WHS - Warehouse Group

[Entrep]

These days are long gone

https://www.youtube.com/watch?app=desktop&v=DbVNrfCHNOo

[Sideshow Bob]

These days are long gone

https://www.youtube.com/watch?app=desktop&v=DbVNrfCHNOo

I prefer this version for a Friday arvo.......:laugh:

https://www.tiktok.com/@jammylammyofficial/video/7204717311289199874

[Traderx]

No market update since November, we are now in mid Feb, T7 continues to have their banner on website saying massive delays on delivery. WHS continues with their half-hearted grocery strategy, stores remain shabby. SP continues to plumb new lows.

Disc - no holding

[winner69]

JB HiFi half year December report NZ sales up 5% but boosted by 3 new outlets …comparable sales down 1.2%

Sales $169m …resulting in small LOSS

Jan month saw comparable sales down 4% (with new stores +8%)

Can’t imagine Noel Leemings having a good half year based on this

[Balance]

Having done a bit of shopping recently with time to spend comparing pricing and offering across different stores, T7 and Noels left me completely underwhelmed with what was on offer, store condition/organisation and tidiness. Gave up on trying to find any staff available or with sufficient knowledge to assist as well.

Pricing of consumer level products is also pretty much the same as anywhere else for equivalent quality, with T7 a surprising amount higher. Simply reinforced in my mind why I avoid the group 99% of the time and take my money elsewhere.

Long gone are the days when a bargain could actually be found.

If you want a bargain, go to Panda Mart currently only 1 store in Auckland. Things are cheap as! I understand the owners are looking to roll out all over NZ.

WHS has its work cut out to compete on price with them.

[bull....]

About 40 Tauranga Warehouse staff to find new roles as Cameron Rd site closes
https://www.nzherald.co.nz/bay-of-plenty-times/news/about-40-tauranga-warehouse-staff-to-find-new-roles-as-cameron-rd-site-closes/GRCCBR7TG5G75P2DYOR56TO56U/

[winner69]

About 40 Tauranga Warehouse staff to find new roles as Cameron Rd site closes
https://www.nzherald.co.nz/bay-of-plenty-times/news/about-40-tauranga-warehouse-staff-to-find-new-roles-as-cameron-rd-site-closes/GRCCBR7TG5G75P2DYOR56TO56U/

A middle manager seems to have more clues than Nick -

The Warehouse regional manager Daniel Prew said closing the doors on the Cameron Road store was not an easy decision “but after looking at things like how the store’s been doing and how our customers shop, we had to make the tough call”.

[ralph]

If you want a bargain, go to Panda Mart currently only 1 store in Auckland. Things are cheap as! I understand the owners are looking to roll out all over NZ.

WHS has its work cut out to compete on price with them.
Them bloody Pandas are going to rule the world soon ,poor owd kiwi warehouse:eek2:

[nztx]

Them bloody Pandas are going to rule the world soon ,poor owd kiwi warehouse:eek2:


You got wonderful way wiv werds my friend - maybe Warehouse Pandas just need new paint job & fresh battery ? :)

[Sideshow Bob]

This should "brighten' shareholders day.....!! :t_up:

https://www.scoop.co.nz/stories/BU2402/S00116/the-warehouse-group-stores-make-historic-switch-to-solar.htm?utm_source=ST&utm_medium=email&utm_campaign=ShareTrader+AM+Update+for+Wednesday+1 4+February+2024

[malreid]

Greenwashing given the amount of short lived junk they import and sell to the masses every Easter, Halloween and Xmas on top of the generally short lifespan of cheap low quality products.

[ralph]

Greenwashing given the amount of short lived junk they import and sell to the masses every Easter, Halloween and Xmas on top of the generally short lifespan of cheap low quality products.

A K A Bargains

[Joshuatree]

About 40 Tauranga Warehouse staff to find new roles as Cameron Rd site closes
https://www.nzherald.co.nz/bay-of-plenty-times/news/about-40-tauranga-warehouse-staff-to-find-new-roles-as-cameron-rd-site-closes/GRCCBR7TG5G75P2DYOR56TO56U/
Was inevitable.It was the first Warehouse in Tauranga I believe before Fashion Island ,The Lakes and other shopping centres built outside Tauranga,in what used to be Turner's and Growers fruit and veg auction building.Its been ghostly in there for years.At least two other warehouse stores here.
.Lease liabilities 2023 re $100 mill,prop plant and equipment re $223 mill .How many buildings they own ,don't know.Tga City Council has bought it for indoor sports

[Recaster]

Apologies if already mentioned but Temu.com seems to be gaining rapidly in popularity and has many similar product categories to WHS.

[Entrep]

Apologies if already mentioned but Temu.com seems to be gaining rapidly in popularity and has many similar product categories to WHS.

Temu, Aliexpress, Kmart - the list of competitors lining up to eat the Warehouse's lunch is endless, and they haven't got a clue how to respond.

[Snoopy]

Temu, Aliexpress, Kmart - the list of competitors lining up to eat the Warehouse's lunch is endless, and they haven't got a clue how to respond.


What about linking up with a bit of royal patronage, to give their whole stock range a lift: The new branding being:

'Dealer of Everything King's Approved'

Yes its a mouthful, but you could promote the company via its new acronym: 'DEKA'. A name with a nice (yet strangely familiar?) ring to it?

SNOOPY

[thedrunkfish]

A bargain would be good quality, brought cheaply relative to normal prices.

