WHS - Warehouse Group

**Beagle** · 24-07-2017, 02:51 PM

Originally Posted by percy

So does The Warehouse customer base take SBS upmarket or down market.?

Not sure but I am very pleased that Heartland bank didn't buy it, what amounts to perhaps a "hospital pass". All those losses must be there for a reason(s), not solely because of lack of scale.

**winner69** · 24-07-2017, 03:02 PM

They retain Diners Club NZ

What does that imply?

**trader_jackson** · 24-07-2017, 03:03 PM

Originally Posted by trader_jackson

Finance unit being sold off in a fire sale to Flexigroup?

I'm sure this isn't it, but given WHS has struggled to get their financial divisions going (impaired last results announcement), could be viewed as a positive thing they get rid of it before it continues to drag on them

Well I was right about the fire sale of the finance unit... carry on

**percy** · 24-07-2017, 03:12 PM

Originally Posted by Beagle

Not sure but I am very pleased that Heartland bank didn't buy it, what amounts to perhaps a "hospital pass". All those losses must be there for a reason(s), not solely because of lack of scale.

Exactly........

**winner69** · 24-07-2017, 03:15 PM

There was a guy from House of Travel on the radio this morning. He said that for his company to thrive in this world of disruption they need to disrupt themselves. (Self disrupt, like partnering with disruptor Airbnb).

Warehouse thinking on the other hand seems to be how do we self destruct.

**Beagle** · 24-07-2017, 03:38 PM

Originally Posted by winner69

There was a guy from House of Travel on the radio this morning. He said that for his company to thrive in this world of disruption they need to disrupt themselves. (Self disrupt, like partnering with disruptor Airbnb).

Warehouse thinking on the other hand seems to be how do we self destruct.

Self destruct if they like but I'm not sure this is really fixable because the core issue seems to be if you're a high quality brand its best not to tarnish your brand by being associated with what is ostensibly a down-market retailer...the exception is Noel Leeming because the average Joe Bloggs doesn't know its owned by the Warehouse. You can't make a silk purse out of a sow's ear no matter how hard you try but you can be sure management and directors will try every which way they can to do exactly that, probably all to no avail. Tough few years ahead for shareholders in my opinion. AVOID ! Better off in HLG, BGR or KMD I reckon.

**huxley** · 24-07-2017, 04:12 PM

Selling off the underperforming financial services business seems like a step in the right direction..I mean what was the point of deploying that capital just so you could be a customer's 5th choice of credit card or insurance provider?!

I don't really think the customer proposition ever really stacked up.

There probably is a viable - market leading- business model somewhere in WHS. They really need to keep simplifying the business and focus on core areas where they can win, similar to the likes of K-mart etc. Good luck to any holders, I predict lots of competition in their space in the future

**kiwico** · 24-07-2017, 04:34 PM

As a Warehouse Money cardholder I saw it solely as a discount card when buying something like a cheap pair of wellies. [the spellchecker tried to change that into something else....]

A 5% discount most of the time, a 10% discount some of the time and occasionally a 20% discount, especially around Christmas. They certainly won't have made anything from a Warehouse Money cardholder that pays their card off in full each month.