The king buys postie plus

[Nuts]

attended agm for postie this week , seemed very positive , they are serious regarding acquisitions .
this year might bring some growth to share price ?

[percy]

Be very careful.Ron Boswell talks the talk but does not deliver.The talk about their great back office is only talk.
Any talk of acquisitions when they have trouble running what they have already is foolish,and will only mean more loses of shareholders funds.In a rewards program I received Postie Plus vouchers.After failing to find anything I wanted I gave them to my daughter.Was told they were invalid.It took me 3 or 4 visits to head office before the vouchers we received were valid.If they can't do the small things right they will never get the big things right.They have a record of failing to deliver.!!!

[Nuts]

sorry but you seem to be pretty negative Percy . with all your assessing of the stores etc you seem to quite against this company ?
they arent the only company thats been struggling in the past few years , but they are making progrees from what i can see.

[percy]

sorry but you seem to be pretty negative Percy . with all your assessing of the stores etc you seem to quite against this company ?
they arent the only company thats been struggling in the past few years , but they are making progrees from what i can see.

Yes you are right,I have been pretty negative.Most retailers have been struggling.I think they have more work to do to make what they have already profitable, before than take on any acquisitions.Yes new stores look better,and I think you are right when you say they are making progress.I went into Sydenham store about a month ago,didn't look too bad,and was in Hokitika store last Monday.Hokitika was usual overstocked mess.Neither store had a man's jersey in stock.Out of season.Well as you know we often get all four seasons in one day in ChCh,so I think they should have mens jerseys in stock all year.

[craic]

This thread, The King buys postie plus was started in 2005 by an unidentified guest and after thirty pages or more had it's last post in September of this year, Felix? The new thread seems to be trying to breath life into a dead dog and I see Nuts joined in 2005. My wife, who doesn't waste money on fashion, notes that locally the shop seems pretty empty when she has been there. Their annual report would not inspire anyone out to make their fortune.

[macduffy]

Those with better memories than mine may know how much importance Postie Plus placed in their mail order business in the days before the internet?

Did they have a network of stores in the early years or has this been a relatively recent development? I have this nagging feeling that the growth of internet commerce has largely negated PPG's original competitive advantage although I must admit that their website appears to be attractive and user-friendly - to my inexpert eye.

I wonder also what proportion of their sales now originates from mail order/internet, but of course retailers don't disclose such sensitive information.

[macduffy]

Yes, the original thread was started by a guest who styled him/herself "The King".

Perhaps "admin" could fold the new into the old so that continuity is preserved?

[Nuts]

one person says a shop is overstocked and another says a local shop is pretty empty ? percy would think it would b e pretty difficult for them to stock certain winter lines all year yound especially when you have shops like hokitika ov erstocked .
they said at the agm that they are still working thru the refurbishment , the photos of som e shops looked fabulous , next years ladies fashions are looking great says my wife (they showed pics of them at agm ) .
the chairman stated they needed to doulbe the size by organic growth and acquisitions . i believe jan cameron is backing them as well.
i feel they will get there.
the chairman spoke and is very switched on .

[percy]

Those with better memories than mine may know how much importance Postie Plus placed in their mail order business in the days before the internet?

Did they have a network of stores in the early years or has this been a relatively recent development? I have this nagging feeling that the growth of internet commerce has largely negated PPG's original competitive advantage although I must admit that their website appears to be attractive and user-friendly - to my unexpert eye.

I wonder also what proportion of their sales now originates from mail order/internet, but of course retailers don't disclose such sensitive information.

Yes it was started as a mail order business.Never really progressed to the internet.They were late internet starters.
I have just visited their site,looking for a jersey.They have one.One,yes one,but it is size small.Not my size.Hopeless. Joke.Nuts go visit the stores yourself.Try buying something you want,like a jersey,then come back and share your experience with us.
There have been many attempts at new Postie plus threads,phaedrus used to put a stop to them.

[Felix]

Having been a shareholder in the company for a few years I have a few observations:

* The initial company floated in 2003 was a mess and included four distinct small brands with little to no nexus (including Rendells and Arbuckles).

* If Postie had not sold Arbuckles in 2008, got their inventory issues in order (though this is perhaps disputed by some posters, it appears in far better order than it was a few years ago) and started identifying savings such as distribution savings, it is unlikely that Postie would exist today. Postie is barely treading water as it is right now with their tiny profits so it's fair to say they probably wouldn't have lasted if they had recorded significant losses over the last few years.

* It's clear that the company won't make reasonable profits unless they can get further economies of scale that would come with being a bigger business. They have correctly identified that their best chance of doing this is through an acquisition. The key is to get it right and hopefully now they have their house in much better order they are in a good position to undertake this.

Postie isn't doing well right now, just well enough to stay afloat. The reintroduction of a dividend is positive, as are the refurbished stores. I've also been impressed by their attitude about closing stores that aren't performing well. They had a kids clothing store in Queensgate Lower Hutt for a few months and it recently closed due to lack of turnover. The old Postie would have perhaps kept the store open for years and let it drag on the company's result.

[percy]

Paul Young was brought in to save Postie,decided to add size and float it on the market.he left and Ron Boswell came onboard, then as you point out they again came close to receivership because of arbuckles,over stocks,poor sales etc.The Baby City part of the business is very good and well run.
They have 81 ,yes eighty one Postie plus stores through out NZ. 81 well run stores should be able to generate good profits.Also they have 20 Baby City stores.
When they can run what they already have,there will be no need for additional stores.
just visited www.ballantynes.com and note they have a good selection of mens knitwear.it ia also worth mention ballantynes have 3,Three stores,one in ChCh,one at ChCh airport,and another at Timaru.Also their website is very good.

[Jay]

Didn't Ballantynes just re-open with a brand new store reently in ChCh - must have confidence to spend the money - though insureance woiuld have covered some/all ??

[macduffy]

Come on, percy, one can hardly compare Postie Plus with Ballantynes! The latter is almost one of a kind - well, one of three, to be placed in the same retail segment as Kirks in Wgtn and Smith and Caughey in Auckland. PPG's competition is a mix of Hallensteins, K Mart, The Warehouse and a multitude of women's and children's wear retailers, plus of course their Baby City stores.

For what it's worth, I don't see that PPG have any competitive edge. They operate in crowded retail segments where profits are hard won these days. Adding new brands/labels is hardly going to make much difference to their meagre profitability.

[percy]

Come on, percy, one can hardly compare Postie Plus with Ballantynes! The latter is almost one of a kind - well, one of three, to be placed in the same retail segment as Kirks in Wgtn and Smith and Caughey in Auckland. PPG's competition is a mix of Hallensteins, K Mart, The Warehouse and a multitude of women's and children's wear retailers, plus of course their Baby City stores.

For what it's worth, I don't see that PPG have any competitive edge. They operate in crowded retail segments where profits are hard won these days. Adding new brands/labels is hardly going to make much difference to their meagre profitability.

Yes a bit of a stretch.Ballantynes make it work with one main store,one small store at the airport,and a modest store at Timaru,yet postie with 100 stores can't make it work.More stores not the answer to their problems.Ballantynes web much better than Postie Plus's.
My point is Ballantynes make it work,while postie can't.Postie web had one small size jersey,while Ballantynes had a range,including different colours and all sizes.
JAY,Ballantynes are trading from their original store that suffered little damage.The shops around them have gone,and the container stores are next to them in Cashel street.Colombo street outside Ballantynes remains closed.

[Jay]

Thanks for the clarification percy

I think some companies think that they can expand to thur hearts content and things wiil be rosy, when they need to get the basics right in the first place which PPG has not IMHO

[Nuts]

Percy . had a look at ballantynes and ppg web sights today , agree ballantynes have a range of jerseys but they are real quality and at high prices , ppg cater to the masses as other chains do . spoke to ceo after meeting and said they felt farmers was their main competitor, i asked about the watch stands appearing in stores and he said the have sold over 1000 in december since launch .
he also said some of the smaller stores ie hokitika , bishopdale etc retuned great return against there overheads.
At the meeting they stated they were closing some small baby city stores and had plans for much larger stores in the main centres.
Doing similar with postie . whatever acquisition they might make i hope it works out better than Arbuckles did . john arbuckle has now got a chain of importers clearance stores called PAYLESS the stock liquidators , dont know how well they do as they are not listed.
i feel one learns a lot be attending the agms of companies and asking queries of board members after meeting .
mind you they are not going to tell of any bad news i guess .

[percy]

Had a look at farmers web site.just as bad as Postie's.Ballantynes different from chalk as to cheese,however they know how to organise a website.If you are going to have a web site why not a good one.? Postie catering to masses should have the best site with more than 1 size S jersey.
agree with your comments on smaller stores and makes sense to put baby city in large format main centres.agree doing the same with Postie.
John Arbuckle retired after selling Arbuckles to Postie.He went and developed sections at Moeraki.He did that for 5 minutes before he got bored,and brought Payless.He is a trader,and a very good one at that.He loves buying and selling.He knows how to move stock.You will often find him serving in one of his shops.
Yes agree with you that you learn a lot from attending AGMs.
selling watches and Ron Boswell being pleased they have sold 1000 since launch confirms to me they have lost direction.Whitcoulls were "more than a bookstore",nearly broke them,.Anytime a retailer moves away from their core business they risk damaging the core business.
This is happening now with postie.
My brother is a valuer in Hobart.He took me to a small Mall at Glenorchy which he had to value.This was a few years ago.I told him to be very careful as every retailer was trying to sell the next door's shop's products,ie the chemist had lots of toys,the bookshop had some giftware,the gift shop had haberdashery etc.I told my brother the whole mall would suffer.The chemist should try to be a chemist,the bookshop a book shop etc.We then went to another mall where each retailer concentrated on their area of business.Offcourse the Mall at Glenorchy failed while the other one grew.
You can see postie making the same mistakes.
All of my posts on Postie have pointed out that they should try improving what they have already.They have a long way to go to get their own house in order.

[SCOTTY]

Had a look at farmers web site.just as bad as Postie's.Ballantynes different from chalk as to cheese,however they know how to organise a website.If you are going to have a web site why not a good one.? Postie catering to masses should have the best site with more than 1 size S jersey.
agree with your comments on smaller stores and makes sense to put baby city in large format main centres.agree doing the same with Postie.
John Arbuckle retired after selling Arbuckles to Postie.He went and developed sections at Moeraki.He did that for 5 minutes before he got bored,and brought Payless.He is a trader,and a very good one at that.He loves buying and selling.He knows how to move stock.You will often find him serving in one of his shops.
Yes agree with you that you learn a lot from attending AGMs.
selling watches and Ron Boswell being pleased they have sold 1000 since launch confirms to me they have lost direction.Whitcoulls were "more than a bookstore",nearly broke them,.Anytime a retailer moves away from their core business they risk damaging the core business.
This is happening now with postie.

To be a successful on-line retailer, the quality of the site provider seems to be the secret to success. From what I can see, the top Sites/Brands seem to be powered by the ecommerce solution provider, EstarOnline Limited [www.estaronline.com] - Just to name a few EstarOnline clients; Ballantynes, Briscoes, Country Road, EziBuy(NZ and Aus), H & J Smith, JB HiFi, Kathmandu, Kimberleys, N.Z.ShopOnline.com, Real Groovy, Rebel Sport, Rod & Gun and Swanndri. All of these sites are first class and easy to use.

Disc. Shareholder in EstarOnline Ltd

[POSSUM THE CAT]

Scotty until they work out a standardized sizing system online retailing of clothing will not work Depending onthe brand & style. In a men's shirt I take anything between A M to a XXL and POSTIE is one of the wors. As for shoes & pants I can try on as many as 100 pairs of supposedly the correct size & still will not find a pair that fit. So how will online retailing work.

[POSSUM THE CAT]

Percy Thank you for the Private Message re this thread. But as I have been into EziBuy shops & find them even worse than on most for variances in sizes. The cost of returns etc would be astronomical. Let alone the very poor quality merchandise I have seen.

[SCOTTY]

The thing is Possum - it does work

Cheers

[percy]

NZ on line sales are approx 4.5 billion dollars.Of which 20% or $900 million is clothing.
A retailer such as postie should expect sales on line to be approx 5 to 10% of total sales.
it is expected that on line sales will increase at greater level than retail shop sales.

[PJK]

A I work online I like to buy online too - but have had to many issues with local clothing retailers to be able to purchase without trying on first.

