Retail Stocks

[Hectorplains]

Some staggering numbers here  in the total cost of doing business online.  Sure, they're US figures but there must a similar story here.  NZ may not have a 20% return rate but even half that would be hard to handle.

[KW]

Some staggering numbers here  in the total cost of doing business online.  Sure, they're US figures but there must a similar story here.  NZ may not have a 20% return rate but even half that would be hard to handle.

Its probably still less than the amount of items stolen from physical stores, considering only a small proportion of sales are done online.  Physical store returns will be just as busy as people head to the malls to exchange items or a store credit. 
https://www.stuff.co.nz/national/crime/133055708/retail-crime-costing-more-than-25-billion-a-year-retail-nz-survey

[KW]

Costco has been in Australia for 15 years now, and NZ one.  Which just reminds me how far NZ is from being a first world country - we miss out on so much.  Same goes for not having IKEA.   What hope do we have of attracting a third supermarket brand to the country when one of the world's largest retailers barely has a presence here.  

If it does eventually expand outside of Auckland (not holding my breath, they have been talking about it for four years and still nothing has happened), expect it to take a bite out of local retail.  

"Costco is quickly racing to $5bn in annual sales in Australia and more than 1.5 million paid-up members at its warehouse-style supermarket stores, as the chain emerges as a new force in Australian retail with sales that now easily eclipse retail heavyweights Myer, David Jones, Target and Officeworks.

Its sales in 2023 lifted almost 20 per cent – at a time when supermarket majors Woolworths and Coles could only manage sales growth in the region of 5 per cent – with the US-based retailer also slashing its prices in Australia last year to counter fresh competitive challenges from its key supermarket rivals.

Costco Australia reported total sales of $4.4bn in 2023, up 19.8 per cent from $3.67bn in 2022 which represented a 30 per cent increase on the sales performance in 2021. "

[BlackPeter]

Costco has been in Australia for 15 years now, and NZ one.  Which just reminds me how far NZ is from being a first world country - we miss out on so much.  Same goes for not having IKEA.   What hope do we have of attracting a third supermarket brand to the country when one of the world's largest retailers barely has a presence here. 

If it does eventually expand outside of Auckland (not holding my breath, they have been talking about it for four years and still nothing has happened), expect it to take a bite out of local retail. 

"Costco is quickly racing to $5bn in annual sales in Australia and more than 1.5 million paid-up members at its warehouse-style supermarket stores, as the chain emerges as a new force in Australian retail with sales that now easily eclipse retail heavyweights Myer, David Jones, Target and Officeworks.

Its sales in 2023 lifted almost 20 per cent – at a time when supermarket majors Woolworths and Coles could only manage sales growth in the region of 5 per cent – with the US-based retailer also slashing its prices in Australia last year to counter fresh competitive challenges from its key supermarket rivals.

Costco Australia reported total sales of $4.4bn in 2023, up 19.8 per cent from $3.67bn in 2022 which represented a 30 per cent increase on the sales performance in 2021. "

I guess there are pros and cons about living in NZ vs living in one of the big retail hubs of the world.

However - it does not make a lot of sense to enjoy the solitude, space and (still sort of ok-ish) nature in NZ and at the same time whine about insufficient competition in the retail sector. Its this thing about having your cake and eat it too ...

Hey - Sydney, Singapore, KL, or even LA are just a plane hop away ... and anybody who wants can go there and shop until they drop.

Apart from that - plenty of space in Rollestons industrial area, and it sounds, the council gave already green light for Costco and Ikea and even built already the road connections and a couple of big roundabouts  surrounded by empty fields. Does not mean though, that Costco and IKEA will come, but it would be easier for them - we shall see.

https://www.thepress.co.nz/nz-news/350027559/could-rolleston-host-south-islands-ikea-costco

[KW]

I guess there are pros and cons about living in NZ vs living in one of the big retail hubs of the world.

However - it does not make a lot of sense to enjoy the solitude, space and (still sort of ok-ish) nature in NZ and at the same time whine about insufficient competition in the retail sector. Its this thing about having your cake and eat it too ...

Australia still has solitude, space and nature (in fact far more of it), and still has all the retail stores.  I'm not complaining about NZ not being London or New York.  We should at least be able to keep up with Aussie.  Its not like its more difficult to ship things from Sydney to Auckland than from Sydney to Perth.

