WHS - Warehouse Group

[percy]

I do agree with you about Rod Duke and Tim Glasson being exceptional retailers. However I would tend to class these two as middle market retailers rather than upmarket. There are plenty of middle market retailers out there not doing so well. Pumpkin Patch? Smiths City?

SNOOPY

Pumpkin Patch have lost the plot.God knows if they will survive and in what form.Smiths City is extremly well run business.The board is excellent,and CEO Rick Hellings is a brilliant retailer.I believe they are trading well in a difficult market.Leemings/Bond and Bond,are not.JBHF are still loosing millions in NZ operation.SCY own their own finance company,while the others use GE Money.Not sure how Harvey Norman are doing.Very difficult business to understand as they are a franchise operation.In Moorhouse Ave store there were 3 or 4 different fanchises,beds,furniture ,electrical.etc
SCY.Directors,and Hellings have large shareholdings.

[emearg]

Have just posted the annual revenue figures for HLG, and vey impressive they are too.

Ballantynes is not a listed company. But the Wellington equivalent, Kirkaldie and Staines (KRK) is listed. Here are their retail sales figures for the five years up to this one:

Is Kirks like Ballantynes? I think Kirks is very upmarket and Ballantynes is mid to high? Sadly many of Kirks target market has passed away which may be behind the reducing revenue figures? My Grandmother is of the generation that loved Kirks. Flocked to their sales. But sadly she is too old to go anymore, and most of her peers have passed away.

Everytime I pop into Kirks I am disappointed by their snotty staff and overpriced offerings. I prefer to shop at places like Living and Giving. Nice offerings and you don't require lube...

[h2so4]

I would phrase that

"In this case the NZRU gross margin is 10% and WHS gross margin is 1%"

The management accounting term 'margin' means a different thing, which is why this kind of confusion can easily arise.

SNOOPY

I'm pretty sure that in your example there were no other costs or taxes to be deducted. Therefore gross margin and margin will be the same.

How long has NZ been like this?

[Lizard]

I think the "main shopper" in a family has an advantage in retail investment - for me, shopping is a chore that I undertake with methodical diligence.

It is no surprise to me that Pumpkin Patch sales fell (my kids announced that they were not going in "there" any more), nor that Glassons were doing rather well (half of their allowance seemed to end up there)... I know that Briscoes has had my trade for a few years in sheets, towels and wine glasses (though am pretty sure they could do better, given the number of times I walk out of there empty-handed!). Not surprised when supermarket spending fell (it reaches a point where we're all prepared to shop around for the best deals when food starts taking up 40% of the weeks pay!). Kirks - a good formula that is going down-market to capture the next generation... witness the men's wool perma-crease trousers... same brand, 10 years, maybe a 10% price increase? Cufflinks are back "in". Christmas shop - every year of course (though I think they are starting to cut corners!). Ballentynes? Well I have to admit they used to be rather the thing - amazing values to stay closed on a Sunday and miss out on the mall trade...God help them. I'm afraid it's mostly Farmer's these days for the mid-life woman on a budget. The Warehouse - well its time is coming.... I've been in there a little more frequently of late and the customer service has made a marginal improvement...hey, the price is even getting closer to the $2.40 which might pique my interest...

Disclaimer: Consult your Retail Therapist before investing in retail stocks of any kind...

[percy]

Lizard,
You have really let the team down>>>>!!!!!!!!
You can shop 24/7 at Ballantynes thanks to their wonderful web site,run by our good friends estaronline.com who also do Briscoes.
You will be pleased to know the MD is Mary Devine who ran Ezibuy,another estar customer.
www.ballantynes.com

[winner69]

I'm afraid it's mostly Farmer's these days ...

Farmers ain't too bad these days .... picked up a neat Norsewood jersey the other day with 30% off bringing it doen to $60 odd .... maybe a bit more expensive than Postie eh Percy but a nice jersey all the same

[percy]

Farmers ain't too bad these days .... picked up a neat Norsewood jersey the other day with 30% off bringing it doen to $60 odd .... maybe a bit more expensive than Postie eh Percy but a nice jersey all the same

Well I like Farmers too.Brought a couple of cheap jerseys from Postie Plus.They are OK but will look to The Farmers to replace the rubbish one I paid over $60 from Swanndri.Fluffed up after hardly been worn.

[winner69]

But the real fun is with Mitre 10 Mega,and Bunnings.Let's not forget Bunnings sales of $585mil for a NPAT of $2mil.Now $2mil profit would depend on how you did your stocktake.!!!!!!!

Percy you cynic - Bunnings wouldn't adjust stock figures.... just like Heartland wouldn't conveniently understate their impairement provision or change the discount rate used to value financial instruments ... they wouldn't would they!!!!!!!!!

[percy]

Percy you cynic - Bunnings wouldn't adjust stock figures.... just like Heartland wouldn't conveniently understate their impairement provision or change the discount rate used to value financial instruments ... they wouldn't would they!!!!!!!!!

No,I was pointing out that with such small profit margin it would not take much to turn $2mil profit into a loss.Stocktake,shrinkage,higher rent,insurance increase. etc.$11.25 mil turnover everyweek for $38,410 profit a week.?? No room to move.Why bother for .003%.?wouldn't want Bank to increase bank fees.
Back to stocktake.No one can be 100%,so again $2mil is neither here nor there,but with a net profit of only $2mil it is certainly here.!!

[Snoopy]

Snoopy wrote:
I would phrase that

"In this case the NZRU gross margin is 10% and WHS gross margin is 1%"

The management accounting term 'margin' means a different thing, which is why this kind of confusion can easily arise.

SSD replied:
I'm pretty sure that in your example there were no other costs or taxes to be deducted. Therefore gross margin and margin will be the same.

Glad to see someone is awake SSD. There were no other costs or taxes to be deducted as you observed. So I should have used the term 'net margin', not 'gross margin'.

However I obviously wasn't clear enough in my long winded explanation (post 1074 in this thread). There are three margin terms I was talking about:

1/ Gross Margin
2/ Net Margin
3/ Margin (which I have renamed 'Management Accounting Margin' to avoid confusion with the other two).

'Margin' in management discussion terms, which is what this forum is all about, means definition number 3 if there is no further qualification given. Go back and read that post 1074 with this in mind (I have made bold the important bit) and it should make more sense.

SNOOPY