HLG - Hallenstein Glasson

[clip]

imo ........thing that could HELP the most for HLG is if their comopetition closes down as every 4th shop in malls are clothing. But not until those stores clear all stock @ bargain basement prices which all stores will be attempting to do.

I don't believe people will rush out to buy clothes once Covid-19 lockdown is finished probably the last item on my thoughts.

I need some new tshirts, if they are 50% off or more I would buy them. I wouldn't buy them from HLG, I'd buy AS Colour or from culture kings, but surely a regular customer would go shopping again if I would, provided the discount for pent up stock was there.

[Snoopy]

KMD having to do a major cash issue at 50 cents is a very sobering reality check for investors in all retail.
The fact that the legendary guru of retail Rod Duke refused to participate, (despite the bargain basement price), should serve as a warning that he thinks the road ahead is extremely difficult and probably may never have been this challenging since the great depression of the 1930's.

For what its worth, in recent days my intentions have changed and I am not intending to buy back in to HLG until they can prove their business model is viable again.
The bear will determine the bottom price and I don't think we've seen that yet.

I think you are misreading Rod's motivation here Beagle. Rod may have modest debt in his own BGR business. But he does have lease obligations to sort out. And he is probably considering the elasticity in demand for some of his stock lines too. Those non-essential lines might end up as dead stock.

IMO the outlook for clothing retailers is much more straightforward, and in the medium term all the stock will be in the essential category. IMO, the fact that Rod is not supporting a cash issue in KMD is because he is busy putting his own house in order first. It is not a commentary on the medium term strength of the rag trade.

SNOOPY

[kiora]

I think you are misreading Rod's motivation here Beagle. Rod may have modest debt in his own BGR business. But he does have lease obligations to sort out. And he is probably considering the elasticity in demand for some of his stock lines too. Those non-essential lines might end up as dead stock.

IMO the outlook for clothing retailers is much more straightforward, and in the medium term all the stock will be in the essential category. IMO, the fact that Rod is not supporting a cash issue in KMD is because he is busy putting his own house in order first. It is not a commentary on the medium term strength of the rag trade.

SNOOPY

Wise words Snoops
" he is busy putting his own house in order first"
Just as we all should be

[Brain]

Wise words Snoops
" he is busy putting his own house in order first"
Just as we all should be

Yes and that is the problem for retail. It is entirely possible that a significant number of people will be more concerned about reducing their debt and will be less likely to spend their money at the malls. In the long term when the threat has gone and the concern of the virus re-emerging is gone than it will be back to the shops because that is what people do. The devastation of the tourism industry will have a significant effect on retail turnover.

[Filthy]

apparently there should be a GOV announcement out soon (within 48 hours) around rent relief
I assume this will address ADLS clause 27.5 and hopefully clarify what a 'fair portion' is and it might even maybe extend something to older leases which don't carry 27.5 which might help HLG

[winner69]

Covid19 no respect for longevity -

ual leave.

Founded in Adelaide in 1932 R.M.Williams has survived its fair share of crises; it has been through the worst of World War II and has continued to operate ever since. "Now, 88 years later, the Covid-19 crisis has stopped us in our tracks," says R.M.Williams.

Went to that factory once ....awesome place

[dreamcatcher]

Covid-19 empties shopping centres..............

https://www.abc.net.au/news/2020-04-...ction=business

Expecting massive sales when stores finally open trying to entice people to spend with everybody chasing the same dollar..

Currently not on my shopping list as game has become a lot harder now.

[Flugenbear]

Covid-19 empties shopping centres..............

https://www.abc.net.au/news/2020-04-...ction=business

Expecting massive sales when stores finally open trying to entice people to spend with everybody chasing the same dollar..

Currently not on my shopping list as game has become a lot harder now.

Agree dreamcatcher. The next 2 or 3 years could be hell for retailers. I hope HLG survive. Pretty sure they will though might need more capital.

[Balance]

Agree dreamcatcher. The next 2 or 3 years could be hell for retailers. I hope HLG survive. Pretty sure they will though might need more capital.

Would not waste one minute sleep to worry about HLG's survival - along with BGR, two of the strongest consistently performing retailers with very strong balance sheets.

[Beagle]

I think you are misreading Rod's motivation here Beagle. Rod may have modest debt in his own BGR business. But he does have lease obligations to sort out. And he is probably considering the elasticity in demand for some of his stock lines too. Those non-essential lines might end up as dead stock.

IMO the outlook for clothing retailers is much more straightforward, and in the medium term all the stock will be in the essential category. IMO, the fact that Rod is not supporting a cash issue in KMD is because he is busy putting his own house in order first. It is not a commentary on the medium term strength of the rag trade.

SNOOPY

https://www.hallensteins.com/
https://www.glassons.com/

Good call Snoop Dog