WHS - Warehouse Group

[opac]

I can't see how the WHS can grow anymore. Aussie is/was a shamble, as was the Warehouse xtra. Now I have been told that their latest crazy plan is to open shops in small towns with population of around 3 to 4 thousand with 3500m2 shops with at least 24 staff. These shops will most certainly loose money, the population is simply to small, and no doubt they'll be locked into huge leases. Also apart from the CD's, they are not that cheap unless the product is on sale which always finishes a day or two after they have advertised it. Time to sell your WHS shares for sure.

[macduffy]

I don't think things are that bad at The Warehouse, opac.

Sure, the growth seems to have gone out of WHS but it's settling down now to be a good income stock with just a glimmer of a prospect of takeover one of these days. Depends a bit on what you want from a stock but I see it as having a place in a well diversified NZ portfolio.

[ratkin]

Just put them in the bottom drawer , collect the dividends and then one day in the future pick up the takeover cheque

[ratkin]

Up 4% whats the latest gossip?

[JayPe]

Up 4% whats the latest gossip?

The official response is that WHS are not aware of why the share price would increase like this in the absence of new information.
See http://www.nzx.com/markets/NZSX/WHS/...rading-Enquiry for the statement.

I note the share price has gone back a little since then (from $4.00 to $3.95), but its odd all the same. Perhaps a market just getting carried away on 'signs' that were in fact random?

[JayPe]

Post-AGM article:
http://www.nzx.com/news/4393869/The-...nline-offering

Growth plans:
- Looking to grow online offering to $30m-40m revenue p.a. including a number of online items (e.g. spa pools). Nice to see that they're already getting 200k hits per week, you'd think this would be a massive growth area for them.
- more stores, with 5-8 red sheds in the next few years, 3 blue sheds by christmas(!) - good to see the stationary business turning around after a lousy few years
- "refresh and refit" a swag of stores, and "compete vigorously" in core categories like footwear - so more of the same there then.

[winner69]

So The Warehouse had a pretty bad couple of months with same store sales down 4%

Things might be tough in retail land but I think The Warehouse need to face up to reality in taht they are probably losing market share to the likes of Briscoes, Bunnings and Mitre 10 Mega (and CDs and DVDs going to JB Hi Fi)

I went to The Warehouse yesterday .... dead as but was really amazed as to how much cheap crap sitting on shelves and on the floor ... and the place was a mess as well ... and the garden section looked worse than my garden after I have neglected it for a few months

Hardware / tools - utter crap and no choice ... and power tools at higher pruces than Bunnings around the corner

Why would anybody buy a 42 inch Transonic TV when name brands are about the same price at the many other stores competing like hell

No doubt WHS will still have sales over a billion but heck if growth is on their minds they have problems ... big problems

They have not kept up witht he changing retail landscape ... and blaming a bad economy is keeping their heads in the sand

Christmas cheer bypasses Red Sheds
http://www.nzherald.co.nz/business/n...ectid=10698035

[percy]

I agree with you.Also if you look around you will notice they are out of the most popular sellers.I noted in meanswear in shirts they did not have a full range of sizes.Allways plenty of small,but out of mens, large,or xl sizes.So their buying and supply clain is not working.Also remember to have same sales you need to be up 2.5% with GST increase.

[Balance]

None of the instos really want to be out of WHS as they could miss out if Woolies made its next move.

Just like what happened with NZS and PGW - if you are not there, you miss out.

[Jay]

Is Stephen going to accept a price around $5 tops
Can't see Woollies etc offering upwards of what they paid for their 5-10% earlier