Want to see a REAL clothing mail order website? Try http://www.ctshirts.co.uk

All measurements specified, collar, sleeves, waist, leg length etc, no guessing required.
These guys have captured about 80% of my clothing purchases these days - and priced WAY below NZ retail equivalents.

Apologies that my first post contains a link - but it's not spam - honest !
:p

[percy]

PJK,
Nice to have you onboard.Nice shirts,good site.
With approx $900 mil [and growing] worth of clothing online sales in NZ confirms that NZ online retailers need to pay more attention to their sites,or miss out to savy buyers who will like you buy overseas.

[Nuts]

it appears most retail websites are in their infancy , if web sails prove positiv e we will see a real growth in that area.

[percy]

Let us not forget that postie with 100 stores did a turnover of $115mil year ended 31/3/2011 .
Sales of clothing on line in NZ was approx $900 mil.for the year.
For Postie to achieve $900 mil of sales they would require approx 782 shops on sales they are at present achieving from each store.
Conculsion.New Zealanders are buying clothing on line in big numbers.
Now for a bit of fun.
Postie's share price has been firming.What is the reason.? Is it from shareholders getting excited at the idea of aquisitions,or do you [we] think Michael Hill may be building a position because 1000 watch sales made him see postie as a great outlet for his jewellery.?

[Jay]

Now for a bit of fun.
Postie's share price has been firming.What is the reason.? Is it from shareholders getting excited at the idea of aquisitions,or do you [we] think Michael Hill may be building a position because 1000 watch sales made him see postie as a great outlet for his jewellery.?

I think the former, Micheal Hill, Gucci, Louis Vuitton ,Postie Plus - guess the odd one out ;)

[percy]

Article in this morning's www.theage.com.au headed "Online Christmas shopping rockets in US" points out retail store sales were up 3.3% while sales via internet were up 15%.Easy to see where the growth is.

[Nuts]

Percy dont forget internet sales are coming off a low base . there is a lot of growth there tho , i wonder knowing how people like to look and feel the items they buy and have a coffee and snack at the foodcourts just how high internet sales will grow tho .

[percy]

Percy dont forget internet sales are coming off a low base . there is a lot of growth there tho , i wonder knowing how people like to look and feel the items they buy and have a coffee and snack at the foodcourts just how high internet sales will grow tho .

4.5 BILLION of on line sales in NZ,of which 900 million is clothing is not a low base. In fact I would call it a huge base.This is not something that will happen,IT IS HAPPENING NOW.
As I pointed out in an earlier post it would take 782 Postie Plus stores to do the same amount of clothing turnover that is done on line.not an extra 50,but an extra 681 stores.Whether you and I like a coffee and a snack does not stop people buying $900 mil of clothing on line in NZ a year.

[Nuts]

Percy , if thats the figures (i wouldnt know ) then i tend to agree with you , why retailers bother with shops ? wouldnt it be cheaper to build a great online store eh . the worlds achainging ....

[percy]

Percy , if thats the figures (i wouldnt know ) then i tend to agree with you , why retailers bother with shops ? wouldnt it be cheaper to build a great online store eh . the worlds achainging ....

What do you mean ? you agree with me.!!!! You must be Nuts.!!! Well I suppose you are.?!

[percy]

Some very interesting articles and posts on JB Hi Fi thread in ASX forum about online sales and affects on retailers.

[Nuts]

An interesting article re Ron Boskel and PPG in chch press today , Boskel has had quite a retail career and especially in the footwear trade in Aussie , why they printed this at this point i wouldnt guess but its interesting reading.

[percy]

Called into Tower Junction store today and saw the famous "Ron's" watches on the "Boskell "stand.Pride of place.I kid you not.!!
Very nice stand and watches looked OK.After walking past the woman's bras and toiletry stands I found the men's clothing.
It is very easy to see why they are looking at other products,because the men's clothing had that unsaleable look about it.!!!
Now something for me to get excited about;according to PPG website my Pilgrim V neck Metro jersey is on special at $25,but only avaliable in store.!!! Tomorrow's fun will be to see what store has it.!!!,because I didn't see it at Tower Junction store.Down town Sydenham here I come.!!!!!!

[janner]

For God's sake .. Will some one give Percy a jersey.... He is wearing out his shoes and the retailers carpets looking ..

Sorry Perc :-))

[percy]

For God's sake .. Will some one give Percy a jersey.... He is wearing out his shoes and the retailers carpets looking ..

Sorry Perc :-))

Yes, I don't know who will be happier, me, or other posters when I finally acquire my "famous" jersey.
I must admit I thought either Nuts or Ron Boskill would have sent me one "no charge" just to shut me up.!!! lol.

[percy]

Now something for me to get excited about;according to PPG website my Pilgrim V neck Metro jersey is on special at $25,but only avaliable in store.!!! Tomorrow's fun will be to see what store has it.!!!,because I didn't see it at Tower Junction store.Down town Sydenham here I come.!!!!!![/QUOTE]

You guessed it.!!!!! lol.
No jerseys at Sydenham.When I pointed out to Melissa that PPG web site said they were "in store" she checked on their web site,saw they were there,took the catologue number, then was kind enough to use her computer to find which stores had them in stock.Northwood and Bush Inn centre.Would I like it "held" for me.I thanked her and said I was not sure which store I would be close to next week.
Again the store people are excellent.Must have sold out of Ron's watches as I can't remember seeing them,although my mind was on wooly pullies.At least sydenham store looked like a clothing retailer,rather than Tower Junctions $2 shop look.
For fun posters,go into a Postie store and look at men's trousers,note the waist sizes go,30,32,34,97,102 etc.I think they need Melissa in head office or Ron needs to spend a lot more time on the shop floor.!!

[Lizard]

Gee Percy, I wish I'd discovered the PPG thread a bit sooner... laughed till I cried!

You'd probably do better at the (iconic!) Waitangirua Save Mart! (http://ondressingup.blogspot.com/2008/11/going-berserk-at-savemart.html) :0

[Lizard]

PS - I also like Nuts titular tribute to "the king" aka "BRICKS" who loved his CAPITAL LETTERS but perhaps has passed on, given that he did not post at all in 2011. (BRICKS may have sometimes been called "nuts" (although Nuts doesn't resemble him in the slightest :)), but he will always be an ST Character!).

[winner69]

Gee Percy, I wish I'd discovered the PPG thread a bit sooner... laughed till I cried!

You'd probably do better at the (iconic!) Waitangirua Save Mart! (http://ondressingup.blogspot.com/2008/11/going-berserk-at-savemart.html) :0

Op shops are the place these days aren't they Liz .... get all the designer labels worn once (or twice) for ridiculous price ..... maybe we need to educate Percy in such things

Went into Plimmerton last month ..... to try that Topor restaurant out ..... and there's a Sallies shop even in Plimmerton .... and that is pretty hoity toity area these days .... and the woman with us said the locals love it

[janner]

The times they are a- changing... Wwinner..

[Lizard]

Op shops are the place these days aren't they Liz .... get all the designer labels worn once (or twice) for ridiculous price ..... maybe we need to educate Percy in such things

Went into Plimmerton last month ..... to try that Topor restaurant out ..... and there's a Sallies shop even in Plimmerton .... and that is pretty hoity toity area these days .... and the woman with us said the locals love it

Topor - good stuff. Only time I squeezed in there was due to NZ playing in RWC on a Saturday night... first time in forever that they weren't booked out weeks in advance. We could do with a bit more competition in the "Porirua Edible Food" category!

Pete's Emporium the other local Icon in our shopping route... formula needs a tweak or two, but seems to be doing a roaring trade. Reckon they should get in quick and nab some more territory off WHS. But retail is a fickle game... Kirks (http://www.stuff.co.nz/dominion-post/capital-life/6117098/Kirkcaldie-and-Stains-quiet-revolution) still toughs it out, but DIC means something a bit different these days!

[percy]

Gee Percy, I wish I'd discovered the PPG thread a bit sooner... laughed till I cried!

You'd probably do better at the (iconic!) Waitangirua Save Mart! (http://ondressingup.blogspot.com/2008/11/going-berserk-at-savemart.html) :0

To hell with the jersey,the little black number is just so me.!!!!!!!! lol.
I miss BRICKS,last post I remember he said he had to have a major operation.However I think he entered last year's sharetrader competition after that, and was the only person who did not have a losing share.
winner69,I thought you are going to get all your new gear at KMD's 70% off sale.!!!!Last time I was in Auckland I did try the Salvation Army store at Browns Bay,but only ended up with a couple of books.!!!
The most fun I had was at a PPG AGM when the director's wanted a pay rise.Told them their record proved they did not deserve it,and compared with other companies their size, that were more complicated than PPG, they were already overpaid.!!! Good fun, as I named 5 companies and what their directors were paid.

[janner]

Blanket man has a few articles lookingfor a good home Perc.. :-)0

[percy]

Blanket man has a few articles lookingfor a good home Perc.. :-)0

Yeah Right.!!!! Nice that Garth morgan paid for his funneral.
I worked for a short time at Bass Charrington Brewery on the Mile End road in London's East End.Found it very hard passing the street people who slept in doorways.At morninging tea time they brought around bottles of beer,so you could have a beer.!!! At lunchtime the old hands went to the pub over the road to have a couple of shorts.!!! Standard of work in the afternoon was not high.!!!! And to think I had a job at a pub in East Ham at night.!!!!!!

[karen1]

So I guess with all that beer you kept the cold out, didn't need a jumper then? There's your answer!

(Liz, I think we should get together and knit him one)

[janner]

Please.. Please.. Start knitting.. :-))

[percy]

[QUOTE=karen1;365929]So I guess with all that beer you kept the cold out, didn't need a jumper then? There's your answer!

I was off the beer at the time,and got funny looks when I asked for a cup of tea. The beer was delivered to our office,[stubbies] and if I had wanted a beer at lunch you could go to the lovely sounding "THE TAP ROOM".Never did go even for a look.

The jersey.Thanks for thinking of knitting me one,however I am thinking of trying Bush Inn store today.Should that fail I can get to Northwood on Tuesday,although I may even try Ashburton on Monday. Have not visited Asburton store.Not sure whether I am up to the excitement of visiting an "unkown Postie"store.lol.

[percy]

Bush Inn store visit today.
Found the jerseys,all $49.99 and $59.99.
I asked Kirsten if they had in stock the one on their web site at $25.? After checking their web site, she realised they were the ones on display at $49.99.
Was just about to buy it when I realised it was acrylic.I told Kirsten I was after a woollen one, to replace the one I had lost.She asked if it was a thicker one? Yes I said.She knew the one I was after and thought they should be in again before winter.

[POSSUM THE CAT]

Bricks Deceased some years ago possibly an announcement on the SCY thread which was another one he dreamed about.

[percy]

Bricks Deceased some years ago possibly an announcement on the SCY thread which was another one he dreamed about.

Thanks POSSUM THE CAT sorry to learn that.

[troyvdh]

...I honestly have no idea what/who this postie company does...does it sell stamps...clothes...cheers...

[janner]

Don't know how many stamps they sell..
They are not selling many jersey's ..
Isn't that right Percy ..

[percy]

...I honestly have no idea what/who this postie company does...does it sell stamps...clothes...cheers...

Yes well,very good question,stamps? not yet.! [well I don't think so.]

[percy]

Don't know how many stamps they sell..
They are not selling many jersey's ..
Isn't that right Percy ..

Turned cold today.Snow at Porters Pass,bad weather at Arthurs Pass,cold and raining in Christchurch.No warm clothing in the "people's" budget clothing store. NO SURPRISES THERE !!!!! janner very difficult to sell what you have not got in stock.Any one who has lived in the South Island knows you always get a spell of bad weather either at Xmas or in January.People on holiday,money to spend etc and Postie can't come up with the goods.
Hailing at present.!!!!
There is a saying in business;if you give people what they want,you will get what you want.
Postie Plus could start by giving people what they want.!!! I would expect it is good clothing at a fair price. Simple.Most good businesses keep it simple and succeed.

