WHS - Warehouse Group

[stoploss]

Costco .... Ouch

[bottomfeeder]

Costco .... Ouch
My thoughts exactly. Only just so much spending "pie" out there, to be cut in thinner slices.

[bull....]

Costco .... Ouch

will disrupt for sure , not just whs but supermarkets , briscoes etc etc

[iceman]

will disrupt for sure , not just whs but supermarkets , briscoes etc etc

Yes it definitely will. Possibly the fuel retailers as well

[whatsup]

Yes it definitely will. Possibly the fuel retailers as well

One out of the way retailer does not make a chain, 10 Costcos do , look how long its taken Bunnings to get footprints into suburban N Z .

[iceman]

One out of the way retailer does not make a chain, 10 Costcos do , look how long its taken Bunnings to get footprints into suburban N Z .

I visited a Costco store in Iceland last year that they setup a couple of years ago. Something like 35-40% of the +18 population now has a membership. A friend who runs icecream and takeaway shops tells me he now buys almost all his ingredients from there, rather than wholesalers. Significantly cheaper. It has caused a major change on the retail scene, including fuel. I suspect something similar can happen in NZ, starting in Auckland.

[bottomfeeder]

WHS down, how low will they go before it is starting to look like a BUY.

[stoploss]

WHS down, how low will they go before it is starting to look like a BUY.

Maybe never.

[Baa_Baa]

WHS down, how low will they go before it is starting to look like a BUY.

Some questions are just not answerable https://invst.ly/b0f35 here's a monthly chart going back to July 2004, what do you see, apart from massive sustained capital destruction? Maybe a floor in the SP back to 2017? Is there any reason why that support will hold this time like it has for a couple of years? Who knows.

Sometime it's best just to avoid a wealth destruction machine, maybe reconsider when or if it ever returns to an up trend? Personally I reckon WHS is seriously in trouble, the short term sell off coincides with the Cost Co. announcement. We haven't seen yet how IKEA and Amazon shipping from Australia will work out.

Anyway, back to that chart.

[winner69]

Some questions are just not answerable https://invst.ly/b0f35 here's a monthly chart going back to July 2004, what do you see, apart from massive sustained capital destruction? Maybe a floor in the SP back to 2017? Is there any reason why that support will hold this time like it has for a couple of years? Who knows.

Sometime it's best just to avoid a wealth destruction machine, maybe reconsider when or if it ever returns to an up trend? Personally I reckon WHS is seriously in trouble, the short term sell off coincides with the Cost Co. announcement. We haven't seen yet how IKEA and Amazon shipping from Australia will work out.

Anyway, back to that chart.

That’s one really sad chart eh baabaa and no doubt reflects Warehouse performance over those years.

Performance wise I reckon currently it’s as good as it ever will be.

[100101]

Market update announced at 16:19 today - so how on earth did the share price jump 10 cents after the close?

[noodles]

The market closes at 17:00.

[Snoopy]

The market closes at 17:00.

Wow 17 bucks! IIRC I sold out alll those years ago into one of those stake building offers at about $5! I guess the lesson is, just because you sell a share, that isn't an excuse for not paying enough attention to it in the future ;-P

SNOOPY

[Chanchay]

I think I am one of the few people bullish on the warehouse. Good announcement, and the launch of themarket prior to Amazon's arrival has potential. Check out themarket.co.nz if you haven't already. Currently in beta, it really should have been announced to the nzx already.

[percy]

I thought the announcement was extremely positive.
The big surprise to me was their big debt reduction.
This is been made by better stock control.

[percy]

Wow 17 bucks! IIRC I sold out alll those years ago into one of those stake building offers at about $5! I guess the lesson is, just because you sell a share, that isn't an excuse for not paying enough attention to it in the future ;-P

SNOOPY

Noodles was stating the market close time,not dollars.!..

[MauroNZ]

I can't remember what is the average volume but the graphic is looking encouraging. Well I try to see something positive since buying almost 6 years ago at $3.70 never went back to that level although I bought it for dividends (small parcel) as a recommendation from Craigs.

[percy]

I can't remember what is the average volume but the graphic is looking encouraging. Well I try to see something positive since buying almost 6 years ago at $3.70 never went back to that level although I bought it for dividends (small parcel) as a recommendation from Craigs.

Most probably be well worth buying a few more at $2.30 for the excellent divie.

[MauroNZ]

Most probably be well worth buying a few more at $2.30 for the excellent divie.

At that price I get a 9% gross yield (with imputation added) compared to HLG at 11% I guess is not that bad.

[steveb]

But you do have to ask yourself " who is more likely to still be around after Costco and Amazon set up"

[MauroNZ]

But you do have to ask yourself " who is more likely to still be around after Costco and Amazon set up"

that's true.

[bottomfeeder]

Based on past performance, why does the shareprice go up. More competition, yet no new ideas or strategies. The old adage, give a sliver of good news and the crowds flock.

[Brain]

Best to stay away from a company that has no growth prospects and increasing competition no matter what the dividend is.

[Joshuatree]

WHS down, how low will they go before it is starting to look like a BUY.

Hope you ignored the noise on here bf, your instincts were on to it. From $2.02 to $2.29 and now $2.23(profit taking?) would be a great trade for you at at least one other smart investor i know.

[bottomfeeder]

Just looked too risky, even for me. Now $1-80 may have enticed me. Good Luck.

[artemis]

Couple of weeks back NBR had a long article comparing financials with 'woke' WHS and 'what's woke?" Briscoes.

From memory, between WHS 2013 when eg living wage got under way and these days, share price has halved.

Nice that WHS has such a social conscience, and that will attract some shareholders. Others not so much.

[Joshuatree]

Some questions are just not answerable https://invst.ly/b0f35 here's a monthly chart going back to July 2004, what do you see, apart from massive sustained capital destruction? Maybe a floor in the SP back to 2017? Is there any reason why that support will hold this time like it has for a couple of years? Who knows.

Sometime it's best just to avoid a wealth destruction machine, maybe reconsider when or if it ever returns to an up trend? Personally I reckon WHS is seriously in trouble, the short term sell off coincides with the Cost Co. announcement. We haven't seen yet how IKEA and Amazon shipping from Australia will work out.

Anyway, back to that chart.

Much healthier chart now BaaBaa? Above the 50 and 200 DMA on my primitive chart. $2.02 then $2.30 today re a 14% gain, Congrats to you know who for swinging a trade here.Most of the gain after this update.

The Warehouse Group - Update on Guidance YE 28 July 2019 (https://www.nzx.com/announcements/338140)

[winner69]

MO’D’s review of The Market

https://www.stuff.co.nz/business/opinion-analysis/114871572/why-the-warehouses-new-ecommerce-platform-has-a-back-to-the-future-feel

[bottomfeeder]

Have to agree, just another online store, nothing new. About 5 years too late. Can see it swallowing funds, once started, they will be in so deep they wont be able to stop. A financial tiger by the tail. It will take years and years to break even. I would like to see them rather work on fine tuning their existing operations. I subscribe to one day deals but there are so many, I dont even bother to look anymore. Also twice a day, why not three or four times, too many thats why.

[SBQ]

Best to stay away from a company that has no growth prospects and increasing competition no matter what the dividend is.

Agree. The history of The Warehouse share price has been really sad since inception. I've never understood the concept of a 'dividend policy' as it goes against returning real shareholder value (particularly from a tax point of view). Fully imputed or not, TWG has been reckless in on their balance sheet just to meet this dividend payment plan. ie issue more shares to meet dividends, borrow more loans to pay dividends. Where is the sense and logic to these actions? So the end result is clear, you get a stock price that IPOs at $2/share and in about 40 years time, it will end up a $2 stock which is worse when you factor inflation. The shareholders suck the company out dry and IRD will stay happy collecting the taxes.

Competition will be on the online front and what The Warehouse is trying to do has failed abroad. Just take a walk in the Warehouse and see what's for sale. I'd be lucky to spend more than $50 a year there and to my wife, she would say that is way too much. She growls at me for buying cheap because it never pays. I recall 25+ years ago the term parallel importing was an often used term by they company. For eg. they use to bring in European AEG appliances just so the local NZ AEG distributor would keep their prices fair. When you walk into The Warehouse today, what brands do you see? Rubbish and the only way WHG gets around this is through acquiring other retailers like Noel Lemming that have pre-existing contracts with more well known supply chains. However, their product line is failing and customers aren't buying much there and it's natural for the NZ distribution suppliers to lock up their supply chain to protect their clients such as Harvey Norman. Just last week I went into Noel Lemming and while the sales lady was very kind, she was not able to deliver the right price and right product we were looking for. When we walked into Harvey Norman, it was clear they not only had the mass selections and brands but also had much lower pricing than Noel Lemming.

Uncertain how Costco will do in Auckland because they too will be under the same environment as WHG. UNLESS they bring back the term "Parallel Importing". But for a small population of NZ, it may not be economical and Amazon seems to do very well with their low price contracts in shipping and logistics. From I last recall, the only deal Costco in Auckland may do is offer lower fuel prices, lower price services for eye care, and that's about it. I don't believe that is enough to attract the high disposable income customers like they do in N. America. What I see is The Warehouse is a low budget version of Walmart and the latter only attracts low income customers.

