Let me know when you decide to go back in :D
Printable View
My many contacts in retail,wholesale, and company reps, keep me ahead of the field.!!
It is the way I keep myself "well positioned."
Patchy turned to big slow down.Will be a very long unprofitable winter for most retailers.
Margins will be given away for revenue.
Retail can be fickle.For the past 6 years or more I have been very negative on all retail stocks,and for years warned of the Postie Plus disaster.
HLG is very well managed,but when NZ $ goes lower, margins are affected.When retail slows down retailers have to discount to stay in business.And that staying in business for most retailers is a very real struggle. So HLG will need to react to other retailers discounting,or go backwards.
More general I notice the lowering of standards in Malls.More and more $2 type shops,sounds big warning bells to me.
HLG have openned a new flag ship store in central ChCh.With road works and road closures, I have not been bothered to go and look at it.Big lack of parking and parking buildings add to the challenges .From what I read and hear, a lot of ChCh central retailers are going broke very quickly.
Hmmm and the discounting is big. As I said Hallensteins has sent me numerous offers in the last two month including two 45% off everything vouchers. I use those vouchers to buy things with lower margin like shoes. That's some big discounting where they can't be making much.