[winner69]

Prob all the effort going into back to school stuff .... but then when I went to school my Mum only had to buy a uniform (jersey had to last 5 years back then) and a pair of shoes and maybe a school bag .... these days its an iPad and iphone and a skate board or a scooter (for the younger ones) by the looks of the shops .... and don't forget the car for the bigger kids

[percy]

Prob all the effort going into back to school stuff .... but then when I went to school my Mum only had to buy a uniform (jersey had to last 5 years back then) and a pair of shoes and maybe a school bag .... these days its an iPad and iphone and a skate board or a scooter (for the younger ones) by the looks of the shops .... and don't forget the car for the bigger kids

Effort.?? Sure you don't mean F... it. !!!!
I think Postie do very well with their school clothing range.Skate boards and scooters are however great for shoe retailers.Postie shoes next.? Would posters with school age children please tell me "How many CELL PHONES has your little darling lost?"

[janner]

Percy says..

" And to think I had a job at a pub in East Ham at night.!!!!!! "

Whilst Winner is reliving his schooldays..

East Ham is for Pussy Cats Perc... Catford/ Deptford is my back ground.. My old man would drop you for looking at him.. And that was only my mother.. Have photo's of her that would put the Gestapo to shame..

But Winner is correct.. We live in a different world today.. and not all is for the better..

And getting worse with income gaps widening all around the world..

[percy]

Percy says..

" And to think I had a job at a pub in East Ham at night.!!!!!! "

Whilst Winner is reliving his schooldays..

East Ham is for Pussy Cats Perc... Catford/ Deptford is my back ground.. My old man would drop you for looking at him.. And that was only my mother.. Have photo's of her that would put the Gestapo to shame..

But Winner is correct.. We live in a different world today.. and not all is for the better..

And getting worse with income gaps widening all around the world..

Don't tell anyone but I did work night shift at car heater factory at Barking.You know what I mean,like.?!!!! Great bunch of guys.Catford/Deptford,you must have issues.!
However, when you visit a primary school today it is very rewarding to see so many bright,smiling,happy young people.Seeing their faces makes me feel the future is secure.

[janner]

Not wishing to turn this into a Gossip Column..

Issues ??..

Maybe.... Don't cross me :-))

" However, when you visit a primary school today it is very rewarding to see so many bright,smiling,happy young people.Seeing their faces makes me feel the future is secure. "..

Perc.. I have not visited a Primary school for at least.. 35 years.. They had Fete's to raise money.. Today it is less personal.. They have FEES..

Remember the old " Bottle Drives ".. ?? School one week Scouts the next.. etc..etc..

Have you ever visited a Primary school in South Auckland ?? .. Neither have I..

They are full of .. " so many bright,smiling,happy young people. "... As they are in the schools you visit..

LOOKING FOR SOMETHING BETTER THAN WHAT THEY HAVE..

Take away half of the WELFARE budget and put it into EDUCATION..
Giving parents the choice of schools.. with FREE transport..

Bingo... Less useless uninterested " YOBOS ".. coming out of the other end..


Your night shift job !!..

They must have been mad to take you on. BARKING MAD .. :-)0

[percy]

BARKING MAD,yeah right,about it.!!!!

[winner69]

I wonder how many millions are sold through the p shops .... maybe recycled clothing a bigger threat to PPG and others than they think. Here's a story about a well heeled lady
http://www.stuff.co.nz/dominion-post/capital-life/6204178/Wellington-GPs-New-Years-revolution

But then again PPG is really a charity anyway .... providing reasonably good affordable clothing, seeing kids go to school in something tidy, keep a 100 or so landlords happy by occupying a lot of retail space, provide jobs for countless hundreds ..... how charitable can you get - too big to fail in this respect

Amazing they sell over $100m of stuff every year and almost every cent goes to suppliers landlords and staff .... hardly anything to the tax man and shareholders.

I don't mind them not paying much tax cause they are doing sterling social service sort of work .... and shareholders just need to realise they are underwriting a charity

(Now I can see why the market cap is only $12m ... just qualifies for Tigers NZX comp)

[percy]

Great article,may pay PPG to get someone from Red Cross to run the business as Red Cross appear to know how to make a profit on clothing sales.
From what Nuts reported looks as though PPG want to extend their charity work.!!!!!
Should PPG tap shareholders for more funds,will shareholders be able to claim funds "given" as a charity donation for a tax deduction.?

[Lizard]

Effort.?? Sure you don't mean F... it. !!!!
I think Postie do very well with their school clothing range.Skate boards and scooters are however great for shoe retailers.Postie shoes next.? Would posters with school age children please tell me "How many CELL PHONES has your little darling lost?"

No cell phones lost - though a couple of close calls, one of which required a tearful search party. But then my kids have been given a cellphone, an allowance and a budget just before they turn 13 - and after that, they have to buy their own...

As for Postie Uniforms, our local college recently upgraded theirs and Postie got put up against Moana (mail order). I would have loved Postie to come through, as it is near impossible to guess the right sizes off Moana and always requires a hasty exchange when the uniform arrives in late January (after ordering and paying in October). However, when both suppliers were put on the spot to present concept samples, Postie let themselves down in the presentation and Moana walked away with the contract again.

[percy]

Thanks for your reply on the cell phones Lizard.
Sorry to learn Postie let themselves down in your college contract.No surprises there.!!!!!
I must confess I wonder what this company could achieve with someone like Tim Glasson [HGL] running it.

[percy]

Ashburton Postie visit today.
Very nice looking store with Baby City right next door.
The store looked like a clothing retailer,and the flow was very good.
Stock looked good.
No Jerseys.
NOW THE FUN.Could not find the "Boskell" stand with "Ron's" watches.Wait for it.!!!! It was hidden behind the "Punter"[after the chairman]
stationery stand full of great value $2.99 staplers and packets of pencils.Initiative ? No ! Would have been better to make sure Postie secured Lizard's college contract for school clothing.!!!

[winner69]

Percy - they say their stores are viable

I note they have 103 stores and the AGM preso says stores cost is $33m - ie about $320,000 a store on average

Means a lot of jerseys and things need to be sold just to cover this cost .... it jsut seems that maybe the stores are costing too much to run for what they actually sell .... a lack of critical mass in other words

There Gross Margin is over 52% which is up there with Pumpkin Patch and Hallensteins .... so without going into too much research it looks like the cost of doing business is far too high

You on the spot Johhny - you reckon maybe stores too big (or rental expensive) for what they actually sell

[percy]

sorry winner69,I spent half an hour detailing Postie's problems and post got lost!!!!
No stores are not too big. Store staff are excellent. Main problems are poor stock selection,store layouts,displays,all the basics.gross margin on mens sweat shirt $20 [not in stock] would be a lot more than on a $2.99 stapler [in stock].
Say rent was 15% of turnover and staffing was 15% and av store turnover was $1mil that would be getting near the $320,000 per store.I would think Tim Glasson would soon have store turnover up 20% to 50%,then the numbers would be fun .Possibly make the $12mil market cap in one year.PE would not stay on one for long.!!!

[percy]

Store Visit.Aucland Shopping Centre,Tuesday 7th Feb.
Dull,boring,flat and poorly set out.
FUN TIME AGAIN.
Go to Postie on line sales site.go to Men's sale.Note "IN STORE ONLY"!On line sales site.!!!
Hello,hello ,is there anybody out there.? On line sales are not "in store only".They are ofcourse "on line."

[percy]

Store visit.Barrington Mall extensions. Christchurh. 25/2/12.
Very nice looking store.
Stock presentation very good.
Range of stock on display very good.
Store flow good.
Store location very good.
Looked like a clothing retailer.
Overall impression.Store should do well.

[Nuts]

Some nice shops Percy but not helping the shareprice much tho eh.

[percy]

Some nice shops Percy but not helping the shareprice much tho eh.

No I think most investors are staying away from retailers.I only have one retail stock MLC [Mothercare] in Australia.Makes Postie look like a star performer.!!!!
Well I suppose that is not quiet right as EBO now own Masterpet who own half of Animates.

[Nuts]

visited the Barrington ppg store today myself percy , was quite busy as was the whole mall , the place should do a lot better once totally finished including PPH.
Would like to think we would get a div soon but somehow knowing their past summer results i cant quite see it .

[percy]

With $8.585 mil of bank debt [in last annual report] and a net profit of $656,000 ,I don't think the bank would quite see it either.

[Ekrub]

Postie + paid a 1 cent dividend on December 14th, so if they were to pay another, it would most probably be at the usual six-monthly interval, and therefore not until June 2012.

Ex Dividend Period Amount Supp. Imputation Payable Currency
5 Dec 2011 Final 1.000c 0.000c 0.429c 14 Dec 2011 NZD

[percy]

Had lunch in Heartland cafe,next door to Postie store in Timaru today.Ran into an old guy I know sitting outside the store."The miss's is in there shopping."! She then joined us.Four items for less than $40.A good clearance sale.Had a quick look in the store and they were busy.
I noted there was no one in the Halinsteins store on the corner.Did not have time to buy anything myself.

[winner69]

Latest sales release .... sounds like percy should have bought more of those jerseys / jumpers he was after

[janner]

Yes ... What happened with your " Woolly pully " Perc ?.. It is now Autumn.. :-)

[percy]

It is with regret that I have to inform winner69 and janner that owing to the fact that they still do not have my jersey in stock I am woolie pullie less.!!!!!!
And going by the sales decrease so are others.If you don't have something in stock you can't sell it.
As for the punch line in the announcement that they are "actively looking at acquisitions for 2012 year," I can only recomend they forget it,and make what they have already work.
the jersey just goes to show they are not on top of their game.Even over the summer months jerseys sell.how often have you been on xmas holidays when it has turned cold?

[karen1]

Just for Percy, and on sale too:

http://www.woolovers.co.nz/mens/jumpers

[percy]

Just for Percy, and on sale too:

http://www.woolovers.co.nz/mens/jumpers

Thanks karen1.Nice looking gear.

[Nuts]

is it possib le this co could make an acquition with the debt they have and with a sp of 23 ? it would have to be quite a small acuisition would it not ?

[Lizard]

Just for Percy, and on sale too:

http://www.woolovers.co.nz/mens/jumpers

So, how many do we have chipping in on the Argyle for Percy then? :t_up:

[macduffy]

is it possib le this co could make an acquition with the debt they have and with a sp of 23 ? it would have to be quite a small acuisition would it not ?

I hope not!

Best thing that this company can do would be to concentrate on their knitting - sorry, Percy - and make a decent profit with what they have.

:mellow:

[percy]

Store Visit;
Today
Timaru.Remember when granma used to shop at the haberdashery store that had everything.Take Gran to Postie Timaru and she will be in retail heaven.!!!! For those of us under 90 stay well away.
Two interesting things to note;1/ small people do not shop at Postie.This was confirmed today as all the menswear on the under $10 stands were size small.
2/The Girl Guide biscuits by the counter.In my haste to get out of the store I did not notice if they were past "their best used by date" so can't confirm if they are a Ron "job lot" or a "charity lot." What must be a concern to shareholders is that they did not look out of place with all the other beads,bangles,make up etc.I would think you would need to close the store for a week or more to do a stock take.! They had a lot of stock.A lot of stock. Forget stock turns here,if you sold all that stock in 2 years you would be doing really well.They had a lot of stock.
Again in my haste to get out I did not look for jerseys.!!!

[winner69]

Percy - you might enjoy this article from the BWR ... retail ain't dead if you do it right and stock jumpers when punters want them

Charity begins at the stores

Bianca Szekely points back through the store window.

“There are Guess jeans in there for $50. They’re normally $80.”

The school-leaver has just stepped out of the Salvos Store in Bourke Street, Melbourne. She is with three friends on one of their regular “op-shopping” trips. For Bianca, hunting for clothes in second-hand stores is a great hobby. She says she’s been doing it for “five or six” years.

“The quality is just like what you would get in a store,” she enthuses.

The reaction of a customer such as 17-year-old Bianca is music to Allen Dewhirst’s ears. She represents the success of a strategy that the Salvos Stores chief and former managing director of Hertz Rent-a-Car has led to make the country’s biggest op-shop into a more professionally run operation.

It has worked. Over the past six years, the Salvos Stores “surplus” – as it calls the profit it hands to parent body the Salvation Army – has risen by $10 milliion, riding on, and encouraging, a trend that favours second-hand goods over new.

Dewhirst’s involvement started six years ago when, rather than retire, he saw a vacancy in the Salvation Army newsletter War Cry, for a retail operations head and decided to apply. He discussed it with his wife, whom he says was very keen for him to keep working.

He soon saw a great opportunity for change in the Salvos organisation.

“When I came on board it was ‘just do your best love, it’ll be OK’,” Dewhirst recalls. “That was our standard at that time. We pretty much needed to change everything.”