[winner69]

Earnings upgrade - performance not good enough to pay bonus’s in full (good)

Does make you wonder how much these generous bonuses are though - holding back $6m of a much bigger expected amount ..hmm

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/WHS/339640/305981.pdf

In the previous update provided by The Warehouse Group on 25 July 2019, guidance for adjusted net profit after tax for the year was revised up to a range of $67m-$70m. It was also stated that the forecast included a full accrual for the year’s incentive payments. As expected, these have not been fully triggered and, as a consequence, we are further revising guidance for adjusted net profit after tax upwards, to a range of $73m - $75m.

[Ggcc]

https://www.tvnz.co.nz/one-news/new-zealand/more-than-7000-workers-warehouse-win-living-wage

Well this will stuff up the profit!! I know of at least 10 people that will move up from $17.75 per hour to living wage. Either prices go up or profits go down which will it be????

[artemis]

https://www.tvnz.co.nz/one-news/new-zealand/more-than-7000-workers-warehouse-win-living-wage

Well this will stuff up the profit!! I know of at least 10 people that will move up from $17.75 per hour to living wage. Either prices go up or profits go down which will it be????

Maybe neither of those if expenses fall enough. Big push to reduce costs as more sales move online and distribution is centralised. Recently reported 11 centres to close, 150 staff affected. And probably more automated checkouts.

Some cost reductions will be offset by pay relativity of course. Then again workers might stay longer if they can't get the same rate elsewhere.

The government will be happy as tax take increases and income related transfers reduce, sometimes very sharply. Seem to recall media reporting last year a woman who took on 10 hours extra work a week and was $50 better off in the hand.

[ratkin]

No interest in the Warehouse result?
Looks fairly promising, and if there is going to be a recession then the warehouse should do better than most.

[glennj]

No interest in the Warehouse result?
Looks fairly promising, and if there is going to be a recession then the warehouse should do better than most.

Price is up on good volume today. Up 19 cents since the end of last month, now at $2.41

[Joshuatree]

Well done to the few that ignored all the negative rants on here, how wrong can the herd be. Hope that didnt influence anyone the wrong way. NZX chart only goes 2 years,S/P at a new high on the highest vol as well.

• Adjusted Net Profit After Tax of $74.1m, up 25.6 per cent on last year
• Reported Net Profit After Tax attributable to shareholders up 185.8 per cent to $65.4m
• Group sales were $3,071.4m, up 2.6 per cent compared to FY18
• Warehouse Stationery achieved a record operating profit of $16.7m
• Noel Leeming sales up 5.0 per cent, achieving record retail operating profit of $38.1m
• Group online sales (online, mobile and mobile app) up 18% to $239.2m
• Final dividend of eight cents per share, total dividend for FY19 17 cents per share

[trader_jackson]

It will be interesting to see how "The Market" goes... they are certainly chucking alot of money at it to develop it.

[Beagle]

WHS has been a "brilliant" hold compared to some other retailers over the last 3 years...opps hang on a minute 10781 HLG in blue.
Maybe those who issued the so called negative rants warning people off have done others a tremendous favour...

[couta1]

WHS has been a "brilliant" hold compared to some other retailers over the last 3 years...opps hang on a minute 10781 HLG in blue.
Maybe those who issued the so called negative rants warning people off have done others a tremendous favour... Lol I choose the blue line pedigree please, the other mongrel still needs a lot of flea treatment.

[winner69]

WHS revenues gaining momentum

All good

https://www.nzx.com/announcements/343980

[Bobdn]

Yes, I've finally got my money back (if I include dividends;). Terrible investment relative to the NZX50 but I'm very grateful for the nearly 40 per cent increase in the last 6 months.

What do I do now? I'd quite like to sell but things are looking good and there's a nice dividend in a couple of weeks. Decisions, decisions.

[couta1]

Yes, I've finally got my money back (if I include dividends;). Terrible investment relative to the NZX50 but I'm very grateful for the nearly 40 per cent increase in the last 6 months.

What do I do now? I'd quite like to sell but things are looking good and there's a nice dividend in a couple of weeks. Decisions, decisions. Perhaps go and have a listen to that 1972 Bunny Walter's classic song to help you with your decision.

[Bobdn]

Had to look that up - take the money and run. I think the compromise is that I'll take a little bit of money (1/3rd) off the table but keep the bulk of it invested and see what happens after Christmas.

https://www.youtube.com/watch?v=E3jy5sEH0PU

[couta1]

Had to look that up - take the money and run. I think the compromise is that I'll take a little bit of money (1/3rd) off the table but keep the bulk of it invested and see what happens after Christmas.

https://www.youtube.com/watch?v=E3jy5sEH0PU Most underrated Maori voice in the the NZ music scene.

[kiwidollabill]

Any guesses on how xmas trading will go....?

Dunedin has merged the red/blue sheds and shifted Torpedo7 into the old warehouse stationary (which I think is a better spot) but I've yet to check out the new format.

Whats the drag on Torpedo7? The staff at the store here have always been super helpful, purchased all our kids bikes from there over the years.

[ratkin]

Was talking to a warehouse person the other day, according to him deliveries before xmas were about a week behind as they struggled to cope with the higher than expected numbers. So if that is anything to go by then they may have done better than expected, online at least.

[MauroNZ]

Was talking to a warehouse person the other day, according to him deliveries before xmas were about a week behind as they struggled to cope with the higher than expected numbers. So if that is anything to go by then they may have done better than expected, online at least.

That sounds encouraging.

[ratkin]

Yeah it not just them either, couriers all had more parcels than expected, they were caught on the hop by black Friday, this year it really exploded

[MauroNZ]

well let's wait and see. I'm a bit reluctant when it come to retail given the new in OZ about brands in trouble. In fact I think I'm going to sell WHS once it recovers a bit from my buying price.

[couta1]

well let's wait and see. I'm a bit reluctant when it come to retail given the new in OZ about brands in trouble. In fact I think I'm going to sell WHS once it recovers a bit from my buying price. Forget this pup and buy the best of breed being HLG.

[MauroNZ]

Forget this pup and buy the best of breed being HLG.

I think I missed the train with HLG.

[BlackPeter]

I think I missed the train with HLG.

Its a cyclical ... the next time will come :);

[couta1]

Its a cyclical ... the next time will come :); But how many years will he have to wait. Lol

[winner69]

Its a cyclical ... the next time will come :);


Originally posted by couta:

But how many years will he have to wait, lol


Different points of view

I reckon one with a rear view mirror view and the other with a forward looking view based on a changing world

[MauroNZ]

Different points of view

I reckon one with a rear view mirror view and the other with a forward looking view based on a changing world

Would you mind explaining a bit more please?.

[winner69]

Would you mind explaining a bit more please?.

BP’s view is that because HLG has shown cyclical behaviour in the past it will continue to so into the future ...and he has said a few times it’s at or near the top of the cycle currently (code for the share price may go down soon)

Couta’s view is that strong future growth in Australia (and maybe their ability to successfully adapt to changing retail trends) will mitigate any short to medium term ‘cyclical’ pressures (code for the share price will hold up if not improve in the medium term)


When growth stops in Australia BP might be right ...HLG might become cyclical again

[MauroNZ]

BP’s view is that because HLG has shown cyclical behaviour in the past it will continue to so into the future ...and he has said a few times it’s at or near the top of the cycle currently (code for the share price may go down soon)

Couta’s view is that strong future growth in Australia (and maybe their ability to successfully adapt to changing retail trends) will mitigate any short to medium term ‘cyclical’ pressures (code for the share price will hold up if not improve in the medium term)


When growth stops in Australia BP might be right ...HLG might become cyclical again

Thank you very much Winner, I appreciate it.

[winner69]

Warehouse going to war - the Leadership Squad has been appointed - to act in an agile way

Cool

https://www.nzx.com/announcements/347876

[Sideshow Bob]

Warehouse going to war - the Leadership Squad has been appointed - to act in an agile way

Cool

https://www.nzx.com/announcements/347876

Maybe the current COO isn't agile enough?? https://www.nzx.com/announcements/347804

[jonu]

WHS looking real cheap to me on the back of trading update. No material supply issues or impact expected on FY20.

[jonu]

Very strange to me that the trading update announcement wasn't treated as price sensitive. Any old who... the market seems to be waking up to it.

[winner69]

Very strange to me that the trading update announcement wasn't treated as price sensitive. Any old who... the market seems to be waking up to it.

Maybe the ‘market’ will want to believe any goodish news - do you really believe that things are that honky dory

Different story likely on March 17 I’d say

[jonu]

Maybe the ‘market’ will want to believe any goodish news - do you really believe that things are that honky dory

Different story likely on March 17 I’d say

Are you calling WHS liars Winner?

[winner69]

Are you calling WHS liars Winner?

