HLG - Hallenstein Glasson

[Jaa]

There seems a clear division in thought between older and younger posters here, with plenty of good points all round. One does need to keep in mind that HLG customers are mostly young(ish) and love shopping online though.

Competition will definitely make HLG a better, sharper operator which will help them in Australia where they have struggled in a more competitive environment. But how would HLG's profits look if you took their Australian margins and applied them to NZ?

Dato Tiger, in the large tropical island where I reside, Uniqlo often has massive displays of jackets and jerseys perfect for the Japanese or NZ market and hopelessly inappropriate for the tropics. So it is true HLG will always have something of a local advantage. Though H&M on the other hand is near unbeatable on price, environmental consciousness and style/practicality.

[percy]

Jaa the big profit in retail fashion is selling something else.You go into the store to buy a pair of trousers,the gifted sales person has just the shirt to go with them,and the jersey and jacket,and with that jacket another shirt goes well with the trousers you are already wearing,giving you really three outfits.And by the way I will sign you up for our loyalty scheme.And here is a Welcome to our store $25 gift voucher you can use at any of our stores next time you require any clothing.Yes you can use it online too.!
Any new shop on the block is going to find it very difficult to attract gifted salespeople away from their existing employer.

[Raz]

Anecdotal - chat from David Jones staff

They not doing that well as they stocking the wrong stuff - they just don't understand what NZ woman want - thinking they just like aussies

Farmers across the road who were going to be smashed doing quite well I'm told

Well they were very busy last Saturday although it is clear they have stock levels wrong..prices high for NZ and many clothes tried on not purchased...however there was one summer dress my daughter wanted at $795 and someone else got the last one..the one on display was fawned over by every second young women passing by however they asked in vain over stock... wife purchased zip as prices higher then D Jones in Melbourne with less variety. Menswear is a joke.

Dodged a bullet thanks to D Jones bad management and had a couple of more beers later given the savings on the family budget:-)

[Subway]

Two points: Just because a company has been trading for 130 odd years, doesn't mean it has a bright future (Kodak anyone...?)

Also, Zara and H&M are international chains that can have current trends in stores within weeks, HLG's current business model works on seasons, if the newcomers can provide in trend well before HLG at the same, or cheaper price point, then yes, people will travel to a Zara/H&M.

http://www.bloomberg.com/news/articl...lothing-giants

[Beagle]

Kodak a very poor analogy in my opinion because that's a complete technology change and with all due respect to the link you provided I think Kiwi's buying patterns are very different to American's.

Someone mentioned a while back the fresh European contemporary styling of the refreshed St Lukes shop of Glassons. I would encourage people to visit that shop to form their own opinion. Its absolutely stunning and both my twenty something daughters were really impressed.

Its exactly this companies ability to adapt and change as well as their well entrenched position in many prime malls throughout N.Z. which will ensure a solid future for HLG.

I'm no fashion hound by any stretch of the imagination but I believe most people head down to their local mall and try clothes on and buy what they like and for this reason the newcomers will have very little effect.

[JeremyALD]

With all due respect an opening is not an everyday occurrence.

Here in the the civilized world we have had all these shops that some of you guys out beyond the Tasman are getting so excited about.

Occasionally a new one opens, they queue to have a look inside and maybe buy something and then it settles down as just another shop, some of which are not turning a profit (location and the Malaysian economy is a little down).

Best Wishes
Paper Tiger

I think topshop is a good example. Everyone was super excited when it opened and queued up, now it's doing well but by no means is taking all the foot traffic from queens street retail. In fact sometimes it's pretty quiet too.

The fact is Sylvia Park is miles away from a lot of Auckland. They'd have to be bloody good to get people to drive all the way out from areas such as West Auckland and North Shore to even consider the trip. Men's clothes are much of a muchness to I might add.

[Sideshow Bob]

I suspect the Kodak analogy from Subway was about not knowing the market. Kodak invented the digital camera - and thought no one would want them. In the end was a large part in killing them.

There is undoubtedly examples of retailers entering new markets and getting things wrong. I would suspect that the likes of Zara and H&M are so successful internationally because they can adapt to various markets.

My thoughts would be more retailers, international players with sophisticated supply chains and latest fashions will undoubtedly have a negative effect on incumbents. But may also be the opportunity for HGL to raise its game further and take utilise it's entrenched position and deeper local knowledge.

[winner69]

Anybody been in a Postie+ or a t&t store lately (lots of them around)

Both have been able to adapt to market changes over the years and seem to be doing quite well these days ............. (although Postie+ needed a shining knight to sort them out a few years ago but as in Bob's words they utilised its entrenched position and deeper local knowledge)

[winner69]

According to Stats NZ the clothing and footwear retail sector in NZ is a $3.5 billion market. No doubt the targeted market segment for H&m etc which is 'fast fashion' is smaller

HLG Group NZ sales are about $180m - only 5% overall market share (they do sell shoes I think?)

So H&M and others will be coming from many players in the market - and remember the pie is likely to get bigger

[boysy]

Winner69 the examples you have given are mere shells of what they once were. I just cannot fathom why buyers would choose HLG when other options are better in every respect (price,style,sizing etc). Its simply disingeniuos to try and write off competition in light of their intent to aggressively expand into HLG patch. I think sometimes there is a serious disconnect between what companies investors invest in and those products those companies use. With HLG being a divi play any competition will start to impact margins and level of profitability i wouldn't be so sure the divi yield can be kept up, but hey when it starts going down that higher and higher divi yield will be mentioned time and time again (not the ongoing likelihood of maintaining this divi ).

Who on this thread would continue to shop at HLG instead of the competitors (assuming they had the option to shop at H&M, Zara etc) and what would be the rational this is an important question ?