[ralph]

A bargain would be good quality, brought cheaply relative to normal prices.
This Bargain you are referring to is that WHS s p ,or the Bargains to be brought in the warehouse store

[winner69]

WHS shareprice down 7% to 129 today

About the lowest it’s been this century

Bit suspicious if they do a KMD tomorrow and have a bad update

[nztx]

WHS shareprice down 7% to 129 today

About the lowest it’s been this century

Bit suspicious if they do a KMD tomorrow and have a bad update


Oh .. a reverse dividend you mean ? no impute cr's and no withholding things back :)

What sort of bargain basement price do you reckon they will strike for that one and will it include
a CFO's scalp and a few boardroom heads ? ;)

[Forrestdun]

Oh .. a reverse dividend you mean ? no impute cr's and no withholding things back :)

What sort of bargain basement price do you reckon they will strike for that one and will it include
a CFO's scalp and a few boardroom heads ? ;)

At this stage it should be all of them right?

[FTG]

Chart first gave ominous signals back in Jan 2022, and has looked hideous (at least for the Bulls) ever since. Showing oversold signals on the monthly charts, but FIB pointing to sub $1 being quite possible by EOCY24. Just a feeling, but next update may see a further, and significant, SP capitulation?

IMV things have clearly been amiss at WHS for quite a while. Financial metrics, operational metrics (poor execution) and MV (SP) all singing (moaning) the same tune. Sad to see the degradation of what used to be an iconic Co. Can imagine PE & Trade picking off pieces in the not too distant future. :(

GLTAH

[nztx]

Time to pull the Knight saviour & extraordinaire out of the retirement cupboard to throw around some magic dust ? ;)

[nztx]

At this stage it should be all of them right?


off with their kneecaps for sleeping on the job & failing to perform on required number of buckets full ? ;)

[850man]

T7 sold for $1
https://www.nzx.com/announcements/426627

[Sideshow Bob]

Surprised, not surprised.

Expect they will be better operators than WHS.....

[Muse]

pretty good evisceration of shareholder funds.

but a good outcome to be able to walk away from it.

[Rawz]

Nick should resign

[Muse]

Nick should resign

Absolutely.

[Sideshow Bob]

Absolutely.

Write-off of $55-65m.

Shameful.

[winner69]

Surprised, not surprised.

Expect they will be better operators than WHS.....

T7 joins a big stable of operations ….. including Starbucks, Burger King, Hannah Shoes & No. 1 Shoes

[Muse]

T7 joins a big stable of operations ….. including Starbucks, Burger King, Hannah Shoes & No. 1 Shoes

All turnarounds and carve outs. Starbucks - wasnt that a carve out from RBD. BK was a massive failure for its previous owner. TP7 a carve out from WHS. Hannah shoes ex Hellaby Holdings.

[winner69]

WHS apparently paid $79.3m for T7 and another $50m on additional companies to bolster the business.

Already written of the $40m goodwill involved

Be interesting what makes up the additional $55m/$65m write off ….probably big stock adjustments along with employee leave etc provisions ….and maybe even some rent subsidies

What a disaster. …but never mind Nick says the net cash impact (post tax) of the sale will be close to zero….so no worries

Should frame the $1 coin and frame it and hang in Board Room as a reminder of past follies

[Sideshow Bob]

Will be interesting to see if Tahua "got a bargain.....".

Surprisingly trading down only 3c/2.4% so far today.

Although trading at the lowest level this century already.....:sleep:

[moose]

Will be interesting to see if Tahua "got a bargain.....".

Surprisingly trading down only 3c/2.4% so far today.

Although trading at the lowest level this century already.....:sleep:

WHS down about 25% in past 2 weeks or so despite no news/updates......Obviously this deal didn't happen overnight. Likely plenty of insider trading from WHS senior management and their friends & family.
But this is the NZX so don't expect anything from the regulators.

[Balance]

Gross mismanagement of T7 by the Warehouse and shows that the directors & management have no transferable skills in running businesses outside of the declining fortunes of WHS ‘classic’.

[iceman]

Deleted deleted

[samjaynz]

I worked for Torpedo 7 (well part of the business that had actually been acquired by T7 before itself being acquired by The Warehouse Group) about a decade ago. I technically had a 'management' position - at least based on my job title - working in a back office and met all the group managers, used to be privy to the sales reports that would be distributed each morning, sat in on management meetings and all that jazz.

Honestly back then it felt like quite a fun, dynamic place to work (particularly with the more "swashbuckling" sub-brands e.g. 1 Day and Shotgun Supplements) and I'm proud of the work my little team did, but some internal changes among more senior management made it clear the writing was on the wall and I looked for new pastures. I

I got out just before there was a big restructure, around the time that Grayston came on board. I recall being in a whole bunch of trouble with my manager for telling him that I thought Grayston looked like an incompetent - I wonder if my then-boss would be willing to eat his words all these years later?

I occasionally shop at T7 but am always disappointed with the service, the selection and the seeming incapability of their systems to actually determine what stock is where.

[winner69]

I worked for Torpedo 7 (well part of the business that had actually been acquired by T7 before itself being acquired by The Warehouse Group) about a decade ago. I technically had a 'management' position - at least based on my job title - working in a back office and met all the group managers, used to be privy to the sales reports that would be distributed each morning, sat in on management meetings and all that jazz.

Honestly back then it felt like quite a fun, dynamic place to work (particularly with the more "swashbuckling" sub-brands e.g. 1 Day and Shotgun Supplements) and I'm proud of the work my little team did, but some internal changes among more senior management made it clear the writing was on the wall and I looked for new pastures. I

I got out just before there was a big restructure, around the time that Grayston came on board. I recall being in a whole bunch of trouble with my manager for telling him that I thought Grayston looked like an incompetent - I wonder if my then-boss would be willing to eat his words all these years later?

I occasionally shop at T7 but am always disappointed with the service, the selection and the seeming incapability of their systems to actually determine what stock is where.