No jonu nothing of the sort

They say they are ‘actively monitoring the coronavirus situation’ .... that’s no doubt true.

They go on to say ‘At this stage, there is not expected to be a material impact on FY20 results’ .....that’s opinion and subjective

Wonder what will come up with after a bit more ‘actively monitoring’ and when reality hits home.

March 17th we will be wiser eh

[jonu]

No jonu nothing of the sort

They say they are ‘actively monitoring the coronavirus situation’ .... that’s no doubt true.

They go on to say ‘At this stage, there is not expected to be a material impact on FY20 results’ .....that’s opinion and subjective

Wonder what will come up with after a bit more ‘actively monitoring’ and when reality hits home.

March 17th we will be wiser eh

Their biggest possible issue at this stage would be supply chain. They are very clear that this has not been impacted.

[winner69]

Their biggest possible issue at this stage would be supply chain. They are very clear that this has not been impacted.

Did they say that?

I only read ‘Group is well positioned with its directly sourced inventory and with branded suppliers.’ ....the good old well positioned phrase eh which could mean anything

Never mind my thoughts ....just believe them and have faith things are honky dory

[jonu]

Did they say that?

I only read ‘Group is well positioned with its directly sourced inventory and with branded suppliers.’ ....the good old well positioned phrase eh which could mean anything

Never mind my thoughts ....just believe them and have faith things are honky dory

I think that's the best bet. Rather than someone throwing random grenades.

[ratkin]

Why is the Warehouse being particularly badly bettered? Is it because of the prospect of deserted malls? They do have an online channel which could see more trade than normal if people staying in.
Normally a good shop in a recession

[BlackPeter]

Why is the Warehouse being particularly badly bettered? Is it because of the prospect of deserted malls? They do have an online channel which could see more trade than normal if people staying in.

Ever tried their online service? It is not particularly exciting compared to the competition (like HLG, Briscoes, amazon, alibaba, ...) - I guess somebody must be the last cab of the rank, but why own it?

[ratkin]

Ever tried their online service? It is not particularly exciting compared to the competition (like HLG, Briscoes, amazon, alibaba, ...) - I guess somebody must be the last cab of the rank, but why own it?

Yeah I did buy something off their recently, quite like click and collect, Torpedo Seven pretty decent shop if go when the sales are onThey were starting to do ok recently, bought in at 2.00 a while back and jumped ship at 2.45 the other day

[JeremyALD]

This is one of the strangest drops to me. They have turned around performance recently and pay a strong dividend. Definitely considering buying in here. Any thoughts?

[macduffy]

Perhaps it's more a matter of fear that their supply change is/will be disrupted. After all, not much of their stock isn't imported, largely from Asia.

[percy]

Going into a lot slower period for retailers,so the affect may not be so great.
Winter clothing deliveries would be their major concern.
I expect there will be some shortages,and I think we will be surprised by what they are.
In ChCh with the earthquakes, the major need was for water,and then loo paper.
Great window of opportunity for most retailers to clear out the back storeroom.!!..lol.

[winner69]

Did they say that?

I only read ‘Group is well positioned with its directly sourced inventory and with branded suppliers.’ ....the good old well positioned phrase eh which could mean anything

Never mind my thoughts ....just believe them and have faith things are honky dory

A few days later

Coronavirus: The Warehouse Group warns of up to eight weeks of stock delays

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12313226

[ratkin]

The warehouse price was all over the place today, I will probably buy back in when all the shortages are happening hopefully all the negative news will send the price down nice and low.
Eight week delay on winter clothing seems quite significant, it basically a season of clothing written off, but in the great scheme of things it will be a one off, and supply will all be hunky dory again in a few more months

[peat]

The warehouse price was all over the place today, I will probably buy back in when all the shortages are happening hopefully all the negative news will send the price down nice and low.
Eight week delay on winter clothing seems quite significant, it basically a season of clothing written off, but in the great scheme of things it will be a one off, and supply will all be hunky dory again in a few more months

reading the article in full gave quite a different impression to the sensationalist headline about 8 weeks.

[ratkin]

Not a bad result out today and some interesting comments.
Their factories in China are back up and running, which is good news. The big unknown is the virus coming here.
Obviously if it did then it could be bad, but other than that looks pretty positive. They are normally a decent recession stock

[Bobdn]

No, not bad at all. I sold 2/3rds a few months back and decided to keep a third to see what happens. Has anyone noticed how busy the Warehouse is just now? It's not supermarket busy but there's a steady stream of people loading up on stuff. It's the busiest I've seen it for years.

[macduffy]

No, not bad at all. I sold 2/3rds a few months back and decided to keep a third to see what happens. Has anyone noticed how busy the Warehouse is just now? It's not supermarket busy but there's a steady stream of people loading up on stuff. It's the busiest I've seen it for years.

Of course. They sell toilet paper, don't they?
;)

[ratkin]

No, not bad at all. I sold 2/3rds a few months back and decided to keep a third to see what happens. Has anyone noticed how busy the Warehouse is just now? It's not supermarket busy but there's a steady stream of people loading up on stuff. It's the busiest I've seen it for years.

Will go down to Barrington to investigate , trouble is they may not be open for much longer, at least the supermarkets will still make money in a lockdown, warehouse wont, apart from a bit of online buying

[percy]

Was in Barrington store this morning,buying new head phones, and looking for Turkish Delight.They were trading steadily.
Fresh Choice had a big stack of loo paper in one aisle.
Warehouse and Warehouse stationery at Eastgate were both bizze yesterday.
Mountains of Easter Eggs at both Eastgate and Barrington stores.
Must admit Warehouse store at Eastgate impresses me.Always well stocked and plenty of customers.Using the self service saves time.

ps.Surprised at Eastgate yesterday.Asked a staff member where the Turkish Delight was.Wait here I will go and check for you.None, so hence my trip to Barrington.Will try online.

[BlackPeter]

Of course. They sell toilet paper, don't they?
;)

Good point. Human stupidity never ceases to amaze ... :lol:

[ratkin]

Yep, can confirm Warehouse in Barrington at least twice as busy as normal today. They had pallets of stuff that looked like it might be useful, wipes and suchlike. Trade was certainly up on normal. This week will probably not be the time to buy though, but it is on the watchlist

[Bobdn]

Interesting. Yes, I noticed the pallets of water (10 litre containers of spring water); tissues; wipes; nappies; baby food and infant formula; and an assortment of other grocery items that people might need for long periods at home.

I saw people carting out 2x 10kg packets of washing powder - they were limited to two per person. That's probably three or four years of washing powder (at least for me).

[ratkin]

Any chance the Warehouse can be on the essential list? They do sell some food and drug related stuff.

[Bobdn]

I wonder - they have an extensive line of grocery items. I see in Australia bottle stores are considered an essential service.

[Panda-NZ-]

Down nearly 20% and nice dividend coming up..

[ratkin]

Down nearly 20% and nice dividend coming up..


Just picked up 11ks worth at 1.56 would not have expected that, put the low ball bid in and had it matched. They normally do well in a recession and the govt will pay the wages for a month

[skid]

Just picked up 11ks worth at 1.56 would not have expected that, put the low ball bid in and had it matched. They normally do well in a recession and the govt will pay the wages for a month

Even after not getting your Turkish Delight?:)

[ratkin]

Even after not getting your Turkish Delight?:)

That was Percy looking for that!!

[percy]

No Loqumania Turkish Delight at Barrington,Eastgate or online.
Must be good for fighting the CoronaVirus.?..lol.

[Beagle]

No Loqumania Turkish Delight at Barrington,Eastgate or online.
Must be good for fighting the CoronaVirus.?..lol.

LOL - We really do need some humour after a day like today. Thank you.

[ratkin]

LOL - We really do need some humour after a day like today. Thank you.

Yes, what a day. Very heated all round. Had to go for a run and open a bottle of wine to calm down.

Finally dipped toe into the market with the warehouse near close of play. Has to be good value now surely. They are quite conservatively geared at 12% Dividend due, but maybe they will cancel that, might not be a bad idea.
Will probably go lower but still have Nine toes to dip in. I noticed volume was very low, it was just small players bailing out, but most buyers been scared off

The Bond letter finally arrived Beagle.

[tga_trader]

Any chance the Warehouse can be on the essential list? They do sell some food and drug related stuff.

Just heard a rumour they're remaining open. They really shouldn't be, but obviously justifying it to themselves somehow

[Beagle]

Yes, what a day. Very heated all round. Had to go for a run and open a bottle of wine to calm down.

Finally dipped toe into the market with the warehouse near close of play. Has to be good value now surely. They are quite conservatively geared at 12% Dividend due, but maybe they will cancel that, might not be a bad idea.
Will probably go lower but still have Nine toes to dip in. I noticed volume was very low, it was just small players bailing out, but most buyers been scared off

The Bond letter finally arrived Beagle.

That's good. I invested more in Kiwibonds today. Return OF money, more important than return ON money at present. As far as I am concerned its all about locking in the profits of the 11 year Bull run and mostly keeping out of the way of the bear. That said $1.50 for WHS is breathtaking value considering their report was very good. Low debt is a good thing for WHS. If they are deemed an essential product supplier you might have timed your purchase very well !

