WHS - Warehouse Group

[macduffy]

Who knows!

Well, that certainly sparked a response or two!

I think you're all on the money there. The Warehouse has lost its way in today's marketplace. Will it regain its niche or has it had its day, both as a merchandiser and as an investment?

[RRR]

I decided 2 years ago not to step in a Warehouse store again and I am still not missing anything! Warehouse is a junkyard.

[percy]

I am thinking it's like a bottle of lemonade.Once you have left the top off overnight it is impossible to get the"fizz" back in.
Retail markets change.When WHS first started NZ was starved of selection.Prices were high.WHS rode that tide,NZ public were hungry for "bargains",and WHS did well.Today ,the market is flooded.Go to any mall before Xmas,and they were like "Asian flee"markets.
Warehouse stationery focused on selection,value,service and have done well. As far as WHS as an investment,the SP will depend on retail sales.Poor sales = poor investment.Great sales = great investment.If you like shopping there buy their shares.If you don't ,don't .!!!!

[emearg]

.I deal with Bunnings and note they always have experienced people on hand.Even have a person to direct you when you enter the store.Compare that with The Warehouse,no floor staff and poor store layout

So true! Bunnings staff are super friendly, super helpful and seem proud to work at Bunnings.

Warehouse staff are unfriendly, often rude, disinterested and obviously would prefer to be somewhere else. You can avoid this problem by avoiding them right up until the checkout. Sucks to queue for ages only to be greeted (or not) by someone who doesn't have a clue how to provide customer service.

I used to own Warehouse shares but sold out a few years ago when I thought they had lost their way. Until they sort themselves out, assuming they aren't broken, I won't go near them.

[kiwitrev]

With the now new low as of the moment of $2.82 you would think that Tindall would have to seriously look at the company's prospects and the path outlined under the current capex for expansion etc. It seems to me this company now has inherent issues which the current regime are unlikely to resolve without a change in direction and some really serious $$ which would be beyond WHS. Does this current S/P get WOW's attention? I would be interested to hear views from other posters.

[macduffy]

Ever since WOW bought that 10% holding in WHS I thought that they would eventually make an offer as the basis to replicate their BigW chain in NZ. It was also, of course, a counter to Foodstuffs who held a similar number of shares in what became a Mexican standoff where neither was prepared to sell out in case the other made a move!

Must say though that I've changed my mind as the retail scene has evolved; WOW planning to become big-time in hardware in Aust; growth of internet shopping; WOW's plans to quit Dick Smiths, etc. I reckon now that WOW would be happy to cut their losses and quit the WHS shareholding if they could get a half-decent offer for the shares.

[percy]

Macduffy I think you are right.
After posting on this thread I thought about who would be a natural owner of WHS.I thought about Foodstuffs,but I keep coming back to WOW.After reading your post ,it is hard to see a takeover at a premium.

[Silverlight]

Just to be a bit contrary in the mix, the new stores look really really good. They feel bright, and the new environment has a positive impact on staff.

The online store is very easy to use and well designed, if I want to compare items at bunnings, their website doesn't tell me prices, and their beat by 15% only works if items are the same brand/ model.

[percy]

Silverlight.
Nice to hear some one positive.
I think retail is all about presentation and a bright store not only has a positive affect on staff,but customers enjoy it,and happy customers will spend.Activity breeds activity.
The day of just looking for a bargain has gone.Today people expect good products,good prices,good service in a pleasant environment.
If you like the new stores I am sure others will too.I look forward to visiting one,as I thought they were well past their "use by " date.!!
I will also try out their web site.

[GTM 3442]

Silverlight.
Nice to hear some one positive.
I think retail is all about presentation and a bright store not only has a positive affect on staff,but customers enjoy it,and happy customers will spend.Activity breeds activity.

Isn't that pretty much what Farmers did a while ago - moved their retail experience upmarket. Nice to see WHS finally cottoning on. . .