Sad story in a lot of ways there samjay

One hopes that being operated by guys who have some customer empathy T7 might be great again

I was in a meeting with Nick shortly after he turned up at WHS and had same thoughts as you …..think I said to myself heck what was the Board thinking taking him on.

[Sideshow Bob]

I occasionally shop at T7 but am always disappointed with the service, the selection and the seeming incapability of their systems to actually determine what stock is where.

That is completely my experience too. Hit & miss for service instore, but online & call centre is rubbish. Buy things and then out of stock - latest one was using a voucher to buy and refunded but now can only spend online.

Thanks for sharing Samjay - very interesting and no doubt you've moved on to greener pastures....:)

[Entrep]

This one shows absolutely no signs of turn around.

Kmart killing them
Torpedo 7 and TheMarket killing them

They need to make some hard decisions.

Well, Torpedo 7 is gone. 1 out of 3.

Next, ditch TheMarket.
Then, ditch the CEO / board and get someone in with a clue how to respond to Kmart, Temu, etc etc.

[malreid]

...how to respond to Kmart, Temu, etc etc.
I think one of the problems WHS and Kmart is they are fighting for lowest common denominator status when it comes to physical presence. The offerings are little different, pricing is similar and store tidiness/customer service of both treads a fine line between the below par and shambolic. At least here across Auckland.

Can't speak to the online experience though.

[Comyn]

Unfortunately it may end up like Deka.

[kiwijay]

I'm kind of surprised at how bad Torpedo7 has tracked... I know it's underperforming, but I'm not sure it's a $1 firesale sort of deal. I think they were leaders in quite an overpriced outdoor segment. Their closest competitors were Kathmandu, Macpac etc, and they don't have the gear or equipment (e.g. cycles) that T7 has. If anything I think they didn't do a good enough job of positioning themselves as the one stop shop if you're leaving Auckland for the weekend.

I think the quick sale in itself demonstrates the incompetence of Grayson and the team. I see huge potential that Tahua will realise and laugh to the bank with.

With regards to NL, they're really just another player in a very competitive electronics landscape... Competing against PB Tech, JB HI FI and HN but doing it poorly - the service and price points are lacking, and you often get sales hungry vulchers instead of techies wanting to help. I think their real risk is here being lost in a crowded race.

Lastly we come to the Warehouse - what a absolute clown show. 2024 and we still have the $2 goods at $10 prices. The concrete floors and open racks are a far cry from the aesthetic and bright Kmart experience. Across my millennial group, Kmart is seen as passable (and a right of passage for a first flat), whereas the Warehouse is just disdain. On top of this the smart shoppers but from AliExpress and Temu who can drop ship within the week now.

I won't touch on The Market... I don't even know what that frankenstein of a site is...

In conclusion, I think they've shot the wrong horse, and now they're really screwed for the race ahead.

[nztx]

Write-off of $55-65m.

Shameful.


that's 15% of the 2023 FY 31 Jul Shareholders Funds down the toilet (if we say midpoint $60 mil write off)

How's the rest of the ship doing ? still going forwards or crawling along on a fraction of the steam ? ;)

[ratkin]

I think one of the problems WHS and Kmart is they are fighting for lowest common denominator status when it comes to physical presence. The offerings are little different, pricing is similar and store tidiness/customer service of both treads a fine line between the below par and shambolic. At least here across Auckland.

Can't speak to the online experience though.

Kmart seem miles ahead, always huge queues while the warehouse near empty. Only places warehouse does well is in places without much competition. Good thing with the warehouse was it it was an easy stock to escape from as the writing had been on the wall for some time.

[winner69]

I sense Nick’s next big disaster will be ‘focusing’ on selling heaps more food …heaps more in most stores that is …not just a fit of butter and a few carton of eggs but heaps of everything

I don’t think Nick quire grasps that you need more than ‘foot print’ to make money selling heaps of food

[Entrep]

Kmart are miles ahead. We got a TON of kids stuff from them, from toys to necessities. So do all our friends.

We would never even think to go the Warehouse.

[Sideshow Bob]

Kmart are miles ahead. We got a TON of kids stuff from them, from toys to necessities. So do all our friends.

We would never even think to go the Warehouse.

WHS Red Shed stores are just depressing......

Dunedin KMart closed due to semismic risk a few years ago. About to reopen in South D. But an indication of the pull of KMart (and how bad the WHS is) is that companies have been organizing shopping trips to KMart Invercargill.

https://thespinoff.co.nz/business/30-10-2022/were-taking-this-bus-to-invercargill-kmart

Old news, but a sad inditement on a few levels, but pretty sad for the Warehouse.

Not KMart and only a WHS where I live - been in the Red Shed once and actively avoid the place.

[777]

Went into KMart once. Total rubbish. Never been back.

[whatsup]

WHS Red Shed stores are just depressing......

Dunedin KMart closed due to semismic risk a few years ago. About to reopen in South D. But an indication of the pull of KMart (and how bad the WHS is) is that companies have been organizing shopping trips to KMart Invercargill.

https://thespinoff.co.nz/business/30-10-2022/were-taking-this-bus-to-invercargill-kmart

Old news, but a sad inditement on a few levels, but pretty sad for the Warehouse.

Not KMart and only a WHS where I live - been in the Red Shed once and actively avoid the place.

The market is doing to the WHS what the WHS did to the Moms and Pops stores all around N Z all those years ago, now Mr T you know how it feels !!!

[samjaynz]

That is completely my experience too. Hit & miss for service instore, but online & call centre is rubbish. Buy things and then out of stock - latest one was using a voucher to buy and refunded but now can only spend online.

