WHS - Warehouse Group

[ratkin]

For what it's worth Morningstar have raised their recommendation to accumulate with a price target of $3.40 (maintaing previous price target).

They just keep the same price, so all stocks that have gone up ( the good ones) are downgraded, while those that have gone down (the bad ones) are upgraded.

The price targets themselves are often completely unrealistic, and totally out of line with common sense.as an asb securities customer i find it annoying that they are the chosen soirce for company research

[ratkin]

just wondering how you measure this to see if its working.
The Warehouse move to pay staff a "career retailer wage" has not paid off yet, but the retailer says the early signs are promising.
The company rolled out the policy last year which boosted the wage of trained staff, who had logged enough hours at work, to between $18 and $20 an hour.
Warehouse chief executive Mark Powell said said the higher wages cost the company $6 million a year, with 63 per cent of permanent staff now earning at least $18 an hour - well above the legal minimum of $14.25.

In an ideal world all the low paid workers in NZ would respond by doing all their shopping at the warehouse, thus putting pressure on other employers to follow suit. Of course in the fragmented world we now live in there is no longer any solidarity between low paid groups

[BlackPeter]

just wondering how you measure this to see if its working.
The Warehouse move to pay staff a "career retailer wage" has not paid off yet, but the retailer says the early signs are promising.
The company rolled out the policy last year which boosted the wage of trained staff, who had logged enough hours at work, to between $18 and $20 an hour.
Warehouse chief executive Mark Powell said said the higher wages cost the company $6 million a year, with 63 per cent of permanent staff now earning at least $18 an hour - well above the legal minimum of $14.25.

Obviously difficult to separate the pay rises from other factors, but here are some ideas how the warehouse could monitor the effectiveness of their payroll policies:
1) Customer satisfaction: Take 3 monthly surveys (using e.g. NPS methodology) - are there any statistically relevant improvements following the pay rises?
2) Staff satisfaction surveys: Is staff engagement rising and staff turnover dropping?
3) Operational measurements: Is net profit per staff member increasing?

Number 3 is easy to measure - just look into the latest annual report and do the numbers (I didn't, but the numbers can't be good, given the annual result).
Not sure about number 2 (they may or may not do that).
Re number 1: I know from personal experience that they do customer satisfaction surveys, however not sure who advised them to use the method they do. The surveys are not random, but require customers to contact them (based on info on the receipt) . They are as well quite time consuming and becoming quite early very intrusive (particularly if you agree they may come back to you). I am pretty sure that most people just won't bother, which means that the statistical value of these surveys is unfortunately quite questionable. Great example for how you can pile up huge heaps of absolutely irrelevant data.

[winner69]

So Mr Powell leaving this year. Job done he says

Do I sense another strategic change when another globally recognised retail guru comes on board?

[bull....]

10mths to find someone, means easily 2 yrs in limbo

[winner69]

'There will always be speculation but I am leaving on my terms'

Mark hasn't done to bad ......shareprice was 363 when he took over and as Birman will remind us divies would have even more then the capital loss (just)

But 10 months to go

[percy]

Funny how life works out.
NZ was full of high price retail stores with big overheads.
Along came The Warehouse with low cost premises,small staff numbers,low cost distribution,offering NZders the opportunity to buy reasonably priced merchandise.Today The Warehouse has loaded it self up with all the high overheads it can.
Leaves the door open for a low cost online competitor?

[Biscuit]

Funny how life works out.

Leaves the door open for a low cost online competitor?

I think that is already part of their problem. Aren't they already caught between Trademe at the bottom end and retailers without the WHS budget brand baggage above them?

[BIRMANBOY]

w69....I know you are a follower of the James Bond posting theory...stirred not shaken, but any self-respecting WHS shareholder will have seen the SP go up and down and would therefore be a "mug" to consider selling when the SP was low. BUY-BUY would be a good thing to consider now. Strong consistent dividend deliverer and buying at low points like today will enhance your yield over the years. I can see a few sitting well in the W69 portfolio..

'There will always be speculation but I am leaving on my terms'

Mark hasn't done to bad ......shareprice was 363 when he took over and as Birman will remind us divies would have even more then the capital loss (just)

But 10 months to go

[BIRMANBOY]

Pardon me but what planet are you from Sir? What would lead you to believe that any change of leadership will create lethargy? Usually a new leader means a big drive forward with new "improved" policies and the leadership imperative of making yourself appear to be the newfound messiah.... Limbo very doubtful.

10mths to find someone, means easily 2 yrs in limbo