HLG - Hallenstein Glasson

**percy** · 31-03-2019, 07:21 PM

No no no HLG can't have their customers pay more..

Best to reduce the divie...lol.

One of the main reasons I sold out of Smiths City years ago was because of their rising wage bill.Not funny for a retailer who employs a lot of people,longer holidays,higher hourly rates,kiwi saver contributions.
In the book trade "wages" amounted to approx 12% of turnover.With the above, together with longer shop opening hours, "wages" are now approx 17% of revenue,while rent has increased from approx 12% to 19% plus..

**winner69** · 31-03-2019, 07:48 PM

Originally Posted by Beagle

Interesting article. https://www.nzherald.co.nz/business/...ectid=12216869 I imagine a lot of retailers like HLG will also have to follow suit and increase prices.

Last years wage bill was $51m including the grossly overpaid fat cats so minimum wage increase should have little impact

They run like a well oiled machine anyway

**percy** · 31-03-2019, 08:18 PM

Originally Posted by winner69

Last years wage bill was $51m including the grossly overpaid fat cats so minimum wage increase should have little impact

They run like a well oiled machine anyway

Expensive oil,
$51mil is 18.34% of their $278mil revenue.

**LAC** · 31-03-2019, 08:44 PM

Hopefully online sales grows faster, that would/should be a cheaper method of moving product.

**winner69** · 31-03-2019, 08:49 PM

Originally Posted by percy

Expensive oil,
$51mil is 18.34% of their $278mil revenue.

The well oiled machine buying more and more stock as well ....stock turns down

**percy** · 31-03-2019, 08:53 PM

Originally Posted by LAC

Hopefully online sales grows faster, that would/should be a cheaper method of moving product.

Certainly is.
HLG have grown their online sales very well.I think they now account for 16% of revenue.

**couta1** · 31-03-2019, 08:59 PM

The more negative talk the better, whatever it takes to enable me to pick up some more dirt cheap shares.Lol

**percy** · 31-03-2019, 09:01 PM

Originally Posted by winner69

The well oiled machine buying more and more stock as well ....stock turns down

It is not easy out there.
It looks to me as though "young' Glasson is a tremendous retailer, who is driving Glassons Australia very well.
However things can turn to custard very quickly in retail.Get one season's colours,or styles wrong and you are "challenged".
Expanding their retail footprint quickly in Australia increases their risks.Rents,leases are ongoing huge liabilities.