WHS - Warehouse Group

[kiwitrev]

Hi Percy
That all sounds good but to enable that muscle to be flexed wouldn't they need to be in a position of real power? How could they execute unless they were in total control? What am I missing?

[ratkin]

Hi Percy
That all sounds good but to enable that muscle to be flexed wouldn't they need to be in a position of real power? How could they execute unless they were in total control? What am I missing?

Thats what i dont follow, they cant even get a seat on the board

[percy]

From small acorns large oak trees grow.!!!
Maybe the Normans see themselves as no threat to the supermarket shareholders?

[BIRMANBOY]

What you (we) are missing is real hard facts from the horses mouth. So obviously they (the Normans) will be holding that info closely. They have reportedly said that they are treating the purchase of WHS shares as an investment. Ok but an investment for what purpose, and to what direction. If I was in their Gucci loafers I may be thinking...lets buy into WHS and use position as leverage to replace WHS existing jewellery stock/kiosks with existing Pascoes staff (better trained) and stock. Close down existing Pascoes stores...38 in number so save on high main street overheads etc, shift staff and stock to 92 WHS stores after negotiating much smaller overhead costs etc. Its a win win...WHS ups the quality and training of the jewellery component, gets additional new income from space they already pay for and no longer has to worry about buying and controlling something they don't really understand. The Normans can use WHS to fold in existing Whitcoulls stock (and staff), Farmers..the same. WHS also gets rid of competitors. Of course that's all cloud based speculation and I have NO facts to support that. However stranger things have happened and let get real ...The Normans are up to something...and they ain't dumb by all accounts. Whether real or speculative the interest can only drive the SP in one direction ultimately.

Hi Percy
That all sounds good but to enable that muscle to be flexed wouldn't they need to be in a position of real power? How could they execute unless they were in total control? What am I missing?

[bunter]

IMHO... retail isn't dead or dying and the internet isn't going to kill it off.

There'll always be a need for shops.

Retail's going through a period of adjustment.
We had too many shops.

Shops, whole chains are closing down. Food shops seem to be becoming more numerous.

When the dust settles, there'll be a smaller number of well-managed shops left - the ones that adapted to the web, are well managed, had a bit of luck, are in the right sectors.

I think WHS, BGR (provided Rod Duke lives forever) and HLG will survive, and flourish again.

[winner69]

Some calling for heads to roll
http://www.nzherald.co.nz/business/n...ectid=11391064

Shareholder activism in WHS hard to get going methinks. Too many shares closely held and rest spread amongst instos, nobody really to push the issue except the Normans

Need to get mr tindall to see things are not going right

http://www.nzherald.co.nz/business/n...ectid=11391064

[Bobdn]

Some calling for heads to roll
http://www.nzherald.co.nz/business/n...ectid=11391064

Shareholder activism in WHS hard to get going methinks. Too many shares closely held and rest spread amongst instos, nobody really to push the issue except the Normans

Need to get mr tindall to see things are not going right

http://www.nzherald.co.nz/business/n...ectid=11391064

"Rickey Ward, NZ equity manager at investment firm JBWere, said calls for board and chief executive changes were "a little bit harsh".
Ward said challenges such as online competition had caused disruption in the retail industry.
"I don't think you can put that down to the CEO or the board," he said. "I think they're doing what they need to do and that is diversify."

I side with Ward and I'd leave the CE where he is at this stage. Business on the online site has grown 30% and the stores have a good vibe. I'll see how things look in 12 months.

[percy]

The board and CEO have been making all the right decisions.
For the business to survive they needed Noel Leeming's suppliers,they needed Torpedo online business,and they need a finance division.
Just a fact of life they needed to spend a lot of money staying where they are,and securing their future.
Failure to do so will have speed up WHS demise.
Salt and Milford show no long term interest in WHS's future.
People who do not understand the long term problems retailers face,should not offer short term advice.

[Beagle]

Salt's managers and Gaynor probably know the WHS is well past the point of market saturation and the business as it stands is on a hiding to nothing. Come on... how many braches are there, far too many is the answer !!
Halve the number of branches, halve the staff, transform the remaining braches so that the shopping experience feels a lot less down-market, make sure all the major brands are represented in each store, slash corporate over-head e.t.c. Unless something truly transformational happens like I've outlined then its probably more of the same woeful under-performance. I'm with Salt and Gaynor, time for some truly revolutionary thinking.
Extremely tired brand that's desperately calling for a real transformation. Those professional investors know Tindall would never go for that so quite frankly they see better opportunities elsewhere and I can't say I blame them as they're quite obviously tasked with getting the best return for their clients money. Good on them for speaking out I say. My 2 cents.

[percy]

Yes I agree.
Those are pretty much the reasons I would not invest in it.
However I would think Tindall and other long term stakeholders,staff and suppliers would disagree with us.