HLG - Hallenstein Glasson

[percy]

Would be interesting to understand what proportion of sales are in areas that you mention have limited competition. My bet the bulk of the revenue is coming through sales in major centres but I could be wrong ?

You could be right,but after paying Mall % rents and other horrendous overheads the largest profits will be coming from stores outside of Malls and online sales.

[boysy]

Issue will be they are locked into long term leases with malls in major centres so they either choose to go online in the major centres or live with the status quo and pay more and more for rent in malls with likely compressed margins as a result of more price competition with new players. The sustainability of the divi is the big risk here and once that is lowered the SP will react accordingly.

[boysy]

Research indicates wave of foreign retailers will grow - CBRE research

http://www.propbd.co.nz/research-ind...ers-will-grow/

[Jantar]

Would be interesting to understand what proportion of sales are in areas that you mention have limited competition. My bet the bulk of the revenue is coming through sales in major centres but I could be wrong ?

No you are not wrong. But even in a major center like Auckland, is someone going to make a special trip to a particular mall just because Zara has a store there?

How many malls are there in Auckland?
How many have both HLG and these new brands?
How many other clothing stores are there in those malls?

Overall, the difference that these new brands can make will be tiny.

[boysy]

With respect jantar people wait hours in lines to enter these shops having travelled from all over Auckland (read news articles from opening of h & m and Zara this week at Sylvia park)Might be 6 main shopping malls in Auckland with a similar number of suburban malls dotted around. I think you will find the impact of trading on the likes of HLG, country road, witchery etc will be impacted big time. Why would you now go to HLG if cheaper, better quality and range of products were available in the same mall?

[winner69]

Research indicates wave of foreign retailers will grow - CBRE research

http://www.propbd.co.nz/research-ind...ers-will-grow/

Interest driven by waves of foreign visitors

[boysy]

Mr Moricz said rental pressure could push some local retailers back to secondary malls, especially in the sectors where the international brands were trying to dominate, such as fashion.

[winner69]

Anecdotal - chat from David Jones staff

They not doing that well as they stocking the wrong stuff - they just don't understand what NZ woman want - thinking they just like aussies

Farmers across the road who were going to be smashed doing quite well I'm told

[macduffy]

Anecdotal - chat from David Jones staff

They not doing that well as they stocking the wrong stuff - they just don't understand what NZ woman want - thinking they just like aussies

Farmers across the road who were going to be smashed doing quite well I'm told

A little off the HLG track but my scouts tell me that David Jones is also missing out on children's wear. Babies, yes, but nothing after that for the primary school- preteen cohort. Farmers seem to have the running here, too.

[Snow Leopard]

I see what people on both sides of the discussion are getting at.

I doubt if the opening of H&M in Auckland on Saturday will see much of a reduction in sales for Hallenstein, Glassons and any other bits of empire. (You can point at the Herald article at the weekend mentioning people queuing down the street to get in at opening if you like).
...

With respect jantar people wait hours in lines to enter these shops having travelled from all over Auckland (read news articles from opening of h & m and Zara this week at Sylvia park)...

With all due respect an opening is not an everyday occurrence.

Here in the the civilized world we have had all these shops that some of you guys out beyond the Tasman are getting so excited about.

Occasionally a new one opens, they queue to have a look inside and maybe buy something and then it settles down as just another shop, some of which are not turning a profit (location and the Malaysian economy is a little down).

Best Wishes
Paper Tiger