WHS - Warehouse Group

[winner69]

What's the price going to be at open Monday?Any guesses?

$3.55 .....or lots less if the likes of Onion and JT were in for a quick buck (but I gather they don't get the shares until Tuesday)

[percy]

Yes I am somewhat surprised at the discount. I wonder whether institutions are reluctant to hold large positions retailers given their highly cyclical nature? Can be hard to offload large amounts of shares when the story changes, whereas retail investors can generally unload their positions within a few days?

I would guess institutions may doubt the pandemic sales surge will continue,in which case ,the on going issues of right sizing the business still have to be faced.

[nztx]

I would guess institutions may doubt the pandemic sales surge will continue,in which case ,the on going issues of right sizing the business still have to be faced.

Interesting point too -- the post Covid-19 Trading bubble may well affect other stocks too

Does this mean SP overpricing in other retailers & service providers when the effects of the bubble
are through & normalised post Covid trading results start filtering through ?

Indicators on this could be reflected in the earlier of listed retail stocks reporting later this year..

Didn't WHS close down some outlets & lay off 1000 or so last year ?

[Panda-NZ-]

How will more inflation affect WHS too?

Im a bit spooked by amazon increasing their prescence here but some years ago they added GST to those tax avoiders to level the playing field so the warehouse should be good in the medium term.

[ratkin]

The budget should be good for the warehouse, popular with beneficiaries

[Habits]

Pre made pizza's, WW own brand, $4 in Countdown.

Guess where they are made? Italy!

McCains pizza $6.30, Made in NZ

Some Watties branded tomato products also from Italy.

The own brand potato fries imported from? The Netherlands!

I used to think NZ was a garden...

Must be clocking up some Green miles eh?

This made me laugh... if correct about the italian made pizza vs nz made McCains and both sold here. Anyway I will stick with the ready-made dominoes $5 deal

[percy]

Interesting point too -- the post Covid-19 Trading bubble may well affect other stocks too

Does this mean SP overpricing in other retailers & service providers when the effects of the bubble
are through & normalised post Covid trading results start filtering through ?

Indicators on this could be reflected in the earlier of listed retail stocks reporting later this year..

Didn't WHS close down some outlets & lay off 1000 or so last year ?

"This is from 8th June 2020 announcement.
The proposed changes to our footprint consider factors including proximity to our other stores,
shopping habits of those in the area, store profitability and lease arrangements. The Group will
continue to assess its store network and has flexibility in its lease renewal profile with approximately
one quarter of its network coming up for renewal within the next 15 months".

Logistics and pricing issues are ongoing.
On the plus side as ratkin pointed out, the budget will give WHS customers more money to spend,which they will do.

[Beagle]

I noted in the recent half year result that their weighted average lease term is 4 years so there is quite a considerable opportunity to rationalize their extensive national footprint over the next few years especially in light of store within a store and online initiatives. I hope they don't do an acquisition, they have a lot of work to do on enhancing efficiencies and optimizing product selection.

[Panda-NZ-]

Where's the self-service checkouts?

Kmart has them already and both supermarkets.

[Baa_Baa]

I would guess institutions may doubt the pandemic sales surge will continue,in which case ,the on going issues of right sizing the business still have to be faced.

The pandemic recovery has and continues to involve distributions of billions of $ into the economy, I suspect retail will benefit (pun) for years to come.