He is quick not to criticise the former management, pointing out they had increased the organisation’s profit from $3 million to $7.9 million in 10 years, but says – as he put it to his bosses, the Salvation Army’s leadership – they could do more.

“There is an opportunity to take this op-shop business to a retail recycling business and make it professional,” he told them. The first thing was to change the name. In 2006, a year after he started, the stores were rebranded, doing away with “Family Stores” and playing on the organisation’s core strength – its name.

“Everyone in Australia knows who a Salvo is, what the Salvos are, so we changed it to Salvos Stores.”

The next bit was harder. It meant culling people who were well-intentioned but weren’t up to the job.

“The organisation had gone through a period of promoting from within, so people who were volunteers became sales assistants, became store managers, even area managers,” he says. “Which was very nice but for many of them, they were promoted beyond their skills. Lovely people but promoted beyond their skills.”

This involved a restructuring of the organisation, cutting 19 geographical areas to 13 and over time hiring people from a mainstream retail background. His staff come from familiar names such as Myer, David Jones, Lincraft, Sportscraft and Laura Ashley.

Another charity, the Red Cross, has 160 stores, which contribute just over one-quarter of its income. The director of commercial operations, John Wills, has led a turnaround that over the past 2½ years has resulted in the development of four streams: op-shops, clothing boutiques, Red Threads fashion boutiques and Vintage stores.

Wills, a former managing director of clothing brand JAG and director at women’s fashion retailer Sussan, says about 40 per cent of his 160 paid staff have mainstream retail experience.

“They bring a wealth of experience with how retail works, setting sales targets, managing a store,” he says.

One task for these organisations has been to fight the stigma that kept people out of op-shops. In the case of Salvos Stores, this has been helped by campaigns such as its “Buy nothing new month”, “$2 Monday madness” and “Student Wednesday” promotions.

The push has extended the stores’ reach beyond – but not away from – the stores’ core customer, whose profile is a 45-year-old woman who visits two or three times a week, often for the social contact as much as shopping.

“We have specifically gone after a younger market to try and help them take away that stigma of ‘you don’t buy from op-shops’,” Dewhirst says. “We’re finding now our customer age group is dropping and that a lot of young people are going in to buy the retro stuff.”

The business now has 4500 fans on its Facebook page and has plans to start an eBay online store. Profit has more than doubled to $17.2 million from $7.9 million in six years, on turnover of $90 million. The turnaround story won Salvos Stores a commendation at last year’s Australian Retailers Association annual awards.

Not even a love of retro and an economy-inspired appreciation of second-hand has been able to shield the op-shop trade from the retail slump, however. At first, it didn’t look like that. The government’s economic stimulus handouts were a particular boon that sent business “through the roof”, pushing year-on-year sales growth up to 12 per cent, Dewhirst says.

This gave him confidence that his business would be immune from the slowdown hitting the mainstream industry. He was wrong. Sales kept rising but moderated to about 4 per cent.

“We had a really tough financial year like everybody else.”

Now, he says, boosted by the “I love Salvos Stores” campaign that started in August last year and will continue until April, sales growth is back up to about 8 per cent.

The crucial difference between a charitable recycler and mainstream retail, of course, is the stock. It comes from donations. A breakdown of Salvos Stores merchandise is 80 per cent clothing, 15 per cent furniture and 5 per cent bric-a-brac. While in the past the organisation relied completely on donations to meet its needs – it needs furniture for welfare clients referred to it by the Salvation Army who are given vouchers to use at the stores – since mid-2010 it has started buying beds and mattresses. Dewhirst puts that down to the tight economic times.

“We’re certainly not getting furniture,” he says. “People are keeping their furniture longer. We are still in desperate need of good quality furniture more than anything else.”

The quality of clothing donations has also declined. Cheap shirts costing $10 in the first place have a lot less wear in them than a designer shirt, he laments.

Donations from the likes of David Jones and Sportscraft mean about 10 per cent of stock in any store is new, Dewhirst says. The organisation’s corporate ties are growing. Salvos Stores has an annual promotion with outdoor brand Snowgum, for example. And in August, Salvo Stores will launch a tie-up with Myer, whereby customers donating a Myer private-label garment to a Salvos Store will get a discount voucher they can redeem on a new item at the department store.

While a good idea, the reality may prove hard. The Red Cross ended a similar tie-up with Country Road after 12 months. While it started off with a bang, it tapered off.

“When spoke to customers, they would say ‘It’s annoying, I put clothes in the car and forget to drop them off. Is there some place else more convenient we can take it?’ ” Wills says. His organisation is now looking at distributing donation bins in community sites such as businesses and local libraries.

The annual post-Christmas rush of donations, which started on Boxing Day at the country’s 212 Salvos Stores, was the biggest the organisation had ever seen. While donations are crucial, they bring costs. Throughout the year, about one-quarter of the stores open on Sundays to receive donations. If they don’t, by the Monday morning the best goods will have been stolen and the rest often damaged by weather.

Another side effect of receiving donations is being lumped with people’s rubbish. Households keen to avoid paying landfill fees on their rubbish – which in Victoria are $44 a tonne – frequently dump it outside Salvos Stores. These aren’t even donations of dodgy merchandise, it is pure rubbish. The post-Christmas donation rush also saw a 20 per cent increase in refuse left at Salvos Stores.

Unlike other states, where charities are exempt from landfill fees, the Victorian state government levies them. It is just another cost the charity says it could do without.

“We spend, collectively, about $5 million a year on dumping other people’s rubbish. That’s another $5 million that could help Salvation Army programs,” Dewhirst says.

UK’s Oxfam leads the way
| Michael Bleby
Moves by Australian op-shops to be more professional follow a trend started in the UK more than a decade ago.

Oxfam may be the best known example for spearheading the move to offer cheap, good-quality clothing, boosted by celebrity endorsements and a growing appreciation of second-hand chic. Victoria Beckham’s visit to an Oxfam store in London’s Notting Hill in 2006, for example, where she presented an 87-year-old store worker with an award for his charity work, while buying a dress and a book about fashion – reportedly saw store sales triple, donations rise 70 per cent and a boost to its stores across the UK.

The Oxford-based charity’s retail arm has embraced the mainstream – or made “alternative” more mainstream, perhaps, by offering services such as a wedding function – selling recycled bridal gowns, ethical silver jewellery, ethical wedding gift lists (of items such as a goat for villagers in a developing country) and a wedding planning service.

Others are doing it, too – both promoting, and benefiting from, a change of culture that means second-hand is no longer something to shun and that thrift, rather than increased consumption, is good.

“This organisation saw it through the British Red Cross, which started it about eight years ago in the UK,” says John Mills, head of the Australian Red Cross’s retail operation. “The Red Cross got the idea in Australia to say ‘look what they’re doing in the UK’.”

[percy]

Another great article winner69.
Not an easy business to run.As well as being profitable the "salvos" have to have their wares priced for the needy.
The comment about $10 new shirts,makes us realise that they have great difficulty in getting quality goods to sell.
The amount each store spends on dumping fees runs into the thousands.
Each store does their own pricing of goods,which again is an art to have everything at fair prices.
Brand,store location,store layout,displays, rent,staff are are the same as other retailers.
There is a great deal of goodwill in the community for these stores.
They receive help from manufacturers and other retailers.I believe Tim Glasson of HGL has given them goods and a great deal of expert free advice,for a number of years.

[Nuts]

The sale of baby city must be positive for ppg , its a chain which will be better run and more profitable under private hands . give postie a better footing to add a chain more in keeping with what they do .
agree ?

[macduffy]

Was Baby City such a drain on PPG's business and/or management that it was better sold? I don't entirely buy that "did not fit the group's business model and growth stategy" line - often code for "we're losing money on this business and can't turn it around".

OK, I'm in a particularly cynical mood this morning but PPG has been a perennial underperformer and I'm kicking myself for hanging in there! I blame Jan Cameron of course. She must know what she's doing, holding that 19.88% stake, mustn't she?

:confused:

I notice that the announcement talks about acquiring "complementary brands". I'd hope that doesn't mean another "chain" of stores. They have plenty of them as it is, I'd have thought.

[percy]

Very experienced retailer has brought the business,so would expect the business to continue to do well.
What is left is 82 poorly performing postie Plus stores,with a company wanting more cash from shareholders.
I prefer companies that pay me cash.

[Nuts]

whatever , the news has helped the sp rise , i wouldnt suprised to see this co do well in the future ...

[percy]

whatever , the news has helped the sp rise , i wouldnt suprised to see this co do well in the future ...

I think you are right Nuts.I have always thought it was Baby City's profit that was keeping Postie afloat.Going from this morning's article in "The Press" Baby City has in fact been unprofitable and holding Postie back over the last 2 years.This fact would also have meant management would have spent a lot of their time on Baby City problems.So the future does look a lot brighter.Maybe a little weakness during capital raising would be a good time for anyboby wanting to add to their holding.I am still staying well away from retailers,as I think they face uphill problems.

[Nuts]

good comment Percy but yes you have had it around the wrong way . I have always thought that their other companies Arbucles and Baby city could have been made a success of if they had put more effort into them rather than selling out .one wonders just what they intend to buy now as there doesnt seem to be a lot of choice around nz. I hope there not looking at the likes of T and T which always seems to be a struggle .
im not that knowledgeable of chains in the North island but there doesnt seem that much up there that would be a big contributor or is there ??
rgds

[percy]

good comment Percy but yes you have had it around the wrong way . I have always thought that their other companies Arbucles and Baby city could have been made a success of if they had put more effort into them rather than selling out .one wonders just what they intend to buy now as there doesnt seem to be a lot of choice around nz. I hope there not looking at the likes of T and T which always seems to be a struggle .
im not that knowledgeable of chains in the North island but there doesnt seem that much up there that would be a big contributor or is there ??
rgds
I do not know what they have in mind,but after Arbucles and Baby City I would expect it to be women's fashion apparrel.I am sure they have had it lined up, so are now selling Baby City,and getting their finances right.Should Ron Boskill decide to go back to shoe retailing,sell and run for the hills.!!!!!
May be a chain of Woolie Pulie stores.

[winner69]

I do not know what they have in mind,but after Arbucles and Baby City I would expect it to be women's fashion apparrel.I am sure they have had it lined up, so are now selling Baby City,and getting their finances right.Should Ron Boskill decide to go back to shoe retailing,sell and run for the hills.!!!!!
May be a chain of Woolie Pulie stores.

Talking of Arbuckle I see his latest venture seems to have gone belly up

[percy]

Talking of Arbuckle I see his latest venture seems to have gone belly up

No surprises there.!
When he had Arbuckles,he brought cheap sheets,pillow cases etc in China and shipped container loads of the stuff here. The problem he struck in the latest venture was the plastic goods costs too much to freight from China.Plastic laundry baskets ,50 litre water containers,storage boxes etc took up too much room in a shipping container.Where he could fit thousands upon thousands of pillow cases, he could only fit limited plastic products.He then moved to be a clearing house/discounter.This is a very growded retail space,and his shops ended up looking a proper disgrace.No direction at all."Sh*t shops."

[winner69]

I do not know what they have in mind,but after Arbucles and Baby City I would expect it to be women's fashion apparrel.I am sure they have had it lined up, so are now selling Baby City,and getting their finances right.]Should Ron Boskill decide to go back to shoe retailing,sell and run for the hills.!!!!![/
May be a chain of Woolie Pulie stores.


Percy on HBY thread - Well that's interesting.Ron Boskell MD of Postie Plus has an employment history in shoe retailing.Postie are selling Baby City and going to shareholders for funds for a large retail purchase> Hannahs?

What way do you go Percy .... something big and more fashionable/upmarket/better known could be a game breaker for PPG

[percy]

What way do you go Percy .... something big and more fashionable/upmarket/better known could be a game breaker for PPG

Could be.PPG has a market cap of $11.2 mil,and carries a good deal of debt.Selling Baby City will reduce liabilities but they are going to have to raise a good deal of money to buy a game breaker.Over extending themselves in a difficult retail market could end up as a company breaker.

[percy]

Timaru Postie store 11.30am this morning.Percy is behind the counter looking at menswear rake when a "gentleman" approaches the counter and asks;"Have the Pilgrim crew neck woollen jerseys arrived in yet?"
"No,we have had a memo from head office that they should be here."
"Well you have been saying that since last November," replied "gentleman" customer.
Percy left the store happy that he is not alone.!!!!!!!!

[janner]

And Woollie Pullie less !!..

