HLG - Hallenstein Glasson

[mikeybycrikey]

Oh? And why is that?

I've just done on search on the word "Zara" in HLG's annual report, and it looks like they haven't mentioned them as a threat, or in any other context either.

Do annual reports usually call out competitors (and potential competitors) by name? I thought that was usually left as an exercise for the reader.

Zara, H&M and Top Shop are pretty serious threats to HLG. Interesting that they all seem to be coming here at a similar time. Only Auckland for now but that's a pretty significant part of the country.

And maybe physical stores don't matter as much as a decent online presence nowadays.

[sb9]

Zara is a part of Inditex group. The largest apparel clothing retailer in the world.

The didn't become the biggest by selling over-priced crappy clothes.

One more point to note its Spanish owner has recently overtaken Bill Gates as the richest man in world...

Disc: No HLG for me though

[Jantar]

Zara, H&M and Top Shop are pretty serious threats to HLG. Interesting that they all seem to be coming here at a similar time. Only Auckland for now but that's a pretty significant part of the country. ....

OK. Down here in Alexandra there are 3 stores where I can buy clothes. The Warehouse for rubbish, Hallensteins for reasonable quality and price, and where I normally shop, and a single high price store where the quality is not much difference to HLG. So I guess if these other brands are going into Auckland they may have an effect on that market.

How many clothing stores are there in Auckland, and what percentage of them are HLG? After these other brands come in what will HLG's percentage drop to? maybe they will have an effect, but probably not a large enough effect to be worried about.

Incidentally, as far as I am aware, clothing is one thing that doesn't normally sell as well online as other products. People want to try things on and see what they look like.

[see weed]

OK. Down here in Alexandra there are 3 stores where I can buy clothes. The Warehouse for rubbish, Hallensteins for reasonable quality and price, and where I normally shop, and a single high price store where the quality is not much difference to HLG. So I guess if these other brands are going into Auckland they may have an effect on that market.

How many clothing stores are there in Auckland, and what percentage of them are HLG? After these other brands come in what will HLG's percentage drop to? maybe they will have an effect, but probably not a large enough effect to be worried about.

Incidentally, as far as I am aware, clothing is one thing that doesn't normally sell as well online as other products. People want to try things on and see what they look like.

I heard a while back, customers went to shop to try clothes on and then went home and bought them online at a cheaper price. Does HLG have online shopping?

[stoploss]

OK. Down here in Alexandra there are 3 stores where I can buy clothes. The Warehouse for rubbish, Hallensteins for reasonable quality and price, and where I normally shop, and a single high price store where the quality is not much difference to HLG. So I guess if these other brands are going into Auckland they may have an effect on that market.

How many clothing stores are there in Auckland, and what percentage of them are HLG? After these other brands come in what will HLG's percentage drop to? maybe they will have an effect, but probably not a large enough effect to be worried about.

Incidentally, as far as I am aware, clothing is one thing that doesn't normally sell as well online as other products. People want to try things on and see what they look like.

Hi Janter, looks like a few people have pointed out how big Zara is . DJ, Is David Jones and I would think with the buying power they could purchase stock at better terms than HLG . All very well saying all this competition won't hurt , but that's what they said about AIR.NZ .
If you think online shopping isn't a big thing maybe do some research on ASOS.
If the squeeze goes on HLG how long you think they will stay in Alex ? The banks clear 100's of millions a year ..make that billions and they see fit to pull the pin on small-town NZ .

BRANDS INCLUDE:
Australian and New Zealand designers:
Camilla, Camilla and Marc, Manning Cartell, Ginger & Smart, Lover, Kate Sylvester, Sabatini, Trelise Cooper, Twenty Seven Names and Karen Walker
Womenswear:
Jac + Jack, Bassike, Bec & Bridge, Viktoria + Woods, C&M, Tigerlily, Shona Joy, The Upside, C/MEO Collective, Mink Pink, Saba, Anthea Crawford, Studio W and Simone Perele

Menswear:
Polo Ralph Lauren, Tommy Hilfiger, Anthony Squire, Boston, Abelard, Helly Hansen and Hardy Amies
Footwear and Accessories:
Saint Laurent, Valentino, Balenciaga, Alexander McQueen, Chloe, Monica Vinader, Samantha Wills, Wittner and Mimco

[Turtle2]

I heard a while back, customers went to shop to try clothes on and then went home and bought them online at a cheaper price. Does HLG have online shopping?

I use hallensteins online shopping quite a bit. A very good service - and they usually send a chocolate with every purchase.

[percy]

I heard a while back, customers went to shop to try clothes on and then went home and bought them online at a cheaper price. Does HLG have online shopping?

It is called show-rooming.Often people do not even leave a store to order online.!!
Last year HLG online sales were up 24% to achieve 7% of total sales.
So far [1st 6 weeks of current year] they are up 26% on last year.

[Snow Leopard]

I see what people on both sides of the discussion are getting at.

I doubt if the opening of H&M in Auckland on Saturday will see much of a reduction in sales for Hallenstein, Glassons and any other bits of empire. (You can point at the Herald article at the weekend mentioning people queuing down the street to get in at opening if you like).

As other trendy new entrants arrive and expand then yes it may lead to a decline in revenues for HLG. But I am going to go out on a limb here and suggest that they will prosper for a few years. They have survived so far and things do not look dire yet.

Of more importance to their profitability is such things as exchange rates, staying fresh, and having the ability to adapt.

So after a poor year last year and a reasonable entry price then this is probably, hopefully, unexciting source of profits, capital gain and dividends. An investment.

Best Wishes
Paper Tiger

Disc: Generally buy my everyday clothing on the annual Indonesia trip and my technical clothing on my annual UK trip. New sandals where ever the old ones break.

[winner69]

I see what people on both sides of the discussion are getting at.

I doubt if the opening of H&M in Auckland on Saturday will see much of a reduction in sales for Hallenstein, Glassons and any other bits of empire. (You can point at the Herald article at the weekend mentioning people queuing down the street to get in at opening if you like).

As other trendy new entrants arrive and expand then yes it may lead to a decline in revenues for HLG. But I am going to go out on a limb here and suggest that they will prosper for a few years. They have survived so far and things do not look dire yet.

Of more importance to their profitability is such things as exchange rates,staying fresh, and having the ability to adapt.

So after a poor year last year and a reasonable entry price then this is probably, hopefully, unexciting source of profits, capital gain and dividends. An investment.

Best Wishes
Paper Tiger

Disc: Generally buy my everyday clothing on the annual Indonesia trip and my technical clothing on my annual UK trip. New sandals where ever the old ones break.

They been around for 143 years - probably seen plenty of change in that time .....and adapted and stayed fresh

[stoploss]

Zara? DJ? ..... Never heard of them. Do they offer a better quality product at the same price? Do they offer a better quality at a higher price? Are they like the the Warehouse, cheaper, but providing rubbish? Or do they compete directly on quality and price?

If it is the latter and they will compete directly on quality and price, are they going to instantly appear all around the country including the smaller towns where HLG have a presence?

So many factors that may or may not affect HLG that suggest we shouldn't be too worried.

http://www.nzherald.co.nz/business/n...ectid=11719115