WHS - Warehouse Group

[Rep]

I had the gas struts on my kitchen cupboard doors give up the ghost and wandered down to the hardware store to get replacements. After looking at options I went online and bought four units that will be straight swaps for about a quarter of the price of something that I will have to install as they aren’t straight swaps - landed cost from Amazon USA at NZ$37.25 incl freight.

Don’t get me started on shoes, kids clothes, books and nursery items.

More choice. Better price. And GST wouldn’t have made any difference to who I make purchase.

[Beagle]

No worries mate, I prefer the blunt way rather "oh well mistakes happens".
Would you mind sharing your criteria for selling? Not trying to imitate but to think how much still I need to learn.

Just noticed your post. I have never been a shareholder in WHS. This business has been in systemic decline for years. Prior to that the PE was too high.

[winner69]

When it comes to messes, there arent many able to compete with Myer. IPOd at $4.10 is now 55 cents. They have continually destroyed shareholder value and none of their businesses are performing. Have you read their announcement? It's as bleak as they come.

I'd say the WHS is a much better business, but that's not saying a lot

Myer CEO and our Nick talk the same language and use words like omnichannel, consumer intimacy etc and both are convinced their strategy is working and they are on the path to transformation success or something. It sort of makes me wonder if WHS going doen the same route as Myer ...with much the same result

WHS shareprice hanging in over 2 bucks .....go below that could be interesting ....might set off a sell off and put it where some would say it rightly should be

[winner69]

The 2 bucks held, just. Go under 2 bucks and the share price might go into free fall ...who knows

We may as well follow the Myer train wreck. Same strategy as WHS and the CEO's talk the same lingo. Whoops it's now the ex CEO of Myer as he was sacked today for taking too long to right the ship. Maybe our Nick is for the the high jump as well?

http://www.smh.com.au/business/retai...14-p4z0ad.html


The article mentions a burdensome operating lease commitment of $2.7 billion spread out over 30 years. Warehouse Group has much the same problem with $740m in operating lease commitments

Hope like hell the share price stays over 2 bucks

[winner69]

Big week for Nick as he prepares for his Strategy Update on Thursday. Half year results as well but we already know they are pretty shockingly the focus will be on the all important ‘strategy’

Nick fine honing his slides. Hope he’s come up with some new phrases and buzzwords ... ‘ new rules of retail’, ‘evolve’, ‘platform’, ‘transformational’, ‘counter factual’ have been used too much ...he needs to refresh the lingo.

The strategy bit better be good but I think the market is also looking for a pretty good full year forecast number.

Share price just hanging in there above 2 bucks ....I think Nick knows that if it breaks below that 2 bucks it’s all downhill.

Thursday will be interesting.

[Balance]

Big week for Nick as he prepares for his Strategy Update on Thursday. Half year results as well but we already know they are pretty shockingly the focus will be on the all important ‘strategy’

Nick fine honing his slides. Hope he’s come up with some new phrases and buzzwords ... ‘ new rules of retail’, ‘evolve’, ‘platform’, ‘transformational’, ‘counter factual’ have been used too much ...he needs to refresh the lingo.

The strategy bit better be good but I think the market is also looking for a pretty good full year forecast number.

Share price just hanging in there above 2 bucks ....I think Nick knows that if it breaks below that 2 bucks it’s all downhill.

Thursday will be interesting.

Spent a few dollars at The Warehouse over the weekend - some stuff for the room. Decent quality and design, reasonably priced so happy to buy.

Can't help though but notice the amount of space taken up by the sunset product businesses - books, DVDs, music and toys.

I can't see how Warehouse is going to be able to box itsway out of the horrendous leases they have around the country from the salev and leaseback deals they have done on their properties.

You can only sell properties for so long and the Warehouse is NOT a property company!

[Beagle]

What's the bet Balance that a lot of investors who have bought those Warehouse buildings in due course will have a white / red ? elephant on their hands as the company gradually rationalizes its retail footprint going forward by not renewing many of the leases in due course.

[whatsup]

What's the bet Balance that a lot of investors who have bought those Warehouse buildings in due course will have a white / red ? elephant on their hands as the company gradually rationalizes its retail footprint going forward by not renewing many of the leases in due course.

Yeh, during the 90's 2000's and to date the warehouse destroyed hundreds of Mums & Dads small businesses through out N Z and now its happening to them, Stephen reflect of their history because you and your s hers are next, enjoy !

[Beagle]

Yeh, during the 90's 2000's and to date the warehouse destroyed hundreds of Mums & Dads small businesses through out N Z and now its happening to them, Stephen reflect of their history because you and your s hers are next, enjoy !

All the proof you need that what goes around comes around ? Karma ?

[Balance]

What's the bet Balance that a lot of investors who have bought those Warehouse buildings in due course will have a white / red ? elephant on their hands as the company gradually rationalizes its retail footprint going forward by not renewing many of the leases in due course.

I think that is a given.

The Warehouse knows its heydays are well and truly over and its strategy of having a warehouse within 20 mins of everyone is also over. Matter of deciding which one to close when the lease periods are finished.

An idea of how deep The Warehouse has dug itself in the situation :

Lease commitments :

2017 $739m
2010 $180m

Lease commitment for next year :

2017 $120m
2010 $52.7m

WHS has effectively been paying dividends from selling its future profitability.

Who wants to invest in a company like that!