Thanks for sharing Samjay - very interesting and no doubt you've moved on to greener pastures....:)

Certainly greener pastures now, but I look back very fondly on my time there (well most of it - the last few months before I left/T7 group was restructured with the sub-brands being rolled into the T7 stores was fairly miserable as most of us sensed what was coming; I was just fortunate to get out before the boat really started capsizing).

If I think about the issues that were present during my time, many of them did seem to go back to the fundamental issue that upper-level Warehouse Group management was "detached" from the reality of what the customers of younger, fresher brands like T7, 1-Day, No1 Fitness and Shotgun Supplements (all under the T7 group) wanted, as well as having merchandisers who just didn't "get it".

Take 1-Day, for example. In its heyday 1-Day was very popular because it offered a tiny number of genuinely good deals each day. Once the stock was gone it was gone. The 'OG" 1-Day team understood this. However, over time it became a dumping ground for group crap that the other brands couldn't sell, with barely any good deals (the only ones worth buying were the 'diamond deals'). This is because upper management just thought they could sell any old garbage and people would buy it because of the time-limited novelty.

No1 Fitness, which was once again a good little business in its heyday, tried to branch out into selling branded apparel from Nike, Adidas etc because the merchandisers were able to source some cheap product. Management thought this was a great idea. The only issue? It was last season's stuff (in fact older than that). Because NZ doesn't have a huge population of East European 'Adidasky' tracksuit wearers, hundreds of thousands of dollars of stock wound up languishing in the warehouses until we wound up giving it away for free with the purchase of fitness equipment - even then I recall customers literally saying they didn't want it.

Shotgun Supplements, there was an obsession with trying to get into selling home branded supplements (which did carry hugely superior margin) but that's not what customers wanted - they wanted the 'name brand' supplements, and where the opportunities were was to then upsell/cross-sell the order e.g. customer buys a protein powder with about 5% margin on it but then you sell them the pre-workout with a very healthy margin and it all balances out.

I learned a lot, which was a good thing.

[winner69]

Wonder how half year to January

No update

Must have been a good un’

Solid sales, good margins and expenses under control = good result (normalised / adjusted that is)

[Panda-NZ-]

It was last season's stuff (in fact older than that). Because NZ doesn't have a huge population of East European 'Adidasky' tracksuit wearers, hundreds of thousands of dollars of stock wound up languishing in the warehouses until we wound up giving it away for free with the purchase of fitness equipment - even then I recall customers literally saying they didn't want it.


Hehe. I do notice that Kmart has "fashion sense" and actually pays attention to trends. WHS can't compete there.

[mike2020]

Obviously has to be a buy since we now have twr sky and atm as market darlings. While hgh pgw all the rv stocks are ready to be euthanized. Its like a worm hole to an alternative reality opened up.

[nztx]

Is this a bargain yet ? :)

Has St Stephen introduced the Singer & Piano player for the Bargain Basement Showstopper ? :)

[winner69]

Worldliness sales data suggests WHS could have had bad start to new year F25



But spending was down in electronics/computer stores (-16.4%), department stores (-26.1%), clothing shops (-1.5%), furniture outlets (-6.0%), appliance stores (-9.3%) and wholesale/retail hardware merchants (-0.6%), Worldline said..

https://businessdesk.co.nz/article/retail/worldline-data-shows-retail-growth-slowing?utm_source=Digest&utm_medium=email

[bull....]

pretty grim half yr report but the shocker is the start to second half

wow feb sales down double digits :scared:

[Filthy]

yet still paying a divie. crazy. at least KMD had more sense.

[Sideshow Bob]

https://www.nzx.com/announcements/428233

The Warehouse Group simplifies further to focus on core brands
• Total Group continuing sales1 $1.633 billion in FY24 H1, down 4.9% compared to FY23 H1
o The Warehouse sales were $965.6 million, down 4.7%
o Warehouse Stationery sales were $117.9 million, down 5%
o Noel Leeming sales were $544.4 million, down 2.2%• Gross Profit $559.7 million, down 0.4%
• Gross Profit Margin increased 160 basis points to 34.3%
• The Warehouse Gross Profit increased 1.6% to $374.3 million, with Gross Profit Margin up 250basis points to 38.8%
• Continuing Adjusted Net Profit After Tax (NPAT) for the period from continuing operationsincreased 18.9% to $30.7 million
• Total Group Reported Net Loss after Tax, including the impairment of Torpedo7 assets andrestructuring costs, of $23.7 million
• Net Debt of $18.7 million, significantly down from $83.4 million at FY23 H1, with availableliquidity of $471.3 million
• FY24 Interim Dividend declared 5.0 cents per share.

[Filthy]

feb sales down double digits :scared:

probably because all they've got on the shelves are Easter Eggs eh lol.

[Sideshow Bob]

Tony coming on board also.....would have thought had enough going on with MFB.....

https://www.nzx.com/announcements/428234

[winner69]

Pretty amazing effort ……even better than Briscoes

Continuing Adjusted Net Profit After Tax (NPAT) for the period from continuing operations increased 18.9% to $30.7 million

18.9% increase in profit in these tough times …wow

Love it when you cut the rot out and discard it and forget about it eh

TheMarket.com being sold or closed down as well

[bull....]

Tony coming on board also.....would have thought had enough going on with MFB.....

https://www.nzx.com/announcements/428234

on boarding for the big profitable food push. but foodstuff's and woolworths tell us the margins are only 2% on food lol

[Toddy]

We need these NZ retail companies to stay profitable. If they don't then NZ will suffer as stores are closed.

From a macro point of view it's very concerning where we are heading.

It does look like management are making better decisions. But who really wants to stay invested in the WHS at the moment as the turn around will take a few financial years.

[bull....]