[ratkin]

That's good. I invested more in Kiwibonds today. Return OF money, more important than return ON money at present. As far as I am concerned its all about locking in the profits of the 11 year Bull run and mostly keeping out of the way of the bear. That said $1.50 for WHS is breathtaking value considering their report was very good. Low debt is a good thing for WHS. If they are deemed an essential product supplier you might have timed your purchase very well !

Yes at least the bonds is money will still have in a years time. If you top up do you have to fill a whole new form again? Have a few more term deposits maturing soon and should be buying a few more stocks by then.
Suspect this shutdown will last much longer than Four weeks though, but we shall see.

[Beagle]

New form and new interest rates today. https://debtmanagement.treasury.govt.nz/sites/default/files/application-form-kiwibonds-issue110-mar23.pdf

Best bit about the Kiwibonds is you can get your money back with 7 working days notice so at the very first sign of a glimmer of light at the end of the tunnel...

WHS should be okay though but where it bottom's out is anyone's guess ?

[trackers]

That's good. I invested more in Kiwibonds today. Return OF money, more important than return ON money at present. As far as I am concerned its all about locking in the profits of the 11 year Bull run and mostly keeping out of the way of the bear. That said $1.50 for WHS is breathtaking value considering their report was very good. Low debt is a good thing for WHS. If they are deemed an essential product supplier you might have timed your purchase very well !

Will be interesting to see if they remain open. Is important to keep in mind as well that this is the Warehouse group of companies, and a lot of these companies probably will do quite terribly (warehouse stationary, torpedo7, the pet one, the fitness one...etc - Albeit red sheds might outperform relative to competition and does make up a good chunk of group sales)

[Beagle]

Will be interesting to see if they remain open. Is important to keep in mind as well that this is the Warehouse group of companies, and a lot of these companies probably will do quite terribly (warehouse stationary, torpedo7, the pet one, the fitness one...etc - Albeit red sheds might outperform relative to competition and does make up a good chunk of group sales)

And Noel Leeming.

[winner69]

I’d be pissed off if they remain open when nearly everybody else has to close.

[Bobdn]

I just returned from the Warehouse in Porirua, very busy. I bought some weights, now that my gym is closed, for $40.

People were filling up trolleys with the usual grocery items.The place is filled with pallets of essentials...and Easter Eggs. They were definitely about to run out of $1 cans of Oak Baked Beans but there were still a few cans of Delish Four bean mix in brine - not quite the same thing. Shelves had almost been stripped of just about all soap including the big Lux packets with 8 bars.

If they do get to stay open (and who knows) I hope their supply lines are secure to replace everything.

One last thing, people were buying board games in bulk.

Better hurry if you want these

https://www.thewarehouse.co.nz/p/delish-four-bean-mix-in-brine-400g/R1949091.html?lang=default

[ratkin]

I just returned from the Warehouse in Porirua, very busy. I bought some weights, now that my gym is closed, for $40.

People were filling up trolleys with the usual grocery items.The place is filled with pallets of essentials...and Easter Eggs. They were definitely about to run out of $1 cans of Oak Baked Beans but there were still a few cans of Delish Four bean mix in brine - not quite the same thing. Shelves had almost been stripped of just about all soap including the big Lux packets with 8 bars.

If they do get to stay open (and who knows) I hope their supply lines are secure to replace everything.

One last thing, people were buying board games in bulk.

Better hurry if you want these

https://www.thewarehouse.co.nz/p/delish-four-bean-mix-in-brine-400g/R1949091.html?lang=default

Are they open tomorrow too? Or was today the last day.
Technically it is not a supermarket but it does fulfil some of the requirements on the essential list.
It does sell food, and essential consumables like sanitary products. It would be a good idea for them to keep it open as they sell just about everything people might need during a long lockdown. Like computers, phones, gaming machines, stuff to keep kids occupied.

Keep it open

[Bobdn]

Are they open tomorrow too? Or was today the last day

Yes, open tomorrow. And welcome aboard :)

Over the next few days I'm going to sell some bonds and transfer the proceeds into some index funds and in the weekend I'm going to update my networth and take my lumps and then I'm going to see if I can not look at the market for a few weeks or months. My PB is three months. Life is better without CNBC etc and the SMH business section.

[ratkin]

Yes, open tomorrow. And welcome aboard :)

Over the next few days I'm going to sell some bonds and transfer the proceeds into some index funds and in the weekend I'm going to update my networth and take my lumps and then I'm going to see if I can not look at the market for a few weeks or months. My PB is three months. Life is better without CNBC etc and the SMH business section.

Brave to move into index funds at this stage, braver than me. Today wore me out mentally, not sure I can face looking at the markets much longer. But that will be the time to buy, when everyone else has lost interest.
I did have Warehouse shares before, sold them at 2.45 a few weeks back. They have been making good progress before the virus showed up

[Bobdn]

Yes, I hate doing it. I put some in at -10 per cent; then today when indexes are now down 30 per cent (ftse, SP 500, ASX200) or there abouts. Will add more when we get to minus 40 per cent. I'll probably add a bit at minus 50 per cent. But that will be it.

[winner69]

The Warehouse to keep 92 stores open

That makes a mockery of the STAY AT HOME edict

At least I’ll be able to buy some pen and paper to do my sums

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/WHS/350499/319451.pdf

[blackcap]

The Warehouse to keep 92 stores open

That makes a mockery of the STAY AT HOME edict

At least I’ll be able to buy some pen and paper to do my sums

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/WHS/350499/319451.pdf

Just wait for Harvey Norman to jump up and down and claim its not fair. And so the ball starts rolling till all stores are open.

[ratkin]

20% Gains possible today, they were over 1.80 before lockdown announced then went to 1.50<br>
<br>
Good idea to keep it open, it sells everything anyone might need during lockdown. Just imagine how busy they will be. Great the Govt is supporting one of the iconic kiwi companies that employs 12,000 people<br>
<br>
Good work Jacinda !!

Actually with everyone home maybe it goes up much more than 20%

As for Harvey norman why should we help out an aussie company, need to look after our own!!

[samjaynz]

Just wait for Harvey Norman to jump up and down and claim its not fair. And so the ball starts rolling till all stores are open.

I mean it isn't really fair, is it?

I get allowing the red sheds to stay open, but allowing Noel Leeming, Warehouse Stationery, T7 etc to continue to trade just because they operate out of the same distribution centre is a kick in the teeth to other businesses (small and large) and makes a mockery of the concept of lockdown.

Either lock us down completely with only essential food/petrol/medical allowed (so warehouse can open but has to rope off everything else that isn't the food/drink aisles ... no Xbox or homeware browsing) or allow all distribution facilities to open so that businesses can trade online and get some form of revenue coming in to tide them over during the lockdown and keep the economy ticking a bit.

As it stands it just smacks of unfair corporate welfare for the Warehouse Group.

[ratkin]

I mean it isn't really fair, is it?

I get allowing the red sheds to stay open, but allowing Noel Leeming, Warehouse Stationery, T7 etc to continue to trade just because they operate out of the same distribution centre is a kick in the teeth to other businesses (small and large) and makes a mockery of the concept of lockdown.

.

The others are online only, does not put anyone at extra risk. It will be the people spending the day at the beach spreading the virus, not the distribution centre where they have good protocols in place. Not that I am biased or anything

Anyway up 20% already to 1.80 and should be much higher because it now has literally no competition, Lets just hope they can keep the supply channels flowing

[Bobdn]

Well said Ratkin. The Warehouse provides aisles of essential goods including shelves upon shelves of infant formula and bleach - more than supermarkets! I'm not biased either.

[samjaynz]

The others are online only, does not put anyone at extra risk. It will be the people spending the day at the beach spreading the virus, not the distribution centre where they have good protocols in place. Not that I am biased or anything

Then why not allow all distribution centers to open if that is the argument?

If a business can operate online only with no customer interface in-person, then let it trade. Otherwise Warehouse Group just gets an unfair leg up on everyone else and takes the mickey out of a serious situation.

For example, I work with a business that supplies drinking water tanks to homes and businesses.

Water is a heck of a lot more essential than buying an iPhone on 12 months' interest free from Noel Leeming ... this business' distribution center only has a few staff working at any time in a fairly remote location ... why shouldn't they get to open?

And so the slippery slope continues.

I should add I do agree with allowing the Red Shed to sell cleaning products, food, infant formula etc - but rest of the store should be roped off and not available to customers.

[Ogg]

The Warehouse be like...

[Zaphod]

Then why not allow all distribution centers to open if that is the argument?

If a business can operate online only with no customer interface in-person, then let it trade. Otherwise Warehouse Group just gets an unfair leg up on everyone else and takes the mickey out of a serious situation.

For example, I work with a business that supplies drinking water tanks to homes and businesses.

Water is a heck of a lot more essential than buying an iPhone on 12 months' interest free from Noel Leeming ... this business' distribution center only has a few staff working at any time in a fairly remote location ... why shouldn't they get to open?

