WHS - Warehouse Group

[percy]

Percy - they are retailers, what does it matter if they own premises they own good businesses, I bet Trademe or Xero don't own theirs either.

Huge on going liability.Five,seven years leases, whether you are profitable or not.Landlords do mind whether you occupy the premises or not,so long as you pay the rent.A retailer like Farmers,Whitcolls,Stevens or Warehouse need big stores.Big store,big on going liability,not just this year,but next year,the year after etc.Malls will not build the space for Warehouse or Farmers unless they have a cast iron lease. Trade Me and or Xero would most probably be paying up to 2% of their turnover in rent,while Pascoes,Farmers ,Stevens and Whitcoulls are most probably paying between 8% to 18% of turnover.You could run Trade Mall or Xero from near anywhere, while Whitcoulls,Steven,Pascoes and Farmers are in very expensive retail space.

[golden city]

very skitical about the moves.., could fetch a full takeover

[Hoop]

The retail market is caught up in this Industrial Revolution so innovative change is spelling the end to traditional retailing practices...Hmmm so why does a big player want "in" ???...That the question we investors must ask ourselves...A takeover?? not necessarily,,,

Personally, I think the answer is somewhere in between the lines of disruptive marketing/business strategies..Its the beginning of a fight back from the old tranditionists to keep market share and then try to gain market share especially from the very fragmented innovating micro disruptors (e.g the multitude of online sellers) that have be nibbling away. The traditional retailer has now realised they have to change and also disrupt the marketplace using the basis of what customers now want or yearn to have....

The disruptive marketing/business strategies are many, maybe the Normans have found a set of strategies that will work......maybe one strategy could be to reduce duplication costs .. add overall synergy by gaining partial control so to gain access and use the collective alliances various systems ...or another strategy could be to gain control over supplier contracts..eg Sell better brand products.(Warehouse reason to buy out Noel Leeming)

Soon to be deleted

[macduffy]

I wonder about the Normans having " a set of strategies" to rejuvenate retailing. As the owners of the Farmers department stores, are they showing any signs of this? Or is it a matter of looking to use the combined buying power of a Farmers/Warehouse bloc in sourcing product, negotiating rents, insurances etc? A formal takeover wouldn't be necessary for this to happen.

[stoploss]

Foodstuffs in Wellington been cashing up property they purchased to stuff up Countdown chain of late . ( at a massive loss ) So maybe they will exit there 10 % share in this at a $ 2 odd discount , then things might start to happen ....

Ended up , Countdown jumped first and a $ 3.65 discount ........
I owe an apology to Foodstuffs as I previously stated on here that they purchased a 10 % stake to block Countdown . From reading today it states that Foodstuffs purchased first then Countdown took the blocking stake ......Oh well only cost them $ 110 Million
Makes some of my trading of late look good ......
http://www.stuff.co.nz/business/indu...-the-warehouse

[Jay]

Read the other day Online sales are only 6% of total sales currently - So retail shops are not dead yet - click and collect is good option - no delivery fee and/or wait - entices the customer into the shop and they may then buy something else.
So what will Foodstuffs do now Woolworths have sold out - sell down as well - both lost a lot one for real and the other on paper (so far)- have had the divies to offset it a bit.
Will it be taken private again with the help of the Normans as mentioned ??

[Balance]

Read the other day Online sales are only 6% of total sales currently - So retail shops are not dead yet - click and collect is good option - no delivery fee and/or wait - entices the customer into the shop and they may then buy something else.
So what will Foodstuffs do now Woolworths have sold out - sell down as well - both lost a lot one for real and the other on paper (so far)- have had the divies to offset it a bit.
Will it be taken private again with the help of the Normans as mentioned ??

Foodstuffs will sell if there's a full bid now for WHS.

Wait the space.

[Jaa]

Anyone think Woolworths will now enter the NZ discount market under their own steam with Big W?

Or will the Norman's secure a near monopoly in department store sales?

[macduffy]

Anyone think Woolworths will now enter the NZ discount market under their own steam with Big W?

Or will the Norman's secure a near monopoly in department store sales?

No, I think that WOW has too many problems in the Aust general merchandise division to want to expand that part of the business to NZ. Return on average funds employed in the Dec half year was down to 9.98% and EBIT a loss of $38.5m after making provisions for the "transformation" of the BigW business.

But perhaps an expansion of the Ezibuy business?

[kiwitrev]

Out of curiosity I googled James Pascoe and was surprised to learn on the Wikipedia link just how massive this coy is. Having trouble posting the link but easy to find.