Tyndal is a hardworking, trustworthy
gentleman, but suspect his business plan is yesterdays ideas ,that he can't see beyond them. He can either privatise the companany,
carry on with the same plan and continue to stagnate, or radically change board and management, give them all the room they need
to make changes. Won't be cheap or quick though I think, or sell out which would surprise me.
I wonder what plans Woolworths & Foodsfuffs have? Must be a worry for them.