WHS - Warehouse Group

[Balance]

Have heard their focus for Whitcoulls is more gifts than books. !!!!!! ????????????
I do wonder who sells more books Whitcoulls or The Warehouse.?

Margins on books are obscene - 200% in most cases. Why you can buy from Amazon Jobs' book at NZ$30 vs Whitcoulls at NZ$43.95 when it was first launched.

Matter of waiting a week and it's delivered - but some people have to have it on first day of launch, of course.

How is Whitcoulls going to replace that margin?

[ratkin]

Just paid a visit to torpedo 7 website, there appears nothing there cheaper than i can buy elsewhere. Its still cheaper to buy from europe even with postage.
Then i thought i would buy some gu gel (energy sachets for running) advertised as 35% off. However i bought the same things cheaper at rebel sport last week.

Very crowded marketplace the fitness/camping/sport stuff

[percy]

Margins on books are obscene - 200% in most cases. Why you can buy from Amazon Jobs' book at NZ$30 vs Whitcoulls at NZ$43.95 when it was first launched.

Matter of waiting a week and it's delivered - but some people have to have it on first day of launch, of course.

How is Whitcoulls going to replace that margin?

They may get 200% on imported remainder books,however on new titles they are buying retail less 45% to 55%.Maybe the odd less 60%. and are taking 60 days to pay.
Amazon and Bookdepository give publishers huge prepublication orders.Makes a huge difference if you have a mil or two or three sold before you print the book,so therefore they get the book at a good price.

[ratkin]

Bought back in on the friday dip,first share i have bought for months. Will hold for the divvies, and something will happen eventually. Seems fairly low risk

[BlackPeter]

Bought back in on the friday dip,first share i have bought for months. Will hold for the divvies, and something will happen eventually. Seems fairly low risk

Hard to say. I used to be optimistic, but retail is currently a tough business and difficult to see where significant growth might come from.

I do see some improvements in (some of the) red sheds - refer to earlier posts. Have no real view on Noel Leemings and Torpedo 7. Warehouse Stationary has in my view still huge improvement potential - when I go there, it is normally possible to count the other customers on the fingers of one hand. More staff than customers is not a healthy ratio in retail. Finance division could over time develop into a nice little earner, but time will tell.

Just looking at the P/E: Forward P/E (assuming a 10% improvement on 2014 - my personal interpretation of their announcement "better than 2014) would be around 15; Divvie is good, but not outrageous.

Still believe the SP has based on above potential for further weakness (but no huge drops anymore), obviously all depends on Pascoes intentions. As long as he buys, the SP will not further drop.

Discl: Reduced my holding some months ago (and took a loss), but still holding some shares ("sitting on the fence")

[ratkin]

Im in no hurry, it lazy money that needed a home. The finance will be where it is at.
Its all very well the great unwashed looking for bargains online, however a big number have to pay for stuff on the never never at inflated prices, and Noel leemings/warehouse in a good position to capture them

[Bobdn]

Im in no hurry, it lazy money that needed a home. The finance will be where it is at.
Its all very well the great unwashed looking for bargains online, however a big number have to pay for stuff on the never never at inflated prices, and Noel leemings/warehouse in a good position to capture them

The "great unwashed" - that's no way to talk about your customers/me. I'm a WHS partial owner (also known as a shareholder) who recently bought travel insurance from the WHS.

[stoploss]

Foodstuffs in Wellington been cashing up property they purchased to stuff up Countdown chain of late . ( at a massive loss ) So maybe they will exit there 10 % share in this at a $ 2 odd discount , then things might start to happen ....

[BIRMANBOY]

They probably make a better % return on the dividends from WHS than they make on their own sales

Foodstuffs in Wellington been cashing up property they purchased to stuff up Countdown chain of late . ( at a massive loss ) So maybe they will exit there 10 % share in this at a $ 2 odd discount , then things might start to happen ....

[tim23]

Not at $5 a share they paid plus holding costs over the time!