We need these NZ retail companies to stay profitable. If they don't then NZ will suffer as stores are closed.

From a macro point of view it's very concerning where we are heading.

It does look like management are making better decisions. But who really wants to stay invested in the WHS at the moment as the turn around will take a few financial years.

outfits like the warehouse are stuffed ( not noel leeming ) as they cannot compete against the likes of temu/shein in the same product categories

[Entrep]

Now fire the CEO and this could be a buy. Absolute plonker.

[Rawz]

outfits like the warehouse are stuffed ( not noel leeming ) as they cannot compete against the likes of temu/shein in the same product categories

I bought $180 worth of winter kids clothes from temu the other day. Hasnt been delivered yet. Looking forward to seeing the quality and if sizing is correct. Everything was $5 to $10 a piece.

Usually we buy our kids clothes from Farmers. Their price to quality is pretty good. But when you are buying 3 long sleeve t-shirts for $16.77 its hard to pass up. Farmers current special is buy 2 for $30!!!

Temu is a major major issue for the WHS and others. Not sure how the big brick and mortar stores will be able to beat it?

[Sideshow Bob]

on boarding for the big profitable food push. but foodstuff's and woolworths tell us the margins are only 2% on food lol

Tui ad right there.....

From what I understand, it is 5% net to the bottom line for a Foodstuffs owner.

While I would think the perception of the Red Sheds is reasonably negative compared to Kmart etc, their efforts of food will be appreciated by many. Not sure how much 'cross-sales' takes place, but must increase food traffic.

[LaserEyeKiwi]

Now fire the CEO and this could be a buy. Absolute plonker.

Actually he has taken a big pivot here - shedding his kingdom building by closing down themarket.com and selling off T7. Gross margins increasing, staffing costs down. Net debt almost down to zero, winding down tech capex.

I’m not holding, but looks like a fairly responsible turn around all of a sudden.

on a related note, its crazy there Wellington store has been closed for what seems like about a year now following what was a minor fire.

[Rawz]

SP up 5% so market happy with getting back to basics approach.

[Joshuatree]

As long as they don't buy MFB ehh:)

[nztx]

As long as they don't buy MFB ehh:)



Oh ***** LOL .. was expecting someone to trot that one out :)


but who would be getting a bargain ? ;)

[Toddy]

Educate me. Why are people buying this stock again?

[nztx]

Make a 6 Month Loss, close more doors, close or hock off more of the Ops within, pay a small dividend to please mum & dad holders (can't leave them barehanded - that would never do) - beats me why this has sent buying signals out on those sort of fundamentals & on the back of recent earlier period results .. clearly all is not well :)


Maybe the thoughts of the newly roped in baconiser bashing & banging away on new WHS fares in the kitchen might have inspired some ;)

[nztx]

Poor old Nick - crocodiles all round & didn't see any of them arrive in the surrounding pools ? ;)

must have been baby ones when they landed ..

As for NZM - WHS shares soar .. only by a vast jaw dropping 10c though ;)

might dive by the same amount by end of week after all digest the sombre report

The day must have been slow in the NZM Business newsroom or everyone was in a dream :)

[LaserEyeKiwi]

Went to check out the newly reopened Tory street central Wellington store - where management had issued PR recently proclaiming it as the latest store to be added to its grocery roll out.

Lies.

The food department was completely unchanged from before it closed a year back.

the store still looked the same as well, they did absolutely nothing to improve it (it was closed due to a small fire).

[winner69]

Went to check out the newly reopened Tory street central Wellington store - where management had issued PR recently proclaiming it as the latest store to be added to its grocery roll out.

Lies.

The food department was completely unchanged from before it closed a year back.

the store still looked the same as well, they did absolutely nothing to improve it (it was closed due to a small fire).

What, no fresh produce they were touting last week https://wellington.scoop.co.nz/?p=159525

Maybe arriving next week lol

[winner69]

Maybe we’ll hear how the disposal of TheMarket.com is going one day soon

[kiora]

Where is the Motu again?
Up by Whakatane?

[winner69]

JB Hi Fi just reported that NZ sales for Jan/Mar were up 18.3% on last year …….comparable were +2.9% with other growth from new stores

Hard to imagine Noel Leeming doing these sort of numbers

WHS apparently quarter sales tomorrow …probably going to be a bit dismal but Nick will spin a good story

[winner69]

Update even more dismal than I envisaged

Things seem to be getting worse quarter to quarter

Fancy blaming floods and Gabrielle …desperation

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/WHS/430882/418245.pdf

[winner69]

Rod must be laughing his head off seeing WHS sales report

[Balance]

Update even more dismal than I envisaged

Things seem to be getting worse quarter to quarter

Fancy blaming floods and Gabrielle …desperation

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/WHS/430882/418245.pdf

Yup - not a mention of floods and Gabrielle contributing to the 10.5% increase in WHS sales last year (taking credit).

But now, those events are to be blamed!

https://www.nzx.com/announcements/411305

[Entrep]

Wow. This company will make a great case study one day.

COPY KMART. It's not hard.

[percy]

I was at Eastgate Mall a couple of days ago.Went into a recent new shop,a discount groceries.
Store size would be under a tenth of the size of The Warehouse's Eastgate store.
Two checkouts open and busy,while Warehouse store had one check out open and two people in their self service check outs.
First thing I note when comparing retail stores is the number of check outs open and how busy they are.
WHS issues continue.

ps.The discount grocer's stock would be under $200,000 while WHS's Eastgate store would be many millions.
I would think WHS's store would be lucky to achieve one to one and a half stock turns a year,while the discount grocer would be between eight and ten stock turns a year.

[LaserEyeKiwi]

Oof.

