Its quite a different sort of product I think and I'm surprised its done as well as it has. Part of the WHS portfolio now ... Provides a bit of scale and diversity - maybe not too much else.
But I mean, can they do more red sheds?
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Why would they sell them when they are integrating the operations into the groups merged operating system (Logistics, warehousing, inventory management, online sales etc - the more brands WHS has using the same integrated system, the more efficient it becomes for the entire group), and when sales for T7 have been performing like this:
https://www.sharetrader.co.nz/blob:h...6-e2911cd8e484https://www.sharetrader.co.nz/blob:h...9-24e297cef996Attachment 12790
I was under the impression from the comms I received while working at Noels that T7 was still in its expansion/growth phase, increasing its NZ footprint, before churning out the sales. Its been an outstanding performer during covid due to everyone wanting leisure activity items, as it was I ordered an E-bike and was told it would be 4-5months due to stock issues. (They actually had to employ a security team to protect stock enroute to NZ as another countries ports i.e. Australia were taking stock designated for NZ and then sussing it out with the supplier.)
Something needs to be done about the supermarkets in this country they a disgrace 400 dollars today for weekly shop it must be up over 25% in the last year, they using covid as excuse to fleece us
Agreed and the draft report of the Commerce Commission's findings agrees too. https://www.msn.com/en-nz/news/natio...?ocid=msedgntp
Interesting times with WHS. I would think they are well positioned with their national store footprint that's ripe for change and rationaliztion.
https://www.nzherald.co.nz/business/...FJXPNAHSUGDYE/
I think the key here is that the duopoly's profits are persistently high. If WHS can consistently make ~ $200m per year for many many years other competitors will be attracted to that sector.
Comm Comm's take is that the incumbents ostensibly act to willfully obstruct other competitors and engage in other anticompetitive activities. Basically they're acting in a contrived manner to bleed Kiwi's dry.
They mention its hard to get site's for suitable sized stores for other competitors. I know one company that's well positioned in that regard ;)