The moon man is predicting a mild winter if that is any consolation :-))

[percy]

And so it came to pass,the Woollie Pullie Pilgrim brand appears to have been replaced by the strongman brand.Still woollie,100% Shetland,still made just north of Auckland ie China.Price is up $5,but today they had a special,buy two and receive 30%. discount.Which I did.
Now all I need is for Swanndri to replace the woollie pullie that acted like an acrylic one,.

[POSSUM THE CAT]

Percy you will probably find your size will be different because in the shirts A large in strongman equals an extra large in pilgrim

[percy]

Percy you will probably find your size will be different because in the shirts A large in strongman equals an extra large in pilgrim

Just tried them on.brought extra large,fits OK.Thanks.

[percy]

And Woollie Pullie less !!..

The moon man is predicting a mild winter if that is any consolation :-))

Been very cold today.

[Nuts]

toccWell its all done and dusted , meeting today approved sale of baby city. no indication of acuisition but they are
hard AT IT what ever it is . directors indicated they are very conscious of need to lift
SP and get divs flowing.
we shall see eh

[POSSUM THE CAT]

Got their latest expensive mailer on Wednesday some Jerseys of interest went in to view today and saw such cr*p that i would not have paid Five cents for. IMHO the sooner they fire the total management the better. Kindergarten Kids would do a better job.

[percy]

Well done PPG.
The announcement about doubling in size and moving to Auckland was made during the day and widely reported,while the announcement that they were in breach of their banking covenants was left to late friday afternoon and not reported.

[winner69]

Well done PPG.
The announcement about doubling in size and moving to Auckland was made during the day and widely reported,while the announcement that they were in breach of their banking covenants was left to late friday afternoon and not reported.

The headline story sort of reads selling a part of the business to keep the bank happy ... but we also going to double in size

Seems a contradiction something must be wrong if they sell more than $100m of stuff (not many jerseys though) yet can't sevive a $8m loan without the bank getting worried

And restructures (agin) and moving things North seem expensive

But then what do I know

[percy]

As I do not understand the laws of liable I will change the subject and tell you a little true story.
Once upon a time there was a friend of Percy's who was broke.He went out an brought the flashish of cars on HP.He managed to keep creditors at bay for over two years.He then told everyone he was going to live in Hawai.Everyone thought he must be really wealthy to drive a flash car and be going to live in Hawai.
He did live happy ever after,as he left his debts here.Not a happy ending for his creditors however .

[Ekrub]

If retailers are celebrating their best quarter for sales in more than a year,
(official figures show sales rose 1-point-1 percent in April, May and June,
the biggest quarterly increase since March 2011), why the heck is PPG's
SP languishing? No change today so far....20c.

And what would be a game-breaker? Not menswear methinks, dreadful.

The ads are bright, the shops spacious, or is that understocked?
And the annual reports always upbeat, but we go nowhere, ah well!

[stoploss]

Very experienced retailer has brought the business,so would expect the business to continue to do well.
What is left is 82 poorly performing postie Plus stores,with a company wanting more cash from shareholders.
I prefer companies that pay me cash.

http://www.stuff.co.nz/dominion-post/business/7891747/Thorndon-store-adds-to-Babycitys-offerings

Looks pretty happy with the purchase .......

[percy]

http://www.stuff.co.nz/dominion-post/business/7891747/Thorndon-store-adds-to-Babycitys-offerings

Looks pretty happy with the purchase .......

Thanks for the link.Certainly does look happy.!!!!! Good for him>!

[macduffy]

Another of those pesky unsolicited offers around again.

This time from a company named Zero Commission NZ Ltd, offering 21cps for holdings in PPG of 10,000 shares or less. This time the price offered isn't entirely unrealistic, with PPG trading - or actually not trading today, but bid at 23c, offer at 24c. At 21c it may be worth considering for very small holdings but certainly not for 10,000 shares where a 2cps difference is worth $200 - more than enough to pay the most expensive brokerage, I would think!

[percy]

I had a couple of friends who received a Zero offer for their SCY shares.As they were the only shares they held,and they did not know a broker I told them to accept the offer,as it was close to what they would have received after one off brokerage..
The people behind Zero are Roy Jackson [ex broker] and our old friend Phillip Briggs from The A letter and Equity research company fame.I repect Briggs.

[percy]

Not good news - breach of banking covenants.

https://www.nzx.com/companies/PPG/announcements/230694

"PPGL advises that it has identified potential breaches of its banking covenants for the financial months of November 2012, January and April 2013. Although it is not clear to PPGL whether breaches will in fact occur, the company will advise the BNZ and discuss the bank’s requirements for the relevant periods."

The vagueness of whether they will breach is curious given they are certain of the times the potential breach may occur. Are their revenues/earnings that unstable?




No surprises there.!!! ????
Vagueness ????/ Yes. Better not say more.!!!!!!!!!! lol.
No laughs for staff and shareholders,however .Is it end of January Ron Boskill retires? Going to be a test of character for new CEO,should it avoid bank appointed administrator,or receivership.

[macduffy]

Another of those pesky unsolicited offers around again.

This time from a company named Zero Commission NZ Ltd, offering 21cps for holdings in PPG of 10,000 shares or less. This time the price offered isn't entirely unrealistic, with PPG trading - or actually not trading today, but bid at 23c, offer at 24c. At 21c it may be worth considering for very small holdings but certainly not for 10,000 shares where a 2cps difference is worth $200 - more than enough to pay the most expensive brokerage, I would think!

Looking like 21c was a good idea - for sellers!

Either that, or Zero Commission have reasons to be confident in buying.

[percy]

Looking like 21c was a good idea - for sellers!

Either that, or Zero Commission have reasons to be confident in buying.

lol.
Don't know how Phil Briggs would go running Postie? My thinking is he couldn't be any worse than present CEO.

[percy]

No surprises there.!!! ????
Vagueness ????/ Yes. Better not say more.!!!!!!!!!! lol.
No laughs for staff and shareholders,however .Is it end of January Ron Boskill retires? Going to be a test of character for new CEO,should it avoid bank appointed administrator,or receivership.

Banking facilities extended for a further year........????????? !!!!!!!!
Seems a funny way of doing things to me.
I would have spoken to the bank first.Why spook staff,shareholders,suppliers,landlords.?

[macduffy]

Probably a case of not wanting to risk an uninformed market, ie "Have you heard that PPG are talking to their bankers?" .... that sort of thing.

[Felix]

You have to wonder why they needed to announce potential breaches, especially when I guess they had a meeting booked to talk to the bank the following day. Why not wait until you had talked to the bank and discussed whether the potential breaches were real? Seems an unnecessary announcement to spook the market.

Agree with MacDuffy that a likely explanation is that there was market speculation about bank discussions. I'm sure it's taking company disclosure requirements too far if a company needed to announce potential issues.

[percy]

Good to know the gunnas at PPG are still alive and gunning.!!!Gunna do this,gunna do that.
"PPGL has EMBRACED THE NEW AGE and we are 100% committed to making a success of online activities'.[about 5 years late]
After MONTHS OF PLANNING a new distribution and warehousing solution [ we cocked it up] ,resulting in Postie trading -1.4% and School Tex -17%.No surprises there.!
The prize did go to "the balance sheet strength" for the funniest remark.
Ron not being replaced.Chairman Punter looks as though he will take on more of a hands on gunna role.
We all look forward to Postie taking on the Aucland market next year with renewed "figga".

[Nuts]

Your pretty negative again Percy , i didnt get that vibe at the meeting , i feel they are certainly trying hard during a trying time for most retailers.
They are certainly very aware of shareholders impatience for sp growth and a decent div flow now.

[percy]

Your pretty negative again Percy , i didnt get that vibe at the meeting , i feel they are certainly trying hard during a trying time for most retailers.
They are certainly very aware of shareholders impatience for sp growth and a decent div flow now.

Nuts.
I am sorry.I was offcourse being negative and taking "the piss".
However PPG have a record of not delivering on promises.Between 5 and 10 years of failure to deliver.!!! They talk the talk,but can't walk the walk.Be careful.
Move to Auckland so they can attract good staff? EBO,Estaronline,Smiths City etc stay in ChCh because they can retain good staff.? So again they do something that does not add up to me.

[winner69]

This pogo thing woll save them ....

We are pleased to announce that in the first half of 2013 we will launch POGO, a specialty business that builds on our existing knowledge of selling product in Health and Beauty.
This brand has been developed over the past year and with considerable research. It has a sense of fun, it is full of energy, it is intended to be impulsive. It moves into a market where there is a high disposable income. Our research data has given us confidence, as all people involved in the research across many age groups had one piece of advice; can I have a store near me please!


And I like their focus on Auckland ...as Ron says population growth is god so a good place to be for PPG ......China next methinks. ......that Ron is pretty smart

[macduffy]

Optimism is fine but it's hard to find much about PPG to warrant that.

- Difficult retailing conditions.

- Slow to adapt to the e-commerce model.

- Still have a sizable rental expense to meet.

- Any competitive edge over the likes of Warehouse, KMart etc? Possibly the school uniform sector?

Another year fighting for skinny profits, I fear.

[winner69]

Here is a word cloud of RFon's speech .... Percy he didn't say gunna once

But speech positive

[percy]

Here is a word cloud of RFon's speech .... Percy he didn't say gunna once

But speech positive

That image is like the Gunna's First Dictionary of great gunner words.
Talent,acquisition,team,key improved knowledge,brand,confident,new growth,future,benefits,transition,and my favourite LOGISTICS.

[Guild]

Our school like a lot of others have cancelled their contract with Schooltex because of their poor delivery of uniforms I am not suprised that they were not making money. When the contract about 7 years ago was first negotiated they provided a great service, with good backup. They were supposed to liase with the school re expected intakes and pupil numbers. It has steadily got worse over the years with shortages in many sizes especially for new entrants. Some uniforms were taking over a term to be made. We were accepting any kind of plain navy top for a while. This was a real shame for our school and the image that we had fostered with our pupils and families.

At one stage they ended up with a whole lot of size 14 uniforms this for a primary school to age 10-11, they asked us to reduce their stock in this size, they were only ever supposed to have a couple of larger uniforms available. Another time they made a complete run of school tops in the wrong colour, a colour that the school had ordered for the choir and sports uniforms, no apologies or explanation. When they were asked to remove these from the shop they continued to sell them until their head office was contacted. We still have a mixture of tops at our school as we did not want the parents to have to pay twice.
Postie plus transferred the stock from the local Postie Plus to New Brighton, we were advised that their was no choice as New Brighton had more floor space available. At the time they said all school uniforms would be going there and they would have 1 of every size available, yeah right. My own experience here was frightful when I went to get my daughters uniform they didn't have her size, but ordered it in for me. I offered to pay for the uniform in advance and for them to courier the uniform to me, they said that wasn't possible and I would need to collect. When they finally rang to say that the uniform was ready and I went to collect it they had a winter uniform instead of a Summer one. Eventually the correct uniform was suppied but I still had to go and collect it.
Before New Brighton a few years earlier I had tried to get the local Postie Plus to courier out a school top, they said sorry not company policy. Not sure if it is still the case, but they need to move into this century. Uniforms should be available via telephone or internet sales.
Retail may be hard but these clowns made it hard for themselves.

[Guild]

And I don't hold Postie Plus shares although I do hold other retail shares.

[winner69]

That image is like the Gunna's First Dictionary of great gunner words.
Talent,acquisition,team,key improved knowledge,brand,confident,new growth,future,benefits,transition,and my favourite LOGISTICS.

That is why I did this word cloud specially for you percy .... yes those were the most used words in his presentation ..... the bigger the font the more it was used .... yep big gunna words eh

This POGO things looks like a recipe for disaster .... how many have gone that track before .... and being totally convinced by focus groups really mean they have lost the plot

I still have this morbid fascination with PPG .... since that tip sheet joker whose name I can't remember touted it so much many years ago the share price went from 60 to 120 (prob as he unloaded what he bought before the tip of the century)

But then again Nuts may be right and there is a good future for PPG

[percy]

Our school like a lot of others have cancelled their contract with Schooltex because of their poor delivery of uniforms I am not suprised that they were not making money. When the contract about 7 years ago was first negotiated they provided a great service, with good backup. They were supposed to liase with the school re expected intakes and pupil numbers. It has steadily got worse over the years with shortages in many sizes especially for new entrants. Some uniforms were taking over a term to be made. We were accepting any kind of plain navy top for a while. This was a real shame for our school and the image that we had fostered with our pupils and families.

