WHS - Warehouse Group

[BlackPeter]

I finally sold out of WHS a few months back (at a loss) despite spending lots on refurbishing stores they still looked the same to me and the headers on the aisles are confusing. I also don't think they make enough noise about being one of the best payers of staff in the retail sector.

I don't think the fact that they are overpaying mediocre staff is an argument to buy there. If their staff would be deserving of their higher salaries than the shopping experience should sell itself ...

Just imagine - highly motivated, competent, caring and customer focused salespeople in the warehouse - wouldn't it be wunderbar?

Overpaying mediocre staff is the dumbest HR mistake anybody can make ... its not even a fun way to bring a company to its knees.

[tim23]

I don't think the fact that they are overpaying mediocre staff is an argument to buy there. If their staff would be deserving of their higher salaries than the shopping experience should sell itself ...

Just imagine - highly motivated, competent, caring and customer focused salespeople in the warehouse - wouldn't it be wunderbar?

Overpaying mediocre staff is the dumbest HR mistake anybody can make ... its not even a fun way to bring a company to its knees.

Fair comment - but shoppers may feel more inclined to shop there if they are paying more than say Mitre 10 or Briscoes?

[Nasi Goreng]

In my experience, the service levels at the warehouse have improved somewhat in the last few years. I see people around the store who are often happy to walk me to a product if I ask them for help locating something. Now my experience in Bunnings, Mitre 10, Rebel and Briscoes is very different. There I find it hard to find someone working, and if I do ask for help, they will point me in the direction of where it might be and get on with what they are doing.

I've been involved with upskilling the retail sector, improving service levels and customer experience. There is a real gap and opportunity for any who get this right... I tip my hat to the warehouse for at least trying and while they have a long way to go, there has been a notable shift since they introduced this a few years back. It may be different around the country but I feel I've been to enough of those stores to feel like I can comment here.

[percy]

At WHS Barrington there is no service.None,Zero.
Mitre 10 Beckenham, and Bunnings Tower Junction, the service is excellent.
Briscoes Salisbury street ,and Riccarton the service is OK.
Rebel Sports I can not comment, as I do not shop there.

[ratkin]

At WHS Barrington there is no service.None,Zero.
Mitre 10 Beckenham, and Bunnings Tower Junction, the service is excellent.
Briscoes Salisbury street ,and Riccarton the service is OK.
Rebel Sports I can not comment, as I do not shop there.

Am I the only one who likes no service. Hate shops where staff are pestering you. Smith city always very bad, they all hunting for customer commission.
Love rebel sport because no service at all. Can sit there and try on Twenty pairs of running shoes with no interruption. If there is service in the warehouse it is likely because there are not enough customers, and staff are all bored.

[winner69]

Warehouse Group sales on fire ...booming ...and profits 10% better than though (guidance)

Looks like the big bonuses to the senior management will be paid ......even though profits down 15% on last year. Probably would have gone broke if not incentivised those guys so all honky dory

Paid far too much for Torpedo 7 a few years ago...now writing off the $25m goodwill

http://nzx-prod-s7fsd7f98s.s3-websit...116/285829.pdf

[RTM]

Warehouse Group sales on fire ...booming ...and profits 10% better than though (guidance)

Looks like the big bonuses to the senior management will be paid ......even though profits down 15% on last year. Probably would have gone broke if not incentivised those guys so all honky dory

Paid far too much for Torpedo 7 a few years ago...now writing off the $25m goodwill

http://nzx-prod-s7fsd7f98s.s3-websit...116/285829.pdf

Hope the folk shopping there are leaving enough in the bank for their vehicle replacement at Turner’s!

[Gisborne Grumbler]

Although it's "adjusted profit" which can of course cover all manner of sins. They "adjusted" $2.3m out of 1H, and will also adjust for goodwill write down of $25.6m, so a total of $27.9m to be 'adjusted'. Reported NPAT would be c. $30.85m vs FY17 $70.7m, just a trifling 56% below last year. Smoke and mirrors. It's caused by a goodwill right down of T7 - "an investment in a store expansion programme, no longer support the goodwill valuation associated with the original acquisition". Which must mean that the stores aren't generating expected sufficient future cashflow to cover the goodwill and yet the strategy remains to expand the physical retail presence?? Makes perfect (non)sense and is definitely worth paying the full bonus for. Of course.

https://www.nzx.com/announcements/323104

Per the 2017 Annual Report:
"The recoverable amount of the Torpedo7 CGU exceeded its carrying amountby $5.683 million. The cash flow projections in the Torpedo7 model assumes an average annual growth rate in sales of 7.6% and an increase in grossmargins from 24% to 28% over the 5 year projection period."

19 stores in the network + online were expected to generate $31.3m cash flow over 5 years, one year later zero? In which case either the cost of the move to Auckland from Hamilton sucks up all cash flow generated by the stores, or the stores are unprofitable in which case where is the asset write down for the stores also?

Smoke and mirrors.

[bull....]

Although it's "adjusted profit" which can of course cover all manner of sins. They "adjusted" $2.3m out of 1H, and will also adjust for goodwill write down of $25.6m, so a total of $27.9m to be 'adjusted'. Reported NPAT would be c. $30.85m vs FY17 $70.7m, just a trifling 56% below last year. Smoke and mirrors. It's caused by a goodwill right down of T7 - "an investment in a store expansion programme, no longer support the goodwill valuation associated with the original acquisition". Which must mean that the stores aren't generating expected sufficient future cashflow to cover the goodwill and yet the strategy remains to expand the physical retail presence?? Makes perfect (non)sense and is definitely worth paying the full bonus for. Of course.

https://www.nzx.com/announcements/323104

Per the 2017 Annual Report:
"The recoverable amount of the Torpedo7 CGU exceeded its carrying amountby $5.683 million. The cash flow projections in the Torpedo7 model assumes an average annual growth rate in sales of 7.6% and an increase in grossmargins from 24% to 28% over the 5 year projection period."

19 stores in the network + online were expected to generate $31.3m cash flow over 5 years, one year later zero? In which case either the cost of the move to Auckland from Hamilton sucks up all cash flow generated by the stores, or the stores are unprofitable in which case where is the asset write down for the stores also?

Smoke and mirrors.

makes perfect sense to me , and a sensible move at that.

By bringing the new categories into the wider group will allow the existing useless categories to be removed , the new categories will take up the space created so keeping the existing stores space full.

im thinking eventually a warehouse that contains red shed , stationary , t7 and no1 fitness all under the same roof , eliminate poor performing stores as leases expire and reduce staff costs not only from underperforming stores but from bringing all brands under the one roof.

ive brought online from n01 fitness in the past , it was a bit of a risk as most people who buy fitness equipment like to try before buy so having a bigger presence in store will improve sales alot i believe.

[steveb]

There is one small problem with bringing all the different stores under one roof is the similarity in some of the products WHS sell stationary likewise clothes and electrical goods (if you bring Noel Leeming in to the mix).I was in Farmers last weekend which had a Stevens store inside,I found what I was looking for in Stevens,but then found a similar item in the Farmers side,duplicating product in the same store never works.