And so the slippery slope continues.

And a lot of those items e.g. iPhone's are now in very short supply due to this pandemic anyway. Baring a major failure of a key appliance, I can't see us purchasing anything like that for the next 4 weeks.

[ratkin]

Instead of complaining about them being open, snap us some cheap shares and profit from it.

Everyone gets a bargain

[samjaynz]

Instead of complaining about them being open, snap us some cheap shares and profit from it.

Everyone gets a bargain

Is there a money back guarantee on those too? ;)

[Panda-NZ-]

Nice recovery so far. managed to pick some up too :)

[ratkin]

Nice recovery so far. managed to pick some up too :)

Yeah 33% and still rising. May make it back to 2.20

I think what will happen is we will stay with this level of quarantine for a week or Two then they will probably look at it again. If it not working they will tighten up even more, if it working well they will maybe allow a few other things to open.

As long as the warehouse enforce the social isolation thing then should be no problems

[Ogg]

A lot of social media saying warehouse should be closed. Will government intervene?

[winner69]

A lot of social media saying warehouse should be closed. Will government intervene?

Even a petition to force them to close

https://www.change.org/p/director-general-of-the-ministry-of-health-close-non-essential-large-shops-during-level-four-outbreak?recruiter=125300995&utm_source=share_petition&utm_medium=facebook&utm_campaign=share_petition&recruited_by_id=f2d62600-0a11-11e4-9fa3-17bd09b6ecbb&utm_content=starter_fb_share_content_en-au%3Av11

[Panda-NZ-]

It's not making the front pages which is what matters I would think. Some people will need computer stuff too during a four week shutdown

[ratkin]

It's not making the front pages which is what matters I would think. Some people will need computer stuff too during a four week shutdown

Exactly, those same people will soon be complaining when their kids xbox controller breaks on the first day of lockdown.
The warehouse is also the lifeblood of many small towns throughout the country. A month is a long time to be totally deprived of things.


People on stuff comments complain about absolutely everything, the silent majority will be quite happy it is open.

[Ogg]

Even a petition to force them to close

https://www.change.org/p/director-general-of-the-ministry-of-health-close-non-essential-large-shops-during-level-four-outbreak?recruiter=125300995&utm_source=share_petition&utm_medium=facebook&utm_campaign=share_petition&recruited_by_id=f2d62600-0a11-11e4-9fa3-17bd09b6ecbb&utm_content=starter_fb_share_content_en-au%3Av11

Likely started by employees unhappy about not getting a 4 week holiday.

[Lego_Man]

A lot of social media saying warehouse should be closed. Will government intervene?

Government intervention is the problem.

Wouldn't be surprised if WHS was in Winston's retirement fund. This "picking of winners" is now our future.

[Beagle]

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12319321 Apologies if this has been posted already. Plenty of debate about whether what WHS sells constitutes essential products. I don't go there often but on a casual observation I think my local store has about 15% of its area dedicated to essential products.

Not a given that they will be allowed to stay open especially Noel Leeming, Torpedo 7. Some caution may be warranted after this mornings big bounce.

Where do you draw the line ? For example if Haldenstein's stores start selling a range of drinks and snacks can they stay open ?

[Bobdn]

Wow social media AND an online petition, things are really heating up.

[ratkin]

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12319321 Apologies if this has been posted already. Plenty of debate about whether what WHS sells constitutes essential products. I don't go there often but on a casual observation I think my local store has about 15% of its area dedicated to essential products.

Not a given that they will be allowed to stay open especially Noel Leeming, Torpedo 7. Some caution may be warranted after this mornings big bounce.

Noel Leemings and Torpedo 7 are not open, just the red sheds. Recently they have had far more cleaning products, wipes etc than the supermarkets, pallets of the stuff just inside the main doors

[Beagle]

Noel Leemings and Torpedo 7 are not open, just the red sheds. Recently they have had far more cleaning products, wipes etc than the supermarkets, pallets of the stuff just inside the main doors

Thanks, good to know.

[ratkin]

Thanks, good to know.

You should get down there Beagle !! Give us a full report

[Beagle]

You should get down there Beagle !! Give us a full report

The kennel is already very well stocked but I do need a new laptop for Mrs B so we're headed down to Noel Leeming later today...with our masks and gloves.

[winner69]

I think we just missed Jacinda’s WINDOW OF OPPORTUNITY to save tens of thousands of lifes

[Bobdn]

I think we just missed Jacinda’s WINDOW OF OPPORTUNITY to save tens of thousands of lifes

You could always sign the online petition, if you think that would help.

[ratkin]

I think we just missed Jacinda’s WINDOW OF OPPORTUNITY to save tens of thousands of lifes


Lol it is you that missed the window of opportunity :-)

[kiwico]

Noel Leemings and Torpedo 7 are not open, just the red sheds. Recently they have had far more cleaning products, wipes etc than the supermarkets, pallets of the stuff just inside the main doors

The blue sheds are open too - just picked up some ethernet cable. Mitre 10's car park was full pluses there were queues outside Countdown and Pak'n Save (to limit the number of people in the store I assume). Of course the queues were fairly closely packed together. :mellow:

[ratkin]

Have just been to the warehouse Barrington. Limiting customers entry, and they have 2 metre strips on the floors near tills . Better hurry not many Easter eggs or scooters left

[frostyboy]

"The Government had not decided the Warehouse is allowed to be open. He cautioned firms from deciding what their status woud be."

[mikeybycrikey]

In the 1pm press briefing, officials have just announced that the Warehouse may not be an "essential service". I think Warehouse may have jumped the gun and announced they will be open because they sell food.

I wouldn't be surprised if WHS stays open but serious restrictions on what they sell and on number of customers in the store.

[winner69]

I hope Uncle Bills is allowed to stay open if The Warehouse is allowed to ....sell much the same stuff

Cool shop in Lyall Bay next to the big red one.

[winner69]

Gun City going ballistic today .....long queues getting the essentials of life

[Bobdn]

I sold some at $2.10. I never turn down a 40 per cent jump in a share price over an hour.

We'll see what happens...

[mikeybycrikey]

Well, that escalated quickly. They seem to be in a trading halt now.

[blackcap]

Gun City going ballistic today .....long queues getting the essentials of life

Well the Roar is coming up very soon and Winston Peters did suggest hunting was a good solo activity. So possibly those hunters that were going to buy a gun in the next 4 weeks realising that they better get one now or they won't be able to.

[Tomtom]

I'm not sure I would have included The Warehouse an "essential" service but then nor is my local corner shop or bottle shop (the last thing people and the police need is alcohol!) It seems like government will have to be more prescriptive here.

[GR8DAY]

How can plastic Chinese crap that only ends up in landfills be seen as essential? Here's hoping the Warehouse stays closed forever....we don't need their junk on our shores. It was essential to my mental health to get that off my chest. Amen.

[Beagle]

the Government had not decided that The Warehouse, which said today it would stay open during the lockdown, was an essential service.
He cautioned businesses from claiming they were an essential service prematurely.

https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=12319341

[Jay]

The business (types) that qualify are on the covid19.govt.nz site now
In any event that still allowed to be open until tomorrow night

[winner69]

The business (types) that qualify are on the covid19.govt.nz site now
In any event that still allowed to be open until tomorrow night

So does Uncle Bill's

I see a big **** fight developing here ....that'll yest Jacinda's resolve

[trader_jackson]

This is extremely naughty for an nzx 50 company to claim they are an essential service and therefore will remain open.
My thinking is they will not be allowed to stay open and, at best, be online only.

[bull....]

lockdown joke every shop in town looking to profit

[Lola]

How can plastic Chinese crap that only ends up in landfills be seen as essential? Here's hoping the Warehouse stays closed forever....we don't need their junk on our shores. It was essential to my mental health to get that off my chest. Amen.

Totally agree .eg Plastic chairs at a typical NZ BBQ last one summer at the most as many are too small to accommodate many of "our people". Plenty of wood grown here to make BBQ chairs that will last many summers. Bring back tarriffs and to hell with free trade. The world has changed and not before time.

[Jaa]

The warehouse should absolutely stay open and shift its product range to essential items and food. No one has the purchasing, warehousing and logisitics capabilities in NZ that they do outside the 2 supermarkets.

NZ is paying the price in lack of access and security of supply for having only 2 supermarket chains. Now is a great opportunity for the warehouse to achieve their long held goal of operating hypermarkets (goods & food). We should all encourage them to do so.

[Bobdn]

Yes and supermarkets unlike the Warehouse sell cigarettes. Surprised that supermarkets are allowed to stay open in the circumstances, given the high correlation between smoking and virus death rates.

[trackers]

The warehouse should absolutely stay open and shift its product range to essential items and food. No one has the purchasing, warehousing and logisitics capabilities in NZ that they do outside the 2 supermarkets.

NZ is paying the price in lack of access and security of supply for having only 2 supermarket chains. Now is a great opportunity for the warehouse to achieve their long held goal of operating hypermarkets (goods & food). We should all encourage them to do so.

