Quote Originally Posted by Aaron View Post
Snoops I can't give you more good reps without spreading it around more. You would assume Investore(Stride) mgmt and Woolworths executives would have similar power in negotiations as it is mutually beneficial relationship.
Allow me to explain how 'mutually beneficial' at Woolworths works. Woolworths orders food from suppliers on 60 day payment terms. Goods arrive at the store on a 'freight included' basis. Goods are put on shelf and sell within a few days. Woolworths banks the money for the goods they haven't bought yet. Eventually Woolworths pays their suppliers for the goods they sold a few weeks ago. So Woolworths clips the ticket without having to put any cash up front for the goods. It is called the 'capital light' food retail model. And Woolworths are the masters at it.

Woolworths would be no less ruthless when negotiating with their landlords. How many times have you seen a 'big box' successfully rebadged for alternative use? I expect Woolworths use their 'threatening to relocate' tactic with full force come rent renegotiation time.

Quote Originally Posted by Aaron View Post
But Investore would not be able to dictate to the tenant like say a big mall with a Mum and Pop retail shop. I would worry if Countdown/Woolworths start building or owning their own shops. I assume they don't already.
No need to lay out for bricks and mortar yourself if you can bully a landlord into doing it for you.

SNOOPY