WHS - Warehouse Group

[Muse]

Not quite sure the market agrees with your statement (if we take a 2 year horizon - about the time the WHS market exists):


I must however admit that the ride using using KGN (yes, the orange line) looks much more exciting - sheesh - all this adrenalin .... looks a bit like bungee jumping!

Both companies are building up a virtual market place ... and Kogan clearly created much more hype - followed by much more disappointment. Is this really better?

Kogan as a stock is all over the place. But their ownership of Mightyape should give WHS and themarket pause for thought. That company is beloved by its customers with reviews to boot, has superb archituture and its distribution and fullfillment are topclass. What's more, it's profitable. WHS' investment in themarket looks most unwieldy, unlimited and with no apparent KPI focused outcomes. Customer reviews are poor, nothing special about the range, deliveries are spotty as looks to use lots of drop shippers. I doubt with 5 years of $10m per annum they could build half the business that mightyape is. Looks like a cash bleeding blackhole to me. I've only ordered once from themarket (and also the warehouse) which was sufficient for me to just order anything I can get from them, from mightyape or amazon.

NZ is just too small and there are too many competitors for themarket to turn into the amazon of nz.

its the flyingpig v2....

[Beagle]

Well said F.M. The risk is 5 years of $30-$40m losses as Nick won't want to lose face by giving up too early.

[LaserEyeKiwi]

What is damming is that performance in its first year FY20 was for much of that year without Covid so you would expect that with all of FY21 being impacted by Covid and the well known very strong growth in online sales, top line growth in the market would have been very strong in FY21 not the exact opposite, going backwards quickly.

in the last 5 months covered by their last trading update, online sales across the warehouse group have increased 105% year on year.

[Beagle]

in the last 5 months covered by their last trading update, online sales across the warehouse group have increased 105% year on year.

What we don't know is how much of that is the Warehouse platform and how much is the market ? Yet profitability is down from $111m to estimated $40m. How much investment has Nick been throwing at the market platform ? Interim accounts will be interesting assuming they disclose enough information.

[winner69]

in the last 5 months covered by their last trading update, online sales across the warehouse group have increased 105% year on year.

That 105% increase for the 5 months was about taking online sales from $129m in F21 to $264m this year ..... HUGE

still doesn't tell us how much TheMarket sales were ...... maybe they'll report $5m revenues in first half?

[Beagle]

how is this for a marketing strategy?

the market spends huge money on google shopping ads on a large majority of their products (pay per click). The warehouse group also spends big money on these ads accross all their businesses. Google then bids up the pricing

They are effecitvely bidding against themselves on a huge amount of product!!! And in some cases if the customer clicks on both the market link and the warehouse link, they are paying 2 x the cost of that ad.

Now, im no rocket scientist but it doesnt take much to realise that this madness will not be helping either business bottom line.

Sure, top line sales will increase, but so to will the loss on the bottom line

“Turnover is vanity, profit is sanity”

Well said. Think I read somewhere recently the price of google adds has tripled in recent times. No worries, more money is sure to fix this so Nick will keep throwing heaps more at it thinking that's a guaranteed strategy for success...so what could possibly go wrong

[Waltzing]

Most of this last 24 months was supported by GDP brought forward. That support is now going to come from where? Which honey pot is the distributor of support coming from now? The minister of Financial Wizardry cant say another other than dont panic. But they have to keep the sugar coming from somewhere in the little kingdom.

ON line will grow no doubt because everyone is back in the HUT.

[mcdongle]

Also have to think about things like this looking foward.

Many households could see their mortgage interest rates double when they re-fix their mortgages, according to property data company CoreLogic.

And the new tax for unemployment which i think i read could be 2 or 3%

Consumer is going to be squeezed.....

[BlackPeter]

Also have to think about things like this looking foward.

Many households could see their mortgage interest rates double when they re-fix their mortgages, according to property data company CoreLogic.

And the new tax for unemployment which i think i read could be 2 or 3%

Consumer is going to be squeezed.....

True ... but "squeezed" consumers still need to buy stuff - and where better to go than to the place where everybody gets a bargain?

[Muse]

True ... but "squeezed" consumers still need to buy stuff - and where better to go than to the place where everybody gets a bargain?

Kmart.

Kmart is awesome.