I would not jump to any conculsions.
BGP and HLG online sales are growing at approx. 6 to 8 times their retail stores.
Some young people only buy online.
I myself, with my imperfect body shape, would never buy clothing or shoes online,yet the rest of the family buy most of their clothes online.
A young person I know, who works in London, told me where he works, they have a special room for staff to receive their online purchases.Couriers delivering orders all day long.
Everytime I look to buy something ,like an electric knife,I google the product to compare prices.
The same Sunbeam electric knife varied in price from $39 to $79.99.
I know a clothing store owner who closed his shop last year after 20 years of business. I asked him why and he said because of a growing trend of young people coming into his shop, trying on clothing and then go out and order the exact same item online from overseas !
It is known as "show-rooming".
Most don't even leave the store to do their order.Scan the barcode to make sure they are ordering the right thing.!
I note the likes of Myer in Australia are talking seriously to Mall landlords.Cut the rent by at least 30% or we are gone.
With the demise of RFG and other retailers the mall mix is changing very quickly.
I know a clothing store owner who closed his shop last year after 20 years of business. I asked him why and he said because of a growing trend of young people coming into his shop, trying on clothing and then go out and order the exact same item online from overseas !
Tough for stand alone retailers to be competitive, they simply don't have the buying power so the price difference the young people could get buying online was probably quite significant. HLG committed to providing a first class customer experience at attractive prices are in a nice sweet middle section of the market and as they expand in Australia their economies of scale continue to improve.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
I know a clothing store owner who closed his shop last year after 20 years of business. I asked him why and he said because of a growing trend of young people coming into his shop, trying on clothing and then go out and order the exact same item online from overseas !
Have friends who own a young persons clothing store in Dunedin, they have said they are probably going to have to shut shop for the very same reason. Sad to hear
Have friends who own a young persons clothing store in Dunedin, they have said they are probably going to have to shut shop for the very same reason. Sad to hear
Its all about the price difference and if they leave a gap a mile wide that you can drive a bus through between what you can import it for and what the local retailer sells it for people will do exactly that. As an aside I can't help wondering how many people show room European cars with the exorbitant prices the local distributors want and then parallel import them from the U.K.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
I would not jump to any conculsions.
BGP and HLG online sales are growing at approx. 6 to 8 times their retail stores.
Some young people only buy online.
I myself, with my imperfect body shape, would never buy clothing or shoes online,yet the rest of the family buy most of their clothes online.
A young person I know, who works in London, told me where he works, they have a special room for staff to receive their online purchases.Couriers delivering orders all day long.
Everytime I look to buy something ,like an electric knife,I google the product to compare prices.
The same Sunbeam electric knife varied in price from $39 to $79.99.
Yes I agree, HLG in particular are very strong online and have a great platform. They are also pretty price competitive with any other retailer. You'd struggle to find similar styles to hallensteins cheaper internationally. They have definitely picked slightly more edgy clothes as well recently which are harder to buy elsewhere for a good price.
Very very hard for small retailers. They often charge $50 to $60 for a tee-shirt and people just aren't willing to pay that these days unless its a big brand name.
ROE not everything as markets love the easy way and use PE ratios as a valuation tool. But ROE is a great measure as to how well companies perform and how they generate returns is always interesting.
Table is the ROE components of four listed retailers
Easy to see why HLG and Briscoes have been the best performers of the four over many years
HLG is a pretty high margin business with fantastic Asset Turns (driven from world class stock management resulting in high stock turns’
Interesting that both Briscoes and HLG achieve these superior ROEs with no debt (ie no leverage from debt to increase ROE)
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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Originally Posted by iceman
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