Sounds like wishful thinking, there's literally nothing the Warehouse sells that is essential.... chips lolly and bottles of coke?

[Bobdn]

Infant formula and a full range of other grocery items but your argument is why I sold some shares this lunchtime. This govt is highly influenced by social media, online petitions and feels. Best to assume the worst (and that they will ignore logic) and put more cash in my bank.

[peat]

I'm already a little intolerant of guvmint telling so many people what to do and not do. It always gets to be a farce begging for corruption to slide into the mechanics of the system.

Yeh I know, it will save tens of thousands of lives (they think) , but all I'm saying is - if I feel this way before it even starts how am I gonna feel in a months time when lots of companies declare insolvency.

Socialism always gets bigger.

[Beagle]

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12319432

Industry heavyweight Rod Duke weigh's in (in a big way), on this debate. He doesn't hold back ! No need for me to bark about this issue, the BIG DOG Rod has barked up a real storm !!

[winner69]

Nick working overtime trying to convince the guy at MBIE that he is 'essential'

Using his usual charm

[Zaphod]

Clarifying the definitions of an essential service is an issue that will definitely need to be sorted out after this pandemic has passed. In the mean time, I take it as rather fluid.

[Bobdn]

https://www.stuff.co.nz/national/health/coronavirus/120513149/coronavirus-the-warehouse-will-stay-open-during-lockdown

PM hinting Warehouse will be closed. No surprises there.

[mikeybycrikey]

This trading halt mea culpa must've been pretty embarrassing to write:


The Warehouse Group Limited (“Warehouse Group”) has agreed with the NZX to place the ordinary shares (“WHS”) and the bonds (“WHS020”) of the Group in trading halt. There is considerable uncertainty around what meets the definition of essential businesses and which products and services they are able to provide. The Warehouse Group is in discussions with government on what categories within The Warehouse will be available post escalation to COVID-19 Alert Level 4. The Group will make an announcement when there is better definition of this, and will then request the trading halt is lifted. It is expected that this will be by tomorrow morning.

Hopefully there are some repercussions for being too quick early this morning with their initial trading update.

[Bobdn]

I don't think there should be repercussions. It's going to take businesses sometime to adjust to a centrally planned economy.

[peat]

Clarifying the definitions of an essential service is an issue that will definitely need to be sorted out after this pandemic has passed. In the mean time, I take it as rather fluid.

they did define it, but you did have to read a little bit between the lines to get what they actually meant , which is a sign of it being rushed I guess.

https://covid19.govt.nz/government-actions/covid-19-alert-level/#Essential-businesses

[mikeybycrikey]

I don't think there should be repercussions. It's going to take businesses sometime to adjust to a centrally planned economy.

No, there should be repercussions from NZX at least. The covid web site is clear: "the necessities of life will continue to be available". WHS led the market to believe that they would be open as usual, which would clearly not be true. They may provide some essential goods but that certainly doesn't cover the whole store.

They were also promising that their online delivery would be operating as usual, which I believe is also over-promising.

If WHS were unsure of what the reality was, they shouldn't be promising service they aren't 100% sure they can deliver. They stated a fact this morning, which turned out not to really be a fact.

[ratkin]

No, there should be repercussions from NZX at least. The covid web site is clear: "the necessities of life will continue to be available". WHS led the market to believe that they would be open as usual, which would clearly not be true. They may provide some essential goods but that certainly doesn't cover the whole store.

They were also promising that their online delivery would be operating as usual, which I believe is also over-promising.

If WHS were unsure of what the reality was, they shouldn't be promising service they aren't 100% sure they can deliver. They stated a fact this morning, which turned out not to really be a fact.

We have no idea what went on behind the scenes. The climbdown could have been because of all the squealers kicking up a fuss. They probably had a quiet word, along the lines that they made a misjudgement of public opinion, and it couod not go ahead in its current form.

Warehouse should have just kept quiet and sneaked in under the radar. But then no doubt they would have been accused of not informing the market. So can’t win anyway. All the fuss that was made on here was just sour grapes and bitterness from people thinking they had missed an opportunity of making a quick buck.

[Bobdn]

No, there shouldn't be any repercussions. Here's the definition of essential service, which they can argue they meet. Your turn to say "no, there should be repercussions".

Fast-moving consumer goods:
• Businesses involved in the supply, delivery, distribution and sale of food, beverages and other key consumer goods (but not take-away shops)

I just hope supermarkets rope off booze, fags, confectionery and just stick to the essentials.

[peat]

No, there shouldn't be any repercussions. Here's the definition of essential service, which they can argue they meet. Your turn to say "no, there should be repercussions".

Fast-moving consumer goods:
• Businesses involved in the supply, delivery, distribution and sale of food, beverages and other key consumer goods (but not take-away shops)




but they also said ' essential for maintaining the wellbeing of people ' , but this was too subtle for those looking to find a way.

tho I definitely agree with you , that there should be some grace granted in these trying time

[Panda-NZ-]

food [tick]
beverages [tick]
other key consumer items [tick].

They fit the last part more than the supermarkets but less for on the others.

[ratkin]

food [tick]
beverages [tick]
other key consumer items [tick].

They fit the last part more than the supermarkets but less for on the others.

Can bet they were told they were going to be on the list and the big uproar caused a climdown. The record number of new cases probably also had a bearing, made them realise they had to a appear very tough on the lockdown, and including the warehouse made them look weak in the eyes of the petition brigade

[Ggcc]

Apparently they are given the no tick by someone up above and I agree. They are non essential

[mikeybycrikey]

but they also said ' essential for maintaining the wellbeing of people ' , but this was too subtle for those looking to find a way.

tho I definitely agree with you , that there should be some grace granted in these trying time

Whether they were right or wrong, they should've waited until the company legal department turned up for work before putting out this statement. They clearly didn't.

It's not really that important in the overall scheme, especially with a fast-moving change like this current lockdown. We'll all have forgotten about this in a couple of days.

But it does seem a little reckless to be putting out statements like this, when the market is in a panic about everything, without being 200% sure that they are right.

[silverblizzard888]

The definition will likely be narrowed down further, warehouse will be forced to close because at the end of the day we have to go back to the intention of these definitions and it doesn't make sense for them to open and create more exposure to people as well as creating an uproar around the industry.

I feel sorry for the people who bought the stock at a high today, they stand to lose a bit from this confusion.

[Panda-NZ-]

Supermarkets should remain closed if the lockdown is intended be effective. Closing the warehouse may sadly divert traffic there.

[Ggcc]

I can also see “essential” domino’s not able to operate shortly

[ratkin]

From what I saw today, in terms of the virus, supermarkets are a much bigger worry. Very narrow isles, narrow gaps between the tills so forced far too close to counter staff. Very difficult to avoid close contact with people generally in the supermarkets.

Also they have reduced their hours forcing more people in per hour. Overseas it 24 hours so the vulnerable can go when it is really quiet. Have a feeling the manic malls today, which were like boxing day will have created far more new cases than if everyone had just been at work.

March 24th may become a new public holiday. Virus day

[Panda-NZ-]

Yeah either all should be open or all should be closed. More shops open means more space between people (instead of a limited supply of shops and people with nothing to do). That 15 minute trip to the supermarket will be a risk unfortunately.

[blackcap]

That 15 minute trip to the supermarket will be a risk.

It won't be a 15 minute trip though will it. You will be in a que outside for a good hour or more and then inside it will be the 15 mins if they let in only a few at a time.

[ratkin]

Yeah either all should be open or all should be closed. More shops open means more space between people (instead of a limited supply of shops and people with nothing to do). That 15 minute trip to the supermarket will be a risk.

In Wuhan wasnt all food delivered to the door? No mingling in supermarkets. This is very much lockdown lite, British style and it will fail, may slow the virus down by a week or Two and that about all

[Balance]

Whether they were right or wrong, they should've waited until the company legal department turned up for work before putting out this statement. They clearly didn't.

It's not really that important in the overall scheme, especially with a fast-moving change like this current lockdown. We'll all have forgotten about this in a couple of days.

But it does seem a little reckless to be putting out statements like this, when the market is in a panic about everything, without being 200% sure that they are right.

The government is at sixes and sevens on a few aspects of the lockdowns - I suspect WHS is but one caught in the confusion.

Was listening on to Marcus Lush on the radio this morning and he had just heard from the police that nobody will be allowed out to go to the beach or park. A few listeners then corrected him and said that activity is specifically allowed per the covid-19 website. He attempted to obtain clarification. It wasn't until this afternoon that there was clarification that yes, people are allowed to go for a walk in the park or along the beach but must keep at least 2 meters apart from anybody else, save those within the bubble.

[JeremyALD]

Whether they were right or wrong, they should've waited until the company legal department turned up for work before putting out this statement. They clearly didn't.

It's not really that important in the overall scheme, especially with a fast-moving change like this current lockdown. We'll all have forgotten about this in a couple of days.

But it does seem a little reckless to be putting out statements like this, when the market is in a panic about everything, without being 200% sure that they are right.

