I kind of hope not. Warehouse, NL, Torpedo 7, Whs Stationary and a huge online machine, not to mention Finance and Phones. Time to get down to business with what they have.
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I kind of hope not. Warehouse, NL, Torpedo 7, Whs Stationary and a huge online machine, not to mention Finance and Phones. Time to get down to business with what they have.
Retailing industry going through classic consolidation through mergers, acquisitions and plain closures.
Not necessarily a bad thing for WHS to buy Dick Smith, if it can be obtained real cheap.
Farmers getting ready to make its move and Briscoes is ripe for some real competition in its product range, given Warehouse/Farmers combined purchasing power.
Interesting times ahead.
Dicksmith have good store locations IMO, I think that is somewhat of a positive if they can buy it for peanuts:)
They can buy the business for peanuts , but the store locations will come with costly Rent/ leases .Unless these could be negotiated down considerably it makes retail hard to turn a profit from those High st locations .... Hence the number of failures with clothing companies etc recently in retail .
So what would the current leases be worth if nobody buys DS? I would think the Landlords will take much bigger losses short term if DS close shop, wont they?
From my experience of dealing with landlords , in one instance we offered 50 % , of what was over rented . They said no , it was empty 18 months later ....
Most of the properties will be owned by someone like AMP prop trust etc , so they can withstand a period of non rental . But they will be stubborn as to lower the rent sets a dangerous precedent for other tenants ..... If they are good locations as you say someone else will step into the breach and pay market rental ....
Hi guys and gals,
Long time follower, few time poster...
I've held WHS for a few years now, (though thinking of selling at a lost) because I'm coming to be disillusioned with it all, half the stuff they have is crap that only lasts for a week or so (school bag for $20, that lasted 7 school days), shoes that lasted 4! and also, I cant help but think K-mart is better value AND quality, (I'm in Napier, we dont have a Kmart but Hastings do)
Over Christmas looking for toys, i noticed Whs had a racing tracking for $33,..K mart had the exact same one for $17, a toy mouse that moves WHS $29, Kmart $20, among a few other noticeable price difference's
Plus when you walk in Kmart, it is always tidy, clean, WHS, everything is always open, and out of place!!
Ok rant over, heading back to my shell!
Agreed!
I hadn't been to Kmart for 5+ years and the last time I went it was complete junk. But recently a few people have been telling me how it is better than The Warehouse and that you can get some decent quality stuff. So I recently went and was quite impressed, still not a fantastic place, but decent prices, decent quality and best of all it was tidy and it didn't feel like I was in some discount dump store. Quite impressive how they have turned it around.
I sold my WHS last year at a slight loss, but still follow their moves. They have been starting some interesting ventures e.g. finance and mobile services...but every time I go there I walk out wondering why I even bothered going in....