At one stage they ended up with a whole lot of size 14 uniforms this for a primary school to age 10-11, they asked us to reduce their stock in this size, they were only ever supposed to have a couple of larger uniforms available. Another time they made a complete run of school tops in the wrong colour, a colour that the school had ordered for the choir and sports uniforms, no apologies or explanation. When they were asked to remove these from the shop they continued to sell them until their head office was contacted. We still have a mixture of tops at our school as we did not want the parents to have to pay twice.
Postie plus transferred the stock from the local Postie Plus to New Brighton, we were advised that their was no choice as New Brighton had more floor space available. At the time they said all school uniforms would be going there and they would have 1 of every size available, yeah right. My own experience here was frightful when I went to get my daughters uniform they didn't have her size, but ordered it in for me. I offered to pay for the uniform in advance and for them to courier the uniform to me, they said that wasn't possible and I would need to collect. When they finally rang to say that the uniform was ready and I went to collect it they had a winter uniform instead of a Summer one. Eventually the correct uniform was suppied but I still had to go and collect it.
Before New Brighton a few years earlier I had tried to get the local Postie Plus to courier out a school top, they said sorry not company policy. Not sure if it is still the case, but they need to move into this century. Uniforms should be available via telephone or internet sales.
Retail may be hard but these clowns made it hard for themselves.

What a telling post.
Imagen how business would be for them if they had the right sizes,right colours,right season uniform,at the right place at the right time.
This posts confirms what I have said for so long;they can't get the basics right.

[percy]

That is why I did this word cloud specially for you percy .... yes those were the most used words in his presentation ..... the bigger the font the more it was used .... yep big gunna words eh

This POGO things looks like a recipe for disaster .... how many have gone that track before .... and being totally convinced by focus groups really mean they have lost the plot

I still have this morbid fascination with PPG .... since that tip sheet joker whose name I can't remember touted it so much many years ago the share price went from 60 to 120 (prob as he unloaded what he bought before the tip of the century)

But then again Nuts may be right and there is a good future for PPG

I think it was James Connell of Market Analysis who may have tipped it.
I seem to remember the Dallaca family nearly went broke,,and brought in Paul Young to sort it out.He put together Arbuckles and Baby City,and they listed it.Young cut costs,and stock,yet turned a profit.Young was not a "people person" and when "charming" Ron Boskill took over Macquarries and others thought it was all go.Salvus Investments brought a holding as did percy .Gunna do this gonna do that.Filled up the shops with stock,and went for it.Bid not take long for things to go pear shape.They had to find warehouses to put all the extra stock,then spent millions on a new computer system so they could locate the stock.I sold for a $10,000 loss.Then every year there has been a new plan,move warehouse to ChCh,new brands,and in the meantime sales went down,stock holdings went up and overheads increased while borrowings increased.Ron's watches ? Pogo has a pong to it already.Guild's post says it all.I think of my jersey, that we had a good laugh about,and the trouble I had with their gift vouchers.These are all management failings.Systems not up to scratch.Yet front line store staff are excellent.

[winner69]

Methinkss this Ron fella is nuts

Ooops didn't quite mean that ... I meant the nuts who has been posting about PPG for years and still lives the dream

[winner69]

I think it was James Connell of Market Analysis who may have tipped it.
I seem to remember the Dallaca family nearly went broke,,and brought in Paul Young to sort it

It was James CoRnell

He ramped the hellut of Smith City once as well

[janner]

It was James CoRnell

He ramped the hellut of Smith City once as well

Smith City !!.. One of your holdings at one time I think Perc !!..

Was it before or after James Cornell ??

[janner]

Winner69.

If you were in the competition i would take your posting on two " the king buys ".. as a way of knobbling my streaking from behind..
Thus taking away the winners Bragging rights.. From me..

But you are not in the compo..

Please explain as to why you are posting on two sites on the same subject ??..

One it must be said is outdated.. Are you :-))

[janner]

Although it must be said .. there is nothing wrong with delving into the past..

[winner69]

janner - there are several postie threads and the other one is older and far more interesting than this one that nuts started last year ...... and i wanted to reply to a post that was on the original thread

blame nuts for starting a new thread when a more than adequate one existed .... maybe not a good idea to blame nuts .... i think he started the new one to hide all the bad news and was hoping the new thread would be all about the turnaround .... so shall we forgive him after all?

[winner69]

Although it must be said .. there is nothing wrong with delving into the past..

especially when the past is repaeting itself

[percy]

Smith City !!.. One of your holdings at one time I think Perc !!..

Was it before or after James Cornell ??

From memory I started buying Smiths City on the day they were delisted as they were going into receivership.I think it was either 1990 or 1991.I think James Cornell started to recommend them about 10 or 12 years later.

[janner]

10 or 12 years later.. Hahahaaa..

Started buying !!.. Heck you must have had inside info or a big pair of balls Perc..

How many children did you say you have :-))

[percy]

[QUOTE=janner;387317]10 or 12 years later.. Hahahaaa..

Started buying !!.. Heck you must have had inside info or a big pair of balls Perc..

Big balls to start with.
Once they were in receivership I was buying some fence paint.Did not have enough.They were out of stock.I asked when they would be getting more?.About 3pm this afternoon.So I thought even with them being in receivership they were having no trouble getting supplied.I then had a really good look around the Colombo street store.Well stocked,no old stock ,good service.Thought to myself they know what they are doing.Mother in law ordered a new carpet and prepaid it.I realised then customers still trusted Smiths.Rang the company secretary to find out what would happen if I brought more shares,No problem; we are still paying the share registry.Getting shares was hard,then I had brokers selling me odd lots without brokerage so they could clear up deceased estates.
Paul Preston the receiver had done The Farmers receivership when Chase got into trouble,so he realised the value of the customer loyalty Smiths enjoyed.Chairman Bill Revell and all the directors worked without pay.John Holdsworth [director] Craig Boyce then CEO,and Rick Hellings all played important parts.When Bill Revell retired they were lucky to get John Dobson as a director.Right people at the right place at the right time.I note John Holdsworth has retired at Datacom to be replaced by Craig Boyce.
I found out years later that customers went in a paid up their accounts to help Smiths out.
Daughters still have a few shares but I sold out about 4 years ago.

[janner]

Thanks percy.

That is a very good example of what a little DYOR can make, in coming to the right decision..





[QUOTE=janner;387317]10 or 12 years later.. Hahahaaa..

Started buying !!.. Heck you must have had inside info or a big pair of balls Perc..

Big balls to start with.
Once they were in receivership I was buying some fence paint.Did not have enough.They were out of stock.I asked when they would be getting more?.About 3pm this afternoon.So I thought even with them being in receivership they were having no trouble getting supplied.I then had a really good look around the Colombo street store.Well stocked,no old stock ,good service.Thought to myself they know what they are doing.Mother in law ordered a new carpet and prepaid it.I realised then customers still trusted Smiths.Rang the company secretary to find out what would happen if I brought more shares,No problem; we are still paying the share registry.Getting shares was hard,then I had brokers selling me odd lots without brokerage so they could clear up deceased estates.
Paul Preston the receiver had done The Farmers receivership when Chase got into trouble,so he realised the value of the customer loyalty Smiths enjoyed.Chairman Bill Revell and all the directors worked without pay.John Holdsworth [director] Craig Boyce then CEO,and Rick Hellings all played important parts.When Bill Revell retired they were lucky to get John Dobson as a director.Right people at the right place at the right time.I note John Holdsworth has retired at Datacom to be replaced by Craig Boyce.
I found out years later that customers went in a paid up their accounts to help Smiths out.
Daughters still have a few shares but I sold out about 4 years ago.

[Nuts]

letshope PPG is benefitting from some of this supposed extra spending this xmas . the malls here seem busy enuf to help some retailers.

[winner69]

oh dear ... things not going to plan and another loss coming up

lets hope that postie was the secret project kw was working on that is going to change the retailing world

postie need something

[Nuts]

turning into a hopeless company I think. they should have waited till they had a bit of profit coming in b4 any move to Auckland I would have thort,
down to buy at 15 this morning.

[POSSUM THE CAT]

NUTS This cat has been ridiculed for saying this stock went Woof Woof years ago

[Felix]

Hopefully Postie is able to seek some compensate from the logistics and service distribution provider for their shoddy service. Most concerning is how the company can stumble from one problem to another over several years. Are the directors asleep at the wheel?

It's really disappointing that most retailers are finally posting some good sales and profits but Postie is missing out. You'd have to think that purchasing another business is now unachievable this year and really they should get their house in order before making a big push into the Auckland market.

[winner69]

Most concerning is how the company can stumble from one problem to another Felix says

And no doubt they will continue to stumble again and again ...that's the track record

[Ekrub]

40 million shares on issue, only about 260 thousand traded yesterday. (Friday).

So Jan Cameron and most of the rest of us didn't rush for the exit.

But you do have to wonder about strategy, and quality of management.

[percy]

In the meantime while sales are lower [only distribution problems?] overheads in the way of rents, power,telephone,computer systems, insurance,rates,staff wages,compliance costs,continue to go up.
Strategy? No.
Quality of mangement? No.
Store staff? Yes.
Rush for the exit was impossible with only 300,000 shares on the bid.
Survival will depend on the terms of the store leases.

[janner]

In the meantime while sales are lower [only distribution problems?] overheads in the way of rents, power,telephone,computer systems, insurance,rates,staff wages,compliance costs,continue to go up.
Strategy? No.
Quality of mangement? No.
Store staff? Yes.
Rush for the exit was impossible with only 300,000 shares on the bid.
Survival will depend on the terms of the store leases.

Correct Percy.. Is it not about time that the likes of Westfield came down to earth..

Belt tightening is/are the word/s of the day at present..

With long term happy clients they could cut way back on the Sales Department..

Easier for accounting.. etc..

[janner]

Oooops.. they are not sales people.. I should have said ..

Promotions Department.. With happy clients who needs them ??

[percy]

Correct Percy.. Is it not about time that the likes of Westfield came down to earth..

Belt tightening is/are the word/s of the day at present..

With long term happy clients they could cut way back on the Sales Department..

Easier for accounting.. etc..

I was reading The Age this morning and see Westfield retail trust shares have been marked down after the Lowy family group's surprise exit.
"if sales growth in Australia did not pick up,rents may have to fall."
Bit like shutting the gate after the horse has bolted.

[janner]

I was reading The Age this morning and see Westfield retail trust shares have been marked down after the Lowy family group's surprise exit.
"if sales growth in Australia did not pick up,rents may have to fall."
Bit like shutting the gate after the horse has bolted.

Can only say one thing on that Percy.. Deserves the greedy bastards right.. Have you ever enquired into the cost of a place in say .. Sylvia Park.. Which is not Westfield.. But the meaning is the same..

[percy]

Can only say one thing on that Percy.. Deserves the greedy bastards right.. Have you ever enquired into the cost of a place in say .. Sylvia Park.. Which is not Westfield.. But the meaning is the same..

Better be careful what I say.>>>>>.............>>>>>.
One of the worse things about people going into a retail business is that banks will want to lend on your house,not the retail business.When business has difficulties mall landlords appear to be prepared for the business to fail ,rather than reduce the rent.Shop keeper then loses the business and their house.So called valuers never look at the shop keepers business [ie how profitable,or how well run it is] before setting the rental.Rental is often set/or was set by banks expanding branches and not careing what rent they paid,so everyone else's rent went up.Major tenants such as supermarkets,The Warehouse,The Farmers,pay a lot less rent ,because the mall needs their pulling power,and they can dictate the rent they will pay.This means the small guy's rent subsidizes their rent.Tough at the bottom.
Going back to Postie.They will be paying huge rents in malls and very cheap rent in country towns.With the problems they are having they are losing margin and sales.It really has been very badly managed for years.I can't see Jan Cameron steping in to help with so many of her Australian stores in "administration."

[janner]

In the end Perc... It all comes down to Greedy overheads..

You go broke.. .. Move on.. Where have i heard that statement before.. ??

No reality ..

[pedrothekiwi]

Just try walking into one of they're stores - their stock is crap. Compare them to Farmers or Hallensteins etc and I know where I'd put my money.

[percy]

Just try walking into one of they're stores - their stock is crap. Compare them to Farmers or Hallensteins etc and I know where I'd put my money.