Their website STILL says they will remain open and that you can buy online. That is a bit negligent at this stage if not confirmed

[Brain]

I was surprised as were many others when the Warehouse claimed that they were essential. I would go further and say WTF were they thinking to make this announcement. This will do the warehouse irreparable damage in the minds of the public. All the other small businesses , man (or woman) and dog outfits cease trading but no not the Warehouse.
This is another example of poor quality of management and boards in NZ companies. I think shareholders need to wake up to the incompetence of the people that make key decisions in the companies that we invest in.

[silverblizzard888]

I was surprised as were many others when the Warehouse claimed that they were essential. I would go further and say WTF were they thinking to make this announcement. This will do the warehouse irreparable damage in the minds of the public. All the other small businesses , man (or woman) and dog outfits cease trading but no not the Warehouse.
This is another example of poor quality of management and boards in NZ companies. I think shareholders need to wake up to the incompetence of the people that make key decisions in the companies that we invest in.

It does speak of a management team that does it first, then thinks about it later. Surely they could have clarified with the Governement first, this isn't your local corner dairy and each decision they make affects a lot of people.

[winner69]

Nothing surprises you when a pommie whose main experience is time spent the US ends up running a relatively little company in New Zealand ...they just don’t get it.

[mikeybycrikey]

Their website STILL says they will remain open and that you can buy online. That is a bit negligent at this stage if not confirmed

If you look now, the website does seem to full of food and other grocery items. I have seen food in there but it wouldn't usually be a place I would go to buy food.

I'm sure they do provide a useful service, although after seeing their poor PR performance today and their ads on TV, I wonder if it's possible for them to create a PR disaster by not reading the public mood and being proudly open when maybe they shouldn't be.

Maybe it's only the Twitterati on change.org who are against the Warehouse opening, but getting the PR wrong around a pandemic could be costly.

[Cadalac123]

Should have short term traded this for the 40% gain..

[Bobdn]

Warehouse has to close

https://www.stuff.co.nz/national/health/coronavirus/120512184/coronavirus-what-stores-and-services-are-still-open-during-lockdown (https://www.stuff.co.nz/national/health/coronavirus/120512184/coronavirus-what-stores-and-services-are-still-open-during-lockdown)

[Tomtom]

Warehouse has to close

https://www.stuff.co.nz/national/health/coronavirus/120512184/coronavirus-what-stores-and-services-are-still-open-during-lockdown (https://www.stuff.co.nz/national/health/coronavirus/120512184/coronavirus-what-stores-and-services-are-still-open-during-lockdown) Better get moving that Easter stock.

[JeremyALD]

This is a PR disaster. More than 50k new zealanders signed a petition for them to close and their Facebook page has been overwhelmed with backlash.

Making an announcement to the NZX is a big deal. Did they not think Kmart, Farmers and Briscoes would have something to say, as well as the public?

[frostyboy]

I guess management got way to greedy in what they could sell. They could have done something on smaller scale with some isolation measures. Maybe that was indicatively approved by government or they sneakily could have done it.

At 1.30pm I was quick to find out CMC markets don't allow short selling of whs.nzx

[silverblizzard888]

Big race for shareholders tomorrow to see who can get out first, at least staying inside isn't so boring now.

[Hoop]

Big race for shareholders tomorrow to see who can get out first, at least staying inside isn't so boring now.

Hmmm...Lesson learn't? I doubt it....A bear market cycle is operating with the usual sudden temper tantrums...Investors new to the Bear Market have to remember you may be rational and logical but the bear market environment is irrational and illogical punctuated by brief periods of sanity (bear trap).
There wasn't much sanity Tuesday with WHS was there..

[winner69]

Nick on his knees grovelling to Jacinda

You just don't get it Jacinda ...majority of your citizens think Red Sheds are ESSENTIAL

Grovelling pom better than a whinging one

[winner69]

Funny if Jacinda and her government back down?

[winner69]

Nick going to the Courts to get a judicial review?

Think the courts are in lockdown anyway

[Beagle]

Nick on his knees grovelling to Jacinda

You just don't get it Jacinda ...majority of your citizens think Red Sheds are ESSENTIAL

Grovelling pom better than a whinging one

LOL- see need all the humour we can get these days.

[iceman]

Nick going to the Courts to get a judicial review?

Think the courts are in lockdown anyway

No they are not. "essential services" my daughter tells me. She works at one.

[stoploss]

No they are not. "essential services" my daughter tells me. She works at one.

Here is the full list
https://covid19.govt.nz/government-actions/covid-19-alert-level/essential-businesses/

[mikeybycrikey]

The WHS apology tour rolls on. Big note on their website saying that they are closed. No mention of online being open or closed, I imagine they are still working out details.

In other news: working from home hasn't involved a lot of working for me so far this week.

[BlackPeter]

Nick going to the Courts to get a judicial review?

Think the courts are in lockdown anyway

They are not. Seen as essential.

[ratkin]

Where shareprice ending up? 1.70 1.80?

[Jay]

Most online would be shut if not essential I would have thought. As you need people to make the orders up, more people together more chance of virus spreading.
I have had a heap of email from outlets that I have purchases from in the past saying no more online orders either as well as the physical store being closed.

Though did order something from Fishpond last last week - coming from the UK so it may come thru... sometime

[ratkin]

Here is the full list
https://covid19.govt.nz/government-actions/covid-19-alert-level/essential-businesses/

Why Hotels not on the list? I know they are open but could not see them on there

[Panda-NZ-]

On the plus side this may help them meet the needed 30% revenue drop to get a wage subsidy.

[peat]

Why Hotels not on the list? I know they are open but could not see them on there

accommodation for people providing essential services only.

[ratkin]

accommodation for people providing essential services only.

Where are tourists supposed to stay ?

[winner69]

They are not. Seen as essential.

Supreme Court locked down along with some other courts

[ratkin]

We may hear something in the 1pm bulletin

[traineeinvestor]

Where are tourists supposed to stay ?

I'm one of them. I've got at least 4 weeks in a small serviced apartment with my daughters (who will be doing online classes) ... only it will be unserviced for the duration of the lockdown. Doing all our own housekeeping isn't a problem but there will be practical difficulties in keeping the rooms clean for the duration (e.g we have to share the vacuum cleaner with other guests) and the fridge is tiny (meaning more frequent trips to the supermarket for perishable items). I can see a few other issues as well but it's all manageable. We're just lucky it wasn't a regular hotel.

I understand and agree with the decision to close as many shops as possible but it will be more difficult for some than for others.

[peat]

Where are tourists supposed to stay ?

there shouldn't be any new ones!

[winner69]

Have WHS shares gone into lock down

Wonder what we the state of the market will be when lock out is over.

[Panda-NZ-]

If I was them I would announce it during the last trading hour to get the dip out of the way. The halt will be lifted tommorow at the latest.

[Cadalac123]

To be honest, traders who bought in yesterday did a good play, no one could have predicted this.

Hope some of you actually pulled out that juicy 40% gain

[ratkin]

To be honest, traders who bought in yesterday did a good play, no one could have predicted this.

Hope some of you actually pulled out that juicy 40% gain

Yeah and there was plenty of warning to get out, opposition to it was growing all morning, a petition came out, 500 plus negative posts on stuff etc.
Should not cost them anything if they got in at 1.75 will probably settle around there anyway with the current positive market sentiment. Of course, tomorrow another day. Regardless of the lockdown, they had Two days of xmas like sales in the last couple of days. Probably equal to about Twenty normal days

[Cadalac123]

Long-term still a great stock and hold. Argue sales will skyrocket sometime down the track too if peoples financial positions are not so great. Might even be a great pickup if it drops a lil haha

[peat]

I know its not PC but I thought they gave it a go to stay trading and if I was an owner I would expect no less.
But of course Andrew is right with his comment "If you're looking for a loophole, you're not seeing the point".

[Lola]

Long-term still a great stock and hold. Argue sales will skyrocket sometime down the track too if peoples financial positions are not so great. Might even be a great pickup if it drops a lil haha

Sorry disagree... the days of cheap stuff from China is over. Tarrifs will return and free trade agreements are thing of the past. Todays generation will see to it ...and it will last for another two gererations when things will naturally change again. Thankfully no more cheap plastic chairs at the BBQ...but a few decently crafted pinus radiata numbers. The throw away generation will be right now learning a lesson. So ironic that the hand that feeded them (China) has bitten them. Truth, once again, is stranger than fiction.

[Panda-NZ-]

Sorry disagree... the days of cheap stuff from China is over. Tarrifs will return and free trade agreements are thing of the past. Todays generation will see to it ...and it will last for another two gererations when things will naturally change again. Thankfully no more cheap plastic chairs at the BBQ...but a few decently crafted pinus radiata numbers. The throw away generation will be right now learning a lesson. So ironic that the hand that feeded them (China) has bitten them. Truth, once again, is stranger than fiction.

Even if true, who would be selling them? they are well-positioned for the medium term once the lockdowns stop given the slowing economic situation.