Also not that surprising, almost all mortgage holders have rolled over to ~7% interest rates now. Throw in everyone in the public service pulling back personal spending for fear they will soon lose their jobs - massive double whammy for retailers selling big ticket items.

[winner69]

Wow. This company will make a great case study one day.

COPY KMART. It's not hard.

The Red Sheds have been a great case study since the turn of the century

[ronaldson]

Write down of carry value/investment in The Market presumably won't materialise until end of the financial year reporting, but will weigh further on the outcome then?

[LaserEyeKiwi]

Despite the drop in revenue, the likely full year net profit from operations still seems rather healthy for a $440m market cap?

Thoughts?

(Not holding, but on watch list)

[Rawz]

Despite the drop in revenue, the likely full year net profit from operations still seems rather healthy for a $440m market cap?

Thoughts?

(Not holding, but on watch list)
my thoughts are to stay away. danger, danger, red alert, beep, beep, beep, radioactive warning, woof woof

[whatsup]

Update even more dismal than I envisaged

Things seem to be getting worse quarter to quarter

Fancy blaming floods and Gabrielle …desperation

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/WHS/430882/418245.pdf

Now the fish heads at The Warehouse know how the Mums and Pops store owners felt through N Z when WHS moved into their town, DIE YOU MISERABLE BASTARD$.

[samjaynz]

Now the fish heads at The Warehouse know how the Mums and Pops store owners felt through N Z when WHS moved into their town, DIE YOU MISERABLE BASTARD$.

The circle of (business) life continues unabated, right?

The Warehouse killed off many small retailers, who couldn't keep up. Now the tired old lion of NZ retail has many hungry young challengers nipping at its heels - from the likes of Kmart with its vastly superior homebrand Anko range, to the likes of Aliexpress and Temu providing cheap plasticky garbage for even less.

The only thing I really do like about The Warehouse now is their homebrand coffee beans (apparently the reject Havana ones) which represent excellent value for money and taste good when freshly ground. But that's hardly the stuff that's going to resurrect the business.

Noel Leeming is a miserable place to shop owing to a very insipid range and typically poor deals (at least JB Hi Fi and PB Tech offer some more interesting products/choice when it comes to computers, headphones and other electrionics) and you can't so much as set foot in the stores where I live without being pounced on by multiple salespeople who I assume are desperate to make a sale to earn commission.

[Jay]

The circle of (business) life continues unabated, right?


Noel Leeming is a miserable place to shop owing to a very insipid range and typically poor deals (at least JB Hi Fi and PB Tech offer some more interesting products/choice when it comes to computers, headphones and other electrionics) and you can't so much as set foot in the stores where I live without being pounced on by multiple salespeople who I assume are desperate to make a sale to earn commission.

Either that or a lot of staff standing around talking, seemingly not interested in helping customers.
Mind you, when I go to a place like or Harvey Norman etc that I usually know what I want and are just going to buy it

[winner69]

Despite the drop in revenue, the likely full year net profit from operations still seems rather healthy for a $440m market cap?

Thoughts?

(Not holding, but on watch list)

Could do $50m npat from continuing operations …next year should be better

Só market cap $420 - does look tempting

[kiwikeith]

Could do $50m npat from continuing operations …next year should be better

Só market cap $420 - does look tempting

Problem is as unemployment rises and spending slows down the warehouse is in the firing line. The redsheds in Manawatu (feilding and palmy) are nowhere near as busy as they used to be.

[percy]

The big issue with a struggling retailer is their leases.

[nztx]

Wonder how badly Costco is eating The Warehouse's lunch ? ;)

Be fairly large bites I imagine ..

[winner69]

The big issue with a struggling retailer is their leases.

WHS rents ~$120m a year and lease liability of ~$750m

[Balance]

Wonder how badly Costco is eating The Warehouse's lunch ? ;)

Be fairly large bites I imagine ..

Costco is in a different league and in a different market segment altogether to Warehouse imo.

The competitors eating Warehouse's lunch are K-Mart, Temu, Panda Mart and soon to start in NZ, Ikea.

As for Noel Leeming, another disaster in the making.

[Bobdn]

Well, at least those people that didn't get their full allocation at the IPO have a chance to buy more shares at a similar price.

If any are still alive.

[winner69]

Costco is in a different league and in a different market segment altogether to Warehouse imo.

The competitors eating Warehouse's lunch are K-Mart, Temu, Panda Mart and soon to start in NZ, Ikea.

As for Noel Leeming, another disaster in the making.

Noel Leeming sales DOWN 9% Feb/Apr v pcp

JB Hi Fi NZ sales UP 18% Jan/Mar ….includes a few new stores

Guess whose winning in this sector?

[Valuegrowth]

Noel Leeming sales DOWN 9% Feb/Apr v pcp

JB Hi Fi NZ sales UP 18% Jan/Mar ….includes a few new stores

Guess whose winning in this sector? I bought a laptop from them. IMO time to time they also can have a lean period.

[Greekwatchdog]

CEO has gone effective immediately.

The Warehouse Group (TWG) today announced that Nick Grayston will step down from his role as Group Chief Executive Officer, effective immediately.

TWG Chair Joan Withers said "Since 2016, Nick has led TWG through a period of significant change in the retail industry and I want to thank him for his commitment and contribution. His focus on sustainability, adopting Agile ways of working, navigating the challenges of Covid and initiating the significant and successful programme of critical infrastructure upgrades have been hallmarks of transformation of The Warehouse Group in the last five years."

"However, as we look to the future, we have agreed a change in direction is necessary for the Company and that it needs fresh energy to execute."

John Journee will take up the role of Interim CEO on 20 May 2024, while the Board undertakes a search for a new CEO. The Board has determined that, upon taking up his new role, John will cease to be an independent director but will continue as an executive director of TWG.