Welcome aboard sharetrader.
After your first post "being right on the money" I look forward to you future posts.

[POSSUM THE CAT]

Pedrothekiwi you just made one mistake go into Farmers & Hallensteins and you are just greeted by higher priced Crap. Go into either store & ask for trousers that are not hipsters. If they are honest they will stay they do not stock them. Others will point something out & when you try to put them on you find out they haven't got a clue. Most of the better Menswear stores will admit they do not stock ordinary fitting trousers. When they so limit their market it is no wonder they are struggling. When they so limit there stock. They believe in take it or go without. This philosophy is the reason I do not invest in clothing retailers.The clothing all comes out of China designed for Chinese Bodies.

[Nuts]

you can never buy menswear in this county without first trying the garment on ,hence the alteration shops now appearing in the malls are doing very well indeed. cost me $107 to have two new pair of trousers shortened and waist taken in recently for trousers bought ex farmers.
One thing worrying me with ppg at the moment is the chairman has taken on the ceo role and from what I can gather they don't seem to have any intention of finding a permant ceo . Altho he might be good at what he does I worry how a gentleman on many boads etc can drive a company like this.
also no reports of how they have got on with the banks , ???

[POSSUM THE CAT]

Nuts did you buy them by mail order If not why did you buy them it is people that will accept this is allowing this take it and lump it attitude to exist

[macduffy]

OK, Possum, I agree that a lot of clothing sold in this country isn't exactly Saville Row but we all (male, anyway) have to wear trousers at least part of the time. Assuming that you don't make them yourself, what and where do you buy them?

(Just curious, as I'd like a couple of pairs of nice, warm moleskins for the coming winter!)


:cool:

[Nuts]

possum, I had no choice in that I wanted a couple of nice grey trousers for a cruise . I looked all over and every pair I tried would have to be altered for the length at least, this is not unusual amongst my family and friends , yet in aussie or the states I can buy off the rack.
of more concern to me is the position of ppg , no ceo and still waiting on the the result of their discussions with the banks.
SP down to 14.5 today.

,

[POSSUM THE CAT]

macduffy I actually fluked 4 pairs of reasonable moleskins in postie about 4 years back they will probably last me until grave time for moleskins. I do not expect Saville Row but do expect them to go round my waist without the risk of crushing my balls Went into a Munns the Menswear Store assistant asked me what I was looking for. I replyed a nice pair of casual trousers that are not Hipsters. His answer was he might have a pair or two in the over $600.00 rack so as you can imagine I walked out. As you can buy a made to measure Suit for not much more.
.

[POSSUM THE CAT]

nuts by accepting it is what allows them to get away with it. But shortening I do not mind at one stage one manufacturer was leaving the legs of their trousers semi finished so that you could get the leg length you wanted. This was very handy for me as most of the time the legs were to short. Here where I live shortening a pair of trousers $5.00 average

[winner69]

postie market cap now less than 6 mill

jeez whats happened to the world

almost the opposite of xro this stock ..... postie sales 20 times it share price while xro share price 20 times sales

what a funny world we live in

[percy]

Nuts.
I am sorry I can't find where I read it,but I think General Manager will take over most of CEO's job,with The Chairman chipping in.

[percy]

postie market cap now less than 6 mill

jeez whats happened to the world

almost the opposite of xro this stock ..... postie sales 20 times it share price while xro share price 20 times sales

what a funny world we live in

The on going lease commitments are a huge liability.Overheads continue to rise,while sales fall.Stock "lost" in warehouses is liable to miss selling period.Problems are snowballing,after years of bad management.
Often receivership is the only way forward.One must also be awhere of staff entitlements,ie holidays,leave not taken.

[macduffy]

postie market cap now less than 6 mill

jeez whats happened to the world

almost the opposite of xro this stock ..... postie sales 20 times it share price while xro share price 20 times sales

what a funny world we live in

It's all about future prospects though, isn't it?

The market just doesn't have any confidence in the Postie making a comeback but sees a chance of Xero hitting the jackpot. Neither company appeals to me.

:t_down:

[percy]

Yes ... What happened with your " Woolly pully " Perc ?.. It is now Autumn.. :-)


Great news ; This year's "Woolly Pullys" are arriving in store.Barrington and Eastgate received theirs yesterday.I did note Timaru's are yet to arrive.
Now for the fun.Store retail price $39.99.Their on line store has them reduced from $34.99 to $24.97.Select your own price?

[winner69]

Great news ; This year's "Woolly Pullys" are arriving in store.Barrington and Eastgate received theirs yesterday.I did note Timaru's are yet to arrive.
Now for the fun.Store retail price $39.99.Their on line store has them reduced from $34.99 to $24.97.Select your own price?

i presume the cost to ppg is less then 25 bucks ... or at least they should be eh

[percy]

i presume the cost to ppg is less then 25 bucks ... or at least they should be eh

Their cost landed in NZ would be well under $10.

[winner69]

Their cost landed in NZ would be well under $10.

So why they not make zillions then Percy

It was a tongue in cheek comment before ......they wouldn't sell at below cost would they?

[percy]

So why they not make zillions then Percy

It was a tongue in cheek comment before ......they wouldn't sell at below cost would they?

Because they have made a very simple business very complicated.
Poor management,poor systems,hopeless distribution,lack of capital.
The jerseys arrived in store yesterday,however I expect they will have them less 30% within a couple of weeks,as they will need to keep the bank from the door.If you look at Briscoes ,KMD and Halnesteins you can work out they operate on huge margins.However ,there is no margin should goods remain unsold.All retailers face big overheads,in rent,staff,insurance etc.On line retailers have a much lower cost of operation,so they do not need the huge margin,therefore lower prices, so we can see why online sales are growing so quickly.
ps.Store staff are excellent.

[Nuts]

I think your onto it Percy . Pity they cant sell out to a better operator (for a better price of course)
I cant see any light at the end of the tunnel from here myself.

[janner]

Their cost landed in NZ would be well under $10.

I have an Addidas sports type shirt offered by REBEL @ 50% off.. $19.95..

Did not buy the that one I have from REBEL..

Purchased it in China .. " Retail " .. NZ $6.80.

Go figure...

[percy]

I have an Addidas sports type shirt offered by REBEL @ 50% off.. $19.95..

Did not buy the that one I have from REBEL..

Purchased it in China .. " Retail " .. NZ $6.80.

Go figure...


Thanks janner.No surprises there.!!!
As a side-bar; I wanted to buy a pair of light weight men's track pants.Tried Postie,Warehouse,Farmer's, Hallinsteins,and K mart.All must be made at the same factory in China.To save/reduce cost none had a back pocket to keep my wallet.

[janner]

Thanks janner.No surprises there.!!!
As a side-bar; I wanted to buy a pair of light weight men's track pants.Tried Postie,Warehouse,Farmer's, Hallinsteins,and K mart.All must be made at the same factory in China.To save/reduce cost none had a back pocket to keep my wallet.

A pocket for your wallet when running ??.. Just a " Rich Prick " eh !!..

[GTM 3442]

A pocket for your wallet when running ??..

So he can carry his wallet and ID card and make life easier for the ambulance crew in case of a heart attack.

[percy]

So he can carry his wallet and ID card and make life easier for the ambulance crew in case of a heart attack.

Thanks GTM3442,you are a gentleman.

[janner]

Thanks GTM3442,you are a gentleman.

There are so few of us left.. Right Percy !!..

[janner]

There are so few of us left.. Right Percy !!..

Now back to my Gordon Gecko moments.. :-)))))

[percy]

Now back to my Gordon Gecko moments.. :-)))))

Gordon was no gentleman [either]. lol

[Nuts]

I see ppg still talking with its bank over covenant , things looking very poor , does this mean the company could go under or suchlike ?

[winner69]

The paper said postie have 40 grand in the bank at end of feb .....not much when peak of season over

[winner69]

Looking at their balance sheet liquidity is stuffed ...cash and what debtors owe them is 3 mill ...they owe more than 7 mill to trade creditors ( prob rid in that lot) ....means they can't pay their bills at the mo unless bank helps out .....or have plenty of sales to get rid of some of that 23 mill of stock

I feel 10 buck jerseys coming up Percy

[percy]

I see ppg still talking with its bank over covenant , things looking very poor , does this mean the company could go under or suchlike ?

Yes it does.Bank will want to make sure it is first in line,and to protect it's interest.Then landlords and suppliers ,IRD and others want to protect themselves.
They could say to the board we will leave you to run it but you must put in more capital.ie go to shareholders for cash.
They could put in an administrator to sell the business,or they could appoint a receiver to trade the business,with a view to sell.
The administrator/receiver ,should they fail to sell the business, would then look to liquidate [shut shop] the business.
The major shareholder [Jan Cameron] would appear to have enough problems of her own with so many of her Aussie stores in administration,to be in a position to help.
Receivers are the proper people to sort out on going leases,rentals,staff entitlements etc.
Other than Premier, most Australian rag trade stores are closing stores on both sides of the Tasman,so a trade sale does not look good.
The low market cap [$6m] could attract a buyer,but on going leases and staff entitlements, and the bank would mean they would need to commit a lot more capital.
The present board have a very poor record,so I doudt whether shareholders would be wise giving them more capital to lose.

[percy]

[QUOTE=winner69;399242

I feel 10 buck jerseys coming up Percy[/QUOTE]
Unfortunately I think you are right.
I said along time ago Tim Glasson could sort it all out very quickly.Someone correctly pointed out either, he had more sense or, why would he bother.?

[percy]

I see ppg still talking with its bank over covenant , things looking very poor , does this mean the company could go under or suchlike ?

Further thoughts;
Postie should be entering more profitable winter season.With stock coming from China a lot will depend on terms of trade.Should the bank have to front up with a" letter of credit" I doubt they will extend more credit,without Postie fronting up with more capital.
Should the bank already provided "letter of credit" they may well decide to let Postie trade on.
The bank will be looking carefully at both Postie and the outlook for retail.Should they see a bleak retail outlook ,then Postie will face "headwinds".
Remember the old saying about a banker" is a man who lends you an umbrella while the sun is shinning,but wants it back when it starts raining.!"
In Postie's case it is raining cats and dogs.!!!!

[Nuts]

thanks for your thoughts chaps, the longer they take to announce anything with the banks the more nervous I get

[percy]

In this mornings "The Age" I see PPG shareholder Jan Cammeron's company Retail Adventures is facing charges of trading while insolvent.

[Lizard]

Another dire announcement yesterday, with autumn sales down 14% due to the distribution issues they have earlier reported. Share price seems to be off the lows at current 17cps in hopeful anticipation that they will one day turn in a positive result - and that a market cap of $6.8m may then look very low.

It would be good to see strong signs of recovery in fourth quarter sales though - otherwise, it is difficult to imagine the banks remaining supportive indefinitely.

[percy]

Nice to see a very brave buyer for 95,000 shares at 17cents.
If I held PPG he would be getting mine.!!!!!!
Interesting/difficult times ahead.
Wonder what they did with the summer stock that did not get to the shops?
The banks appear to have a problem!!!!

[percy]

Sparky.Jan Cameron has certainly had her problems with retail since Kathmandu.Most or all her Australian retail adventure stores are in administration.
Tim Glasson,as I have pointed out on a number of times on this thread,would have Postie sorted out in 5 minutes.The Normans would take 10 minutes,while Rod Duke would do it in 15 minutes.The store staff at Postie are excellent,so let's hope they get a "senior partner"and get to keep their jobs.Management/directors I wish well with their gardening leave.!!!

[percy]

Nice to see a very brave buyer for 95,000 shares at 17cents.
If I held PPG he would be getting mine.!!!!!!
Interesting/difficult times ahead.
Wonder what they did with the summer stock that did not get to the shops?
The banks appear to have a problem!!!!

Oh dear,the brave buyer now only wants 5,000 shares at 17cents......

[Arbroath]

Percy - sad news. I had a lot of respect for Jan Cameron and Kathmandu way back in the day.

Lizard - terrible news for PPG. I don't see a turnaround plan of note. Their margins will be hurt a bit by the currency dropping from 85c to 79c. They really need a senior partner like Glassons, Warehouse, or Briscoes. The Norman family would be ideal.
A new director appointed who seems to have some reasonable credentials. Will it do anything to halt the impending sense of crisis at Postie?

[percy]

Hamish Stevens is a nice guy. But does he have much to add to an ailing retailer? I guess we will find out!