[ratkin]

The warehouse has many more sources for its products than just China, and even the chinese supply lines were up working very quickly.
Do not be fooled by yesterdays petition, there are plenty who love the warehouse. Last couple of days it has been heaving. In a recession it will be popular as it was in the early 90s the last time we had mass unemployment. I would be more concerned about Noel Leeming than the red sheds

[steveb]

they are going to take a huge hit on easter eggs.I saw aisles full of them on tuesday.they might be able to do a deal with the supermarkets to take them off their hands,but unless the god squad postpones easter it's dead stock.

[Sideshow Bob]

they are going to take a huge hit on easter eggs.I saw aisles full of them on tuesday.they might be able to do a deal with the supermarkets to take them off their hands,but unless the god squad postpones easter it's dead stock.

They can just talk to a couple of their shareholders then.....

[stoploss]

They can just talk to a couple of their shareholders then.....

I’m pretty sure one of them bailed , if not both .

[winner69]

they are going to take a huge hit on easter eggs.I saw aisles full of them on tuesday.they might be able to do a deal with the supermarkets to take them off their hands,but unless the god squad postpones easter it's dead stock.

Non essential business ...so in theory no access to stores .......so can’t move the chocolates on.

[winner69]

Suppose reasonable excuse from Nick for their stuff up

Sometimes doesn’t pay to have ‘good faith’

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/WHS/350675/319647.pdf

[blackcap]

Suppose reasonable excuse from Nick for their stuff up

Sometimes doesn’t pay to have ‘good faith’

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/WHS/350675/319647.pdf

And bye bye dividend.

[blackcap]

they are going to take a huge hit on easter eggs.I saw aisles full of them on tuesday.they might be able to do a deal with the supermarkets to take them off their hands,but unless the god squad postpones easter it's dead stock.

Although surely chocolate has a pretty long expiry date? Surely they can just sell them in 4 weeks time? Like they do with the eggs that they do not sell before Easter normally. 50% off or whatever it is.

[Sideshow Bob]

I’m pretty sure one of them bailed , if not both .

Sorry you're right!

Must Keep Up Bob! :sleep:

[trader_jackson]

This is extremely naughty for an nzx 50 company to claim they are an essential service and therefore will remain open.
My thinking is they will not be allowed to stay open and, at best, be online only.

Surprised the share price is in the $1.60's, should really be sub $1.50... paying everyone in full (no doubt restructure on the way for May, but for now it looks like a nice PR job) whilst no revenue is coming through the door, combined with their food items (eg Easter) being worthless come re-open, and to top it off, a potential half a million dollar fine from the NZX.

[Balance]

Surprised the share price is in the $1.60's, should really be sub $1.50... paying everyone in full (no doubt restructure on the way for May, but for now it looks like a nice PR job) whilst no revenue is coming through the door, combined with their food items (eg Easter) being worthless come re-open, and to top it off, a potential half a million dollar fine from the NZX.

Highly unlikely that NZX can impose $500k fine on WHS - if it is true they use legal advice. Just needs to employ a QC at $2k an hour to take on NZX - wins every time when there's a legal opinion.

Chocolates unsold (Easter ones) will be recycled - sell or return as I understand it as is the case with Christmas chocolates.

[kiwico]

Dividend confirmed as being cancelled.

https://www.nzx.com/announcements/350723

[trackers]

Surprised the share price is in the $1.60's, should really be sub $1.50... paying everyone in full (no doubt restructure on the way for May, but for now it looks like a nice PR job) whilst no revenue is coming through the door, combined with their food items (eg Easter) being worthless come re-open, and to top it off, a potential half a million dollar fine from the NZX.

Well at least when you're paying minimum wage the govts ~$550 a week will go a long way to covering those salaries. Not so for businesses that have professionals

[Snoopy]

Well at least when you're paying minimum wage the govts ~$550 a week will go a long way to covering those salaries. Not so for businesses that have professionals.


'Minimum wage'? I thought WHS had moved to the 'Living Wage' for all staff?

SNOOPY

[winner69]

'Minimum wage'? I thought WHS had moved to the 'Living Wage' for all staff?

SNOOPY

....and HUGE BONUSES for senior management

[ratkin]

What is happening with the warehouse. Back up to 1.95. People were too quick to bail. Everyone loves a bargain.
All the doomsayers and vultures have suddenly melted away. But no doubt they will be back next time the stock drops in price

[winner69]

Jacinda sounded grumpy on radio this morning and basically said The Warehouse were telling porkies when they said officials had given them the all clear to stay open.

[Ogg]

https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=12321012

Seems like you can now buy heaters and whiteware online.

Surely the warehouse online can now reopen?

[ratkin]

https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=12321012

Seems like you can now buy heaters and whiteware online.

Surely the warehouse online can now reopen?

You would think so, at least once they have given the govt their list. Plenty of Noel Leemings products would fit the bill. I wonder if TVs are considered essential too. You would think so, as for many they are the only source of information

[ratkin]

Looks like they back in the game, did not take long

[Beagle]

If the lockdown extends into May I would expect further relaxation of what is essential goods. People will be needing warm winter clothing. That might see HLG back in the game.

[ratkin]

https://www.thewarehouse.co.nz/c/essentials

Pretty much everything, can see them doing well. They have not wasted anytime updating their website or the website of Noel Leeming
Great opportunity for the warehouse to cement its online offerings as a common way of shopping, so hopefully once the lockdowns finish people will continue to use them rather than overseas sites.

[Sideshow Bob]

https://www.thewarehouse.co.nz/c/essentials

Pretty much everything, can see them doing well. They have not wasted anytime updating their website or the website of Noel Leeming
Great opportunity for the warehouse to cement its online offerings as a common way of shopping, so hopefully once the lockdowns finish people will continue to use them rather than overseas sites.

On the first page is a stainless steel spaghetti server.

Surely that is essential......….. :confused:

[ratkin]

On the first page is a stainless steel spaghetti server.

Surely that is essential......….. :confused:

Pasta the new go to lock down staple

[Sideshow Bob]

Pasta the new go to lock down staple

Prefer penne myself.

[ratkin]

Lots of complaints on Reddit that overseas online shopping firms are still ok to send to NZ
ezibuy for example shipping direct from its Australian warehouse.

[steveb]

this from stuff:-
Masses of easter eggs left idle on The Warehouse shelves due to the countrywide lockdown will be donated to charity.
The Warehouse has decided to donate it's unsold easter eggs to Woman's Refuge and Kiwi Harvest.
Good on them at least some deserving kids have something to look forward to,also good PR for the warehouse

[BlackPeter]

this from stuff:-
Masses of easter eggs left idle on The Warehouse shelves due to the countrywide lockdown will be donated to charity.
The Warehouse has decided to donate it's unsold easter eggs to Woman's Refuge and Kiwi Harvest.
Good on them at least some deserving kids have something to look forward to,also good PR for the warehouse

It is obviously ridiculous that Countdown and their ilk are allowed to sell their Easter eggs and the Warehouse is not. This is a scandal with our government favoring one business over one other.

[winner69]

It is obviously ridiculous that Countdown and their ilk are allowed to sell their Easter eggs and the Warehouse is not. This is a scandal with our government favoring one business over one other.

..especially when Jac said the Easter Bunny was essential

[steveb]

especially as countdown is foreign owned

[Sideshow Bob]

It is obviously ridiculous that Countdown and their ilk are allowed to sell their Easter eggs and the Warehouse is not. This is a scandal with our government favoring one business over one other.

That's the rub isn't it - supermarkets are seen as essential - but they don't just sell essentials.

Where as the likes of WHS & M10 sell essentials, and almost have to ask what is the harm in putting non-essentials in an order of essentials.....

I see there was a seller of sex toys on the news last night trying to say they were an essential business!

[Sideshow Bob]

https://www.stuff.co.nz/business/121071479/coronavirus-customers-disappointed-by-noel-leeming-selling-items-out-of-stock

Good for sales in the environment, but not a good look. Understand getting caught short on some products, but poor communication.

[ratkin]

https://www.stuff.co.nz/business/121071479/coronavirus-customers-disappointed-by-noel-leeming-selling-items-out-of-stock

Good for sales in the environment, but not a good look. Understand getting caught short on some products, but poor communication.

Noel Leemings have been doing it for years. Bought a Bose headphone cable online from them Two years ago, was nearly Six months later I actually received it. They have no hesitation in taking money for orders for stuff they do not even have in stock.

[JeffW]

https://www.stuff.co.nz/business/121...s-out-of-stock (https://www.stuff.co.nz/business/121071479/coronavirus-customers-disappointed-by-noel-leeming-selling-items-out-of-stock)

Good for sales in the environment, but not a good look. Understand getting caught short on some products, but poor communication.




On Friday, after a 52 minute wait on the phone, I was promised that the "Escalation Team" would contact me within the day about my undelivered order. I have yet to hear back from them. Since then, I've emailed the company directors personally (with no response I might add) and have now made a complaint to the Commerce Commission. Needless to say, I will be selling my shares first thing Monday morning. The lack of communication is appalling, and I want no part in a company that treats its customers with such contempt.