"John spent 15 years at TWG across a range of roles, including as CEO of Noel Leeming, and has been on the TWG Board since 2013. His experience and familiarity with TWG will be invaluable as we navigate this transition and begin our search for a new permanent CEO," says Mrs Withers.

Nick Grayston said it has been a privilege to lead The Warehouse Group and work alongside such a dedicated team.

"Leading The Warehouse Group has been one of the most rewarding experiences of my career. While it is the right time for me to step aside, I have every confidence in the talented team at The Warehouse Group to drive the business forward and I wish them the very best."

Mrs Withers said the Board and Executive team were committed to supporting the 10,000-strong team at The Warehouse Group in delivering value to shareholders and customers and getting the Group's strategic and financial performance back on track.

"Our team members, customers, shareholders and all Kiwi families are our inspiration and motivation as we focus on improving the performance of the core business. This transition marks a new chapter for TWG as we address our current challenges and seize the opportunities that lie ahead."

[Perky]

Xxxx…deleted same message as above

[0verdose]

Three years too late but some welcomed news.

[samjaynz]

Some time ago I worked for "the group" in a management-level role for one of the sub-businesses. I remember when Grayston came along, saying to my boss that he wouldn't be up to much, and I remember being told to watch what I say. Might have to dig old boss' number out of my phone and send him a last laugh message.

[Grimy]

"Leading The Warehouse Group has been one of the most rewarding experiences of my career."
I'm glad someone has had some rewards....
"Our team members, customers, shareholders and all Kiwi families are our inspiration and motivation."
It didn't/doesn't really show....
I was in a Warehouse this morning. As depressing as usual. And the $5 eggs have gone up to $6.
Yesterday I was looking at a new heater. $179 at Noel Leeming. Mitre 10 (who aren't exactly known for being the cheapest) $139 for the same model, with a club special of $115. NL do a price match, but it's just not worth the effort.
Looking at some other stuff and they have priced themselves out of the market. It's as though they don't want customers-in which case, they're succeeding.
I hope the new guy/gal can get them back to where they were 10 years ago-when there was some energy and vibe (sorry, dislike that term) to the business. It just seems to have been grinding to a near standstill over the past 5 years or so.

[nztx]

This about says it:



Mrs Withers said the Board and Executive team were committed to supporting the 10,000-strong team at The Warehouse Group in delivering value to shareholders and customers and getting the Group's strategic and financial performance back on track.


but it wont be an easy fix with more large sharks having entered the pool and hard at work carving out their own existences ;)

I wonder if this was not instead a case of being pushed out ? :)


The board has some talent which has a fairly lengthy track records on their scorecards, so wouldn't be blind to the trajectory they have been seeing of recent times, especially since Foodstuffs divested their holding..


A fair few heads onboard across the WHS - all dependent on it for their survival .. would never have thought the headcount would be as high as 10,000

Wonder what the head counts at say Bunnings, Mitre 10 or Costco are like ?

[Entrep]

Should have happened long ago. Perhaps now WHS will be investable.

[x] TheMarket - closed
[x] Torperdo7 - sold
[x] CEO - gone

Although you have to wonder about the capabilities of the board letting him hang around so long... and also taking so darn long to close TheMarket!

[nztx]

Should have happened long ago. Perhaps now WHS will be investable.

[x] TheMarket - closed
[x] Torperdo7 - sold
[x] CEO - gone

Although you have to wonder about the capabilities of the board letting him hang around so long... and also taking so darn long to close TheMarket!


And what does that leave - I would say the remaining business units are under multiple pressures ;)

Going to take a h3ll of an effort to pull this one out of the ditch and come up roses pleasing everyone in current economic environment.

Is Tindall still around ?

[whatsup]

And what does that leave - I would say the remaining business units are under multiple pressures ;)

Going to take a h3ll of an effort to pull this one out of the ditch and come up roses pleasing everyone in current economic environment.

Is Tindall still around ?

I think that they are a buy sub $1-00 ( sub for safety ! ).

[percy]

I was talking to a couple of friends who are gardeners.
Garden centres at WHS are too far away from the car park to be bothered carting compose or bags of potting mix,compared with Mitre10.
However buying shrubs and small trees you really do get a bargain,as their stock is so slow selling ,you can buy a two year old tree/shrub for the same price you would pay at a garden centre for a one year old tree/shrub.

[LaserEyeKiwi]

Friday arvo sacking. Crikey!

[Panda-NZ-]

New strategy - Kmart with a garden centre ?

[winner69]

I was talking to a couple of friends who are gardeners.
Garden centres at WHS are too far away from the car park to be bothered carting compose or bags of potting mix,compared with Mitre10.
However buying shrubs and small trees you really do get a bargain,as their stock is so slow selling ,you can buy a two year old tree/shrub for the same price you would pay at a garden centre for a one year old tree/shrub.

The shrubs at our local WHS wouldn’t last 2 years let alone 1 ……things never seen to get watered regularly

[percy]

The shrubs at our local WHS wouldn’t last 2 years let alone 1 ……things never seen to get watered regularly

I believe you...lol

[nztx]

The shrubs at our local WHS wouldn’t last 2 years let alone 1 ……things never seen to get watered regularly


Cripes -- what do all those 10,000 of bods on board do all day then ? :)

[Bobdn]

Deleted. Old news!

[Traderx]

$1.09 sp ~$375m market cap. ~$3B of continuing sales. Little to no debt. Might be able to make $50m after tax in near term and pay out most of it? Is all the bad news fully priced in now or do people think is ultimately a doomed business? Seeming like it is priced by market with a moderate chance of failure?

