-
Member
Woolies to take on Bunnings in Australia by going into a JV with Lowes (2nd largest home improvement retailer in the world)
Crusaders: Super 14 Champions 2008
SUPER Champions 1998, 1999, 2000, 2002, 2005, 2006, 2008
NINE finals, SEVEN titles
-
Indeed, an interesting development cantab.
What do you think about Costco's entry into the Australian market?
-
Market must be reading that Bunnings likely to be adversely affected by this move, as WES dropped by about 5% today, notwithstanding that they came out with a "Bring it on!!" challenge to WOW. Both WOW and WES have been on my radar for a little while, given the brightening prospects for the retail sector; WES has performed relatively better over the past 6 months, and PE is lower. Being domiciled in NZ I can only speak from my knowledge of Bunnings in this country, but I should think WOW will find them hard to beat; I use them regularly as I find that their product range is so extensive.
What do others think - should I WOW or should I WES?
Last edited by COLIN; 25-08-2009 at 09:32 PM.
-
Member
Originally Posted by COLIN
Market must be reading that Bunnings likely to be adversely affected by this move, as WES dropped by about 5% today, notwithstanding that they came out with a "Bring it on!!" challenge to WOW.
"Bring it on", heard that one before, could mean trouble ahead, lol.
WES and WOW, both probably worth owning but hold WOW only.
I hope Woolies sticks it up them.
Crusaders: Super 14 Champions 2008
SUPER Champions 1998, 1999, 2000, 2002, 2005, 2006, 2008
NINE finals, SEVEN titles
-
Member
Originally Posted by Huang Chung
Indeed, an interesting development cantab.
What do you think about Costco's entry into the Australian market?
Huang Chung, interesting alright with Bunnings making over $600m profit with a profit margin of 11% plus.
Costco could affect Woolies pricing and profit margins for some products at some of their stores close to a Costco store. Personally I wouldn't pay a subscription to join Costco just so that I could buy one or more of a limited range of products in bulk but some people will.
Any thoughts yourself?
Crusaders: Super 14 Champions 2008
SUPER Champions 1998, 1999, 2000, 2002, 2005, 2006, 2008
NINE finals, SEVEN titles
-
Well, WOW continues to 'wow' with ever increasing profits, despite our market being so small. Their move into hardware could be interesting. WES obviously has had first dibs at selecting the best sites. Will be interesting to see if they go for the 'big barn' approach like Bunnings, or smaller format stores with a more personalised/expert service as a point of differentiation. Home Hardware (under Dank's) advertises that they are the 'proper' hardware store (I believe the stores are actually owner/operator, with Danks being the supplier). Can't see this really fitting the WOW model though. Still, why did they buy Danks, when they could have by passed them completely (as they have with Mitre 10) and set up a new big box brand?....must be a reason.
Despite the entry of Costco, WOW will probably continue to be successful at milking money out of us. Aldi's have popped up all over the place in the last 10 years, with little impact on WOW. Can 't see the status quo changing all that much.
Still, at current prices, I don't think WOW is any screaming buy.
Last edited by Huang Chung; 25-08-2009 at 11:03 PM.
-
Member
Nice sunny result
Nice profit and dividend from Woolies, up 13%
Profit guidance + 8 to 11% growth for 2010
I can live with that
Crusaders: Super 14 Champions 2008
SUPER Champions 1998, 1999, 2000, 2002, 2005, 2006, 2008
NINE finals, SEVEN titles
-
Member
NZ: announcement recently that all Woolworths, Foodtown and Countdown supermarkets will be rebranded as Countdown.
Have to say that since Woolworths took over in NZ things have improved markedly at Countdown. The prices are much reduced and vey competitive, it's great to have lots of inhouse -homebrand products and the newly renovated stores are very convenient and a pleasure to shop in. I also like having my (free) bags packed for me by the friendly staff.
Crusaders: Super 14 Champions 2008
SUPER Champions 1998, 1999, 2000, 2002, 2005, 2006, 2008
NINE finals, SEVEN titles
-
Member
Good to see that the ACCC have approved the takeover of DKS and that Woolies/Lowes have gone unconditional. This is great news for the Aussie consumer in the hardware space.
Crusaders: Super 14 Champions 2008
SUPER Champions 1998, 1999, 2000, 2002, 2005, 2006, 2008
NINE finals, SEVEN titles
-
OK one eyed cantab. "Bring it on".
Last edited by h2so4; 12-11-2009 at 01:52 PM.
h2
Posting Permissions
- You may not post new threads
- You may not post replies
- You may not post attachments
- You may not edit your posts
-
Forum Rules
|
|
Bookmarks