Maybe had SCY followed Gerry Harvey's "franchise" model, 20 years ago, they would be "well positioned" for anything today.
Certainly shareholders would have benefitted.
Printable View
Noticed an Advert. From Smith City today ( In passing . Not looking ).
78% off RRP.. Really ???
Disc. Not a holder
Oh dear.!!!!!!!!!!!!!!!!!!!!!
http://nzx-prod-s7fsd7f98s.s3-websit...845/277807.pdf
That’s a huge drop in revenues
Not big enough to be ‘big’ and will continue to struggle
Not surprised are we Percy
Alan Martin will be turning in his grave that his beloved Ngauranga store has closed down.
Unfortunately "no surprises there".
The long tail of lease commitments, for underperforming stores does not go away until their leases expire.Three years into a six year lease means another three years of pain.In SCY's case a $4.8mil store lease impairment provision is equal to about three years net profit.A very long time to work for nothing.
Then there will be store closures,with redundancies and other costs.?
Then landlords will find out the true rental value of their properties,knowing full well if Smiths City can not make the site work,who can?.
I see the number of empty retail stores around the country growing quickly over the next couple of years.
Craig Boyce would not be to happy either.
Never sell Colombo Street store.Core................Sold.
Must offer full service.Core....................Alectra sold/closed.
Gerry Harvey,JBHiFi,and I expect Leemings all face huge challenges.The amount of space they require for their stores means large rent commitments,the logistics of freighting large items,staffing,and advertising costs mean very slim margins.
Looking at their business models it is easy to understand why I love LOV.
The exit door for shareholders appears to be closing.