I would love to see a new CEO appointed on a back to retailing basics agenda, could start with improving the lighting in stores get away from horrible cold/blue lights, and with cleaning up the shoddy entrances - currently generally untidy with rubbish around and air of neglect. Then focus on mechandising, stock turn and sharpening up the loyalty scheme offer.

Disc - no holding

[SCOTTY]

$1.09 sp ~$375m market cap. ~$3B of continuing sales. Little to no debt. Might be able to make $50m after tax in near term and pay out most of it? Is all the bad news fully priced in now or do people think is ultimately a doomed business? Seeming like it is priced by market with a moderate chance of failure?

I would love to see a new CEO appointed on a back to retailing basics agenda, could start with improving the lighting in stores get away from horrible cold/blue lights, and with cleaning up the shoddy entrances - currently generally untidy with rubbish around and air of neglect. Then focus on mechandising, stock turn and sharpening up the loyalty scheme offer.

Disc - no holding

Let’s hope it can be made to work.
It is usually very costly for a retailer to downsize or exit a market as usually entails:
- Fire sale for existing stock
- Staff redundancy costs
- Funding lease commitments
- Funding any other liabilities
Smith’s City (SCY) was a good example with shareholders left with nothing.

[Grimy]

$1.09 sp ~$375m market cap. ~$3B of continuing sales. Little to no debt. Might be able to make $50m after tax in near term and pay out most of it? Is all the bad news fully priced in now or do people think is ultimately a doomed business? Seeming like it is priced by market with a moderate chance of failure?

I would love to see a new CEO appointed on a back to retailing basics agenda, could start with improving the lighting in stores get away from horrible cold/blue lights, and with cleaning up the shoddy entrances - currently generally untidy with rubbish around and air of neglect. Then focus on mechandising, stock turn and sharpening up the loyalty scheme offer.

Disc - no holding

Couldn't agree more about the lighting and entrances. Just isn't inviting and then under those lights it seems like you're in a cave and the light is receding fast......Not an environment that you want to be in.
It's as though they (a) Don't want customers coming in the door, and (b) They certainly don't want them to stay long.
A few simple changes could make a huge difference to the feel (and therefore foot traffic) of the stores.

[peat]

theres 17 cps of potentially continuing operations earnings less the declining market we're in of course.
but at 1.10 thats a low PE.

[Balance]

WHS’s biggest issue is the hundreds of millions of dollars of leases it has committed to rent, many from the sale and leaseback of properties owned and developed by WHS. The proceeds from the property sales had been used to bolster profits and pay dividends in the short term while committing the group to longer term rental costs.

Meanwhile, underlying earnings are going downwards year by year.

Not a pretty picture and sad to see just how lost the group is now from a strategic point of view.

Cannot see any compelling reason to invest in the stock.

[percy]

Let’s hope it can be made to work.
It is usually very costly for a retailer to downsize or exit a market as usually entails:
- Fire sale for existing stock
- Staff redundancy costs
- Funding lease commitments
- Funding any other liabilities
Smith’s City (SCY) was a good example with shareholders left with nothing.

Spot On SCOTTY.

[nztx]

Let’s hope it can be made to work.
It is usually very costly for a retailer to downsize or exit a market as usually entails:
- Fire sale for existing stock
- Staff redundancy costs
- Funding lease commitments
- Funding any other liabilities
Smith’s City (SCY) was a good example with shareholders left with nothing.


Not wrong there .. many won't forget the SCY receivership and excuses from the Fish heads to offload what remained to get their butts out of the firing line, before the corporate undertakers came prancing in the door to find very little left remaining ..

[peat]

19.9% held by the James Pascoe inv Ltd now.
Is this not the signal for a possible takeover?

[winner69]

19.9% held by the James Pascoe inv Ltd now.
Is this not the signal for a possible takeover?

That James Pascoe Investments Ltd was only incorporated a few weeks ago

Maybe just restructuring their investments ….or as you say positioning for a takeover

But Tindall Foundation will decide what happens

[winner69]

Normans must be more than $100m under water with WHS ‘investment’

[Balance]

Normans must be more than $100m under water with WHS ‘investment’

They had imaginings of merging their retail operations with the Warehouse when they took 20% of WHS.

Events in the retail sector has rendered that scenario and option redundant imo.

[whatsup]

19.9% held by the James Pascoe inv Ltd now.
Is this not the signal for a possible takeover?

Old news really old news !

[Sideshow Bob]

Old news really old news !

Yeah but the share price is up 3c today though!! :p

[peat]

Old news really old news !

ok further review of the SPH confirms its just a transfer from one entity to another so yeh old news, apologies.

[nztx]

They had imaginings of merging their retail operations with the Warehouse when they took 20% of WHS.

Events in the retail sector has rendered that scenario and option redundant imo.


still might be useful for backing say the Whitcoulls, Farmers & other bits into.

As good operators as Pascoes are with a long track record, they could probably with higher holding in WHS instill a degree of better discipline WHS appears to be begging for.. or who knows if a bargain basement price to mop up the majority of WHS came along, the lot could do well merged privatised away from prying eyes doing post mortems on the listed animals & fading shadows still alive & kicking on NZX ;)

A lousy buck & 7 pennies or even less must be headed toward half attractive & respectable territory for future games around picking up what remains of the bucket of bargain nuts & bolts ;)

[Balance]

Stephen Tindall will never sell his stake as long as he is around.

[moimoi]

Probably going to zero isn't it...?

Surely just a question of whether its a 3, 5, or 10 year time frame before it does.

AI will soon tell you what to buy, and why, with a link to a (preferred)_ source_ online supplier, your personal AI bot will place the order, pay for it, and track the delivery process to your bunker / door.

No needs for a store.

GLTA.