WHS - Warehouse Group

[IAK]

Bit like having an old Labrador that sits on the couch with you that every six months coughs up $800 for every 10,000 shares you own. As long as he keeps that trick up I don't care if he doesn't learn any new ones.

Only problem is when old yella develops diabetes, hip displasia, and heart disease and winds up costing you $8000+ in veterinarian bills.

[Beagle]

Only problem is when old yella develops diabetes, hip displasia, and heart disease and winds up costing you $8000+ in veterinarian bills.

$1.200 Vet bill sitting there as the one and only red mark on my portfolio at present. Hope the dog recovers soon Hope I'm not leading the pack on a goose chase.

[Biscuit]

$1.200 Vet bill sitting there as the one and only red mark on my portfolio at present. Hope the dog recovers soon Hope I'm not leading the pack on a goose chase.

The pack, I suspect, are mostly a motley collection of skeptics and chancers, taking a punt for the fun of it at this stage. Last time I looked, I was down about $80. I expect we will flush something of value out at some stage.

[Beagle]

https://www.nzherald.co.nz/business/...ectid=12350355 Our resident cat opines.

[winner69]

https://www.nzherald.co.nz/business/...ectid=12350355 Our resident cat opines.

Doesn’t seem too impressed with them

Hey beagle - they need to fix this bit -

That means for every $1 a customer spends in store, 2.1c goes to the company and its shareholders. Another 17c goes to staff as wages and salaries.

[Beagle]

In a good year AIR's profit was about 8% of sales so you're right, a 2.1% margin is only a quarter of what airlines with their notoriously skinny margins make !

Higher exchange rate will help but it obvious they really did need to push through these reforms as that net margin is wafer thin.

[Cyclical]

That means for every $1 a customer spends in store, 2.1c goes to the company and its shareholders. Another 17c goes to staff as wages and salaries.

In a good year AIR's profit was about 8% of sales so you're right, a 2.1% margin is only a quarter of what airlines with their notoriously skinny margins make !

Higher exchange rate will help but it obvious they really did need to push through these reforms as that net margin is wafer thin.

Yeah, that is certainly a bit too tight for comfort. Companies like this must really cringe when minimum wages go up, and in that respect, it's no surprise they've had to do a little culling. No wonder they were keen to let everyone know the doors would remain open during lockdown.

[ratkin]

Yeah, that is certainly a bit too tight for comfort. Companies like this must really cringe when minimum wages go up, and in that respect, it's no surprise they've had to do a little culling. No wonder they were keen to let everyone know the doors would remain open during lockdown.

They will just add lots of automated tills, and have a few security guards keeping watch.

[percy]

Doesn’t seem too impressed with them

Hey beagle - they need to fix this bit -

That means for every $1 a customer spends in store, 2.1c goes to the company and its shareholders. Another 17c goes to staff as wages and salaries.

17% of revenue for staff wages and salaries.?
I take it your figures are correct.However,I find that figure well above what I would think it should be.
My best guess would be around 12% at the most.As per Ratkin's post,self service should be able to reduce these wage costs to under 10%.KMart seems to made self service work.
Although you have not quoted occupancy costs I would expect them to be also well under 12%,if fact possibly under 10%.
I would guess their [whs] average sale would be well over $30,which makes me think they have a lot of issues to resolve.
There also appears to be big savings to be made in their logistics,as we already know their online overheads are also too high.
Low margins on very high revenue can be profitable, as the likes of McDonalds and Pak 'n Save have proved.
Staff and logistics to meet varying demand.ie daily, even hourly.

[Zaphod]

Yeah, that is certainly a bit too tight for comfort. Companies like this must really cringe when minimum wages go up, and in that respect, it's no surprise they've had to do a little culling. No wonder they were keen to let everyone know the doors would remain open during lockdown.

Yes definitely does. Not only do the direct costs increase (salary and wages) but so does freight, wholesale purchase costs etc. It causes an avalanche of increases, and because of the timing of the minimum wage increases, means that some suppliers are increasing their costs multiple times per year on a continues basis since Labour's policy kicked in. Many entry level WHS staff are on the living wage which is currently $22.10. Obviously everyone above that also has their hand out,

The consumer is very unforgiving about these necessary price rises.