Yes I agree he appears to have the right credentials.
I wondered how Postie attracted him to come on board?.[did the bank appoint him?]
Maybe a couple of years ago it may have been possible to have had some success.With retail being so difficult at present,and Postie having a lot of debt, poor cash flow, and running at a loss it would be a brave person to take on a directorship.
Again I hope I am proved to be wrong.
Noted today at the Barrington store they had some horrible men's shirts "buy one,get one free",thought to myself yeah right ,no surprises there!!
Thought I was in Russia today.Lineded up for over half an hour to buy bread>!!! True. Gave up,and was just about to drive home when I saw the bread van drive up.Brought a couple of loafes>!! Everywhere sold out as we are expecting snow.!!
ps.Luckily I have plenty of Woollie pullies>!!!

[percy]

Postie followers will find the article in today's Sunday Star Times of interest.It is about the chairman taking on the CEO's role to "stabilise" the business.
May I wish him well.

[winner69]

Really sad story eh Percy ....one has to worry when punter says "rebuilding the castle wall little by little, brick by brick"

That appears a long job .....better strategy might be demolish the wall and rebuild it completely from scratch in new materials

As you say Percy good luck to them ... I fear it may be terminal though

[winner69]

Makes you wonder how a global logistics outfit could stuff up so badly in posties case

Chairman/acting CEO seems loathe to name the outfit .....maybe part/all the problems lie with postie themselves. It takes both sides to get a decent supply chain up and running and maybe, just maybe, some of posties systems weren't up to it.

I see postie has an independent director who prides himself on info technology stuff

[percy]

Really sad story eh Percy ....one has to worry when punter says "rebuilding the castle wall little by little, brick by brick"

That appears a long job .....better strategy might be demolish the wall and rebuild it completely from scratch in new materials

As you say Percy good luck to them ... I fear it may be terminal though

Very difficult to make a positive comment.
"Rebuilding" should have been under taken when I sold out.Can't remember exactly when it was,but SP was about 95cents.May have been 2007.
I went to agm and spoke against directors getting a pay increase, as directors in other companies of similar size were getting paid less.The following annual report was so terrible I sold out at a loss.Stock levels had blown out,debt had blown out,staff liabilities had blown out. Lucky to get out.Since that time Postie have gone from one muck up to another one.Just got worse all the time.The chairman when I had shares was a lawyer.Board was very poor.Management have been hopeless,yet store staff are excellent.I too think the future for them maybe terminal.The market cap is $4.8mil [same as RNS] yet ongoing store leases, may mean the only was forward is receivership.There is no place in retail for a poorly run business.Even the well run ones such as BRG,HGL,and MHI are finding it hard.Rag trade in Aussie is hopeless,except for Premier who are doing well.Postie has never done anything well.
The outfit was named by The Press as Kuehne & Nagel. But these problems have been on going for years.

[winner69]

Percy ....please break the piggy bank and buy the whole company and put it out of its misery.

You could take home as many jerseys you want ... If the distributor has delivered them

[percy]

Percy ....please break the piggy bank and buy the whole company and put it out of its misery.

You could take home as many jerseys you want ... If the distributor has delivered them

EziBuy was recently brought for $300mil.
They started out with mail order,then online, and then retail stores.
Postie Plus had a strong mail order business which they appear to have walked away from in favour of retail stores.They went online very late.
One has been successful,while the other has gone from disaster to even bigger disasters.
On going lease and staff liabilities would scare most people from buying Postie Plus.

[winner69]

Well positioned methinks ....blue sky ahead ...shareprice that is.

This is really positive - well done PPG for fixing things up

OUTLOOK

“Over the next few months the company is working through a tight cash flow position with the support of its bank and creditors.”

“Our distribution has been stabilised. The profit improvement programme is under way and has delivered improvements. The team is busy locking in changes to improve medium term gross margin. We are still recovering from the damage to market share suffered in the second half of the year. The restructure carried out during the move to Auckland is well progressed. The new teams are passionate about the brand and looking forward to driving the business unhindered by the previous difficulties.”

“We have further improved the efficiencies of our retail operations. Operationally, our nationwide store chain is well placed to benefit from the returning levels of consumer confidence, particularly with a strong presence in Auckland and also in Christchurch, with employment growth in both our major cities now evident and important to household spending in the 2014 year.”

“We have strengthened our senior management team with the appointment of Mr Richard Binns as Chief Executive Officer, an experienced retail sector executive, who commenced with PPGL this month.”

[percy]

No customers in Barrington shop when I walked past at 3.55pm this afternoon.

[percy]

WE APPEAR TO HAVE A PROBLEM?!
What is the problem? A $11.3mil loss.
Whose problem is it?..... It is a shared problem shared by staff,shareholders,suppliers,landlords and banks.
How big is the problem?.Huge! Market cap is only $4.5 mil at 11.3 cents.
Can it be fixed? doubtfull.

[winner69]

Percy I was just trying to paint a rosy picture on a Friday afternoon .... there were positive words like -


Our distribution has been stabilised ... fixed, no more problems.

The profit improvement programme is under way and has delivered improvements. = we have cut some costs


The team is busy locking in changes to improve medium term gross margin. = we have put our prices up

The restructure carried out during the move to Auckland is well progressed. = all settled down now and business as usual (actually hope not eh)

The new teams are passionate about the brand " - they just love those free jerseys we gave them

We have further improved the efficiencies of our retail operations.

Operationally, our nationwide store chain is well placed to benefit from the returning levels of consumer confidence, particularly with a strong presence in Auckland and also in Christchurch, = those Aucklanders who are seeing their house prices rocketing are going to come to Postie in their droves ..... target market?
year."


And not even a mention of an overstock or a stock shortage of jerseys either percy

And only well placed ..... not well positioned yet

[percy]

Winner69.
I know you were being positive.
Every one is trying to be positive.
Sorry, but I remain very negative about Postie's prospects.
Paid $24.99 for a crew neck one a few weeks ago as they are sold out of the V necks.
So am well positioned. Buy their jerseys not their shares. My seat belt wears them out rubbing up by my shoulder.! Sort of light weight wool.

[winner69]

Hey Percy .... they don't even know how many jerseys / jumpers they have .... this rider to the accounts

The abridged financial statements attached to this report are also subject to finalisation of the company’s stock position, which has been challenging to complete this year as a result of the well documented disruption to distribution. The final stock position will be provided in the full 2013 Annual Report.

[winner69]

Just for a laugh did one of those Altman Z scores for PPG

A new record .... even worse than what Feltex scored and ION in Australia - shortly before they both went bust

Altman Z for PPG is 1.49 .... the creditguru man is quite nice when he says a score like this means 'Probability of financial embarrassment is very high'

Methinks they need at least 15m new capital .... and only 40 mill shares on issue ..... so they need 35 cents to 40 cents for every share held .... wonder how they get that

[percy]

Winner69.
It just does not get any better.
I don't want to get sued,so am trying to be careful what I post.

[winner69]

Winner69.
It just does not get any better.
I don't want to get sued,so am trying to be careful what I post.

Prob bank being supportive because they may have worked out that they won't get their money back if they get too heavy

That little comment about not being to finalise the inventory number is pretty damning ....balance sheet says they have 21 mill worth of jerseys and stuff .....last year they sold 42 mill of jerseys and stuff (for 84 mill) ......that sort of says they have six months worth of sales in stocks .....or every jersey on the average sits on the shelf for six months before you buy it Percy.

One would have to think there a lot of rubbish, obsolete, out of season in all that eh.

[winner69]

Moosie be into buying PPG .....he loves high gross margin businesses

PPG gross margin 50% moosie .... Thats a 100% mark up

[percy]

Prob bank being supportive because they may have worked out that they won't get their money back if they get too heavy

That little comment about not being to finalise the inventory number is pretty damning ....balance sheet says they have 21 mill worth of jerseys and stuff .....last year they sold 42 mill of jerseys and stuff (for 84 mill) ......that sort of says they have six months worth of sales in stocks .....or every jersey on the average sits on the shelf for six months before you buy it Percy.

One would have to think there a lot of rubbish, obsolete, out of season in all that eh.

I agree with ALL your well thought out posts.I donot disagree with any of them.
Having a laugh to myself.Was not that many years ago they had to put in a new computer system to try and keep track of all the stock they had in some many wharehouses.At the time I think they had enough stock for either another 50 or was it 100 more stores.These problems have been on going for years.Management have failed to get on top of them.
None of these problems have been caused by store staff.

[blackcap]

I have had these in the past but sold out a while back. Went to a PPG store the other day and as per usual it was almost empty. That for me has been the status quo whenever I did a visit. So I think the writing may be on the wall.

[winner69]

The announcements have been getting a bit cheerier since they owned up to this disaster last year.

But the numbers don't seem to back up that added confidence things are getting better

The disaster is getting worse .....gaining momentum

Like after H1 sales were only $0.7m down on the previous year

But Q3 sales were then down $3.2m (just for the quarter)

And then to top it off Q4 sales were down $6.2m bring the years shortfall to $10m odd

Even allowing for 1 week this year some where in this numbers things got progressively worse as the year went along

It's all fixed now they say so why worry ....the team that has passion has sorted it

Yes Percy - I feel sorry for those people in the stores. Probably work for 14 bucks an hour and work long hours and get pissed with customers like you who can't find the right size/colour jersey because the stupid warehouse didn't sent it .....all doing their best and maybe out of a job before Xmas

[percy]

Be very careful.Ron Boswell talks the talk but does not deliver.The talk about their great back office is only talk.
Any talk of acquisitions when they have trouble running what they have already is foolish,and will only mean more loses of shareholders funds.In a rewards program I received Postie Plus vouchers.After failing to find anything I wanted I gave them to my daughter.Was told they were invalid.It took me 3 or 4 visits to head office before the vouchers we received were valid.If they can't do the small things right they will never get the big things right.They have a record of failing to deliver.!!!

posted on 14/12/2011.
I joined sharetrader in October 2009.There have been so many Postie Plus threads started,but I am sure I started warning of the risks of buying shares in this company not long after I started posting.

[percy]

Woolie Pullie update.Yes the continuing story.
A few weeks ago I brought myself a vrew neck one at $24.99.
Well today at Tower Junction store they had V necks reduced from $39.99 to $19.97.
Got to the counter to find buy one get one free.
Saw a guy I knew looking at them.Actually had one in his hand.
Told him about buy one get on free.
He brought them both for $19.97 and sold me mine for $10.
Maybe end of story for awhile.!!!!

[macduffy]

What a spoil-sport you are, percy!

I'm sure they didn't factor in you sabotaging their marketing strategy!

;)

[percy]

What a spoil-sport you are, percy!

I'm sure they didn't factor in you sabotaging their marketing strategy!

;)

Only trying to help them out.
The less stock they have,will save them time counting it.
lol.

[QOH]

Winner69.

Paid $24.99 for a crew neck one a few weeks ago as they are sold out of the V necks.
So am well positioned. Buy their jerseys not their shares. My seat belt wears them out rubbing up by my shoulder.! Sort of light weight wool.
Percy in case the shop is no longer around when your latest jersey wears out, why not buy those sheepskin inserts you can put on your seatbelt where it rubs against your shoulder....Not that I want to deprive PPL of any sales.

[percy]

Percy in case the shop is no longer around when your latest jersey wears out, why not buy those sheepskin inserts you can put on your seatbelt where it rubs against your shoulder....Not that I want to deprive PPL of any sales.

Gee Whiz you are causing trouble here.PPG not PPL.!!!!lol.
Where do you buy the sheepskin inserts?.Sounds just what I need.

[QOH]

Gee Whiz you are causing trouble here.PPG not PPL.!!!!lol.
Where do you buy the sheepskin inserts?.Sounds just what I need.
Woops PPG.!! Probably sell them at Repco or similar, not expensive just like a cuff that goes around seatbelt and sticks together with Velcro. There you go, another first world problem solved.

[percy]

Hamish Stevens has resigned from PPG board.Only appointed 19/06/2013.Not a good sign.
Am surprised there are trades and buyers at 11.1cents.
Thought the SP would be between 2 and 4 cents.
Buyers must know things that I do n't.!!
lol.

[blackcap]

I dont understand why the banks dont try to protect their money and put this company into receivership. Surely they can perform better than current management?

[macduffy]

I doubt that the banks or professional receivers have any special retailing expertise!

Receivership would probably result in disposal of the business and its assets in whichever way yields the best result - for the banks - but almost inevitably the end of Postie Plus.