The consents that were issued are to a greedy developer not the companies, who is now trying to extort Costco and IKEA into signing up to lease the land on the basis of "you dont have anywhere else to go".  So basically screwing it for the rest of us as both companies go "yeah, nah".  This is what I meant when I said they have been talking about this for 4 years already and nobody has signed anything.  Hopefully the developer goes broke, and Costco gets to buy the land in a bankruptcy sale LOL

[Basil]

Interestingly, Diana Clement wrote an opinion piece in the New Zealand Herald the other day that most of the products in pack and save that were available at Costco we're cheaper at pak n save

[BlackPeter]

Australia still has solitude, space and nature (in fact far more of it), and still has all the retail stores.  I'm not complaining about NZ not being London or New York.  We should at least be able to keep up with Aussie.  Its not like its more difficult to ship things from Sydney to Auckland than from Sydney to Perth.

The consents that were issued are to a greedy developer not the companies, who is now trying to extort Costco and IKEA into signing up to lease the land on the basis of "you dont have anywhere else to go".  So basically screwing it for the rest of us as both companies go "yeah, nah".  This is what I meant when I said they have been talking about this for 4 years already and nobody has signed anything.  Hopefully the developer goes broke, and Costco gets to buy the land in a bankruptcy sale LOL

To be honest - not sure, Australia is a good example. The handful of times I was (as tourist) in Australia, I found that nearly everything which matters to a visitor is even more expensive over there than in NZ, and the increased choice is often compensated with still lower quality. Example: Australia has Aldi, and we, knowing it from Germany, went into it. Very disappointing experience - in Germany you can buy at Aldi really good (i.e. good quality and tasty) food at very reasonable prices. The stuff you can buy in Australia is tasteless at best. Too americanised.

We clearly should avoid to get closer to Australia. Not a lot we can learn from them, and their accents are
terrible as well ;

Re Rolleston - I have neither any insider information nor any interest in the development there (other than driving from time to time to the big petrol station they built in the middle of nowhere - the price is right).

It sounds however you are emotionally pretty involved. What happened? Did they buy the land before you could make an offer ?

[KW]

Interestingly, Diana Clement wrote an opinion piece in the New Zealand Herald the other day that most of the products in pack and save that were available at Costco we're cheaper at pak n save

Thats called competition. Bet you they are not cheaper outside of Auckland.  And I would also bet that in the absence of strong competition Costco NZ is not cutting prices the way they have done so in Australia.  

But the value of Costco is not in buying the cheap stuff that supermarkets sell, its the big discounts on high end items, and its own Kirkland brand.  Like its dog food :-)  

At least if we get one in Chch it will have a liquor section.  The alcohol they sold was worth the membership alone.  Anecdote, I went to the Cloudy Bay wine dinner and the reps were really cagey about whether they still had the Costco contract.  That was the real reason why you cant buy Cloudy Bay in NZ, whereas I (and all the other millions of members) were buying it cheap in Costco worldwide.  Cloudy Bay like to portray themselves as still being small, boutique and premium, but the volumes required to supply Costco is huge.  Costco is the biggest wine buyer in the world, and they only sell 200 labels. 

[KW]

It sounds however you are emotionally pretty involved. What happened? Did they buy the land before you could make an offer ?

No, I just want Costco and IKEA.  Their absence is making me homesick for Australia lol.  I dont need reminding how we dont have access to things that the entire rest of the western world has. 

[Basil]

Mate who lives just up the road from Costco reckons you're not missing much.
Signed up and went once and never again.     The best "bargain" he reckons is you get Covid for free.  So many people crammed into that place it's a breeding ground for it.

[KW]

Mate who lives just up the road from Costco reckons you're not missing much.
Signed up and went once and never again.    The best "bargain" he reckons is you get Covid for free.  So many people crammed into that place it's a breeding ground for it.

I've heard its quietened down a bit, after all the tyre kickers had a look, decided they couldnt afford to buy anything, and didnt renew their subscription.  

Its worth the membership fee even if you only go there once every 3 months just to buy dog food and flea treatments.  Not having a liquor section isnt helping, that was the other best reason for joining.   But stock changes all the time, even if you didnt find something you wanted to buy on one visit doesnt mean that there wont be new stuff in there next time.  Was always a great place for buying gifts, and catering for events.  I heard all the Christmassy stuff sold out the week before Thanksgiving.

For anyone looking to join, the best way to use Costco is to join the FB fans group which posts which items are on rebate that day.  Thats when you make huge savings.   Or if you want to check what's in stock. 

[Waltzing]

BBB made a profit  ....

People love their beds and  bathrooms ...

https://www.nzherald.co.nz/business/bed-bath-and-beyond-nz-profits-defy-downturn-and-climb-75pc/5UJ2A2NDURHJVEJLIDMYKUNKRM/

[lorraina]

You can get exposure to this sector via JYC Joyce listed on ASX.They own Bedshed .

[Basil]

I've heard its quietened down a bit, after all the tyre kickers had a look, decided they couldnt afford to buy anything, and didnt renew their subscription.

Did a small study back in the day at Uni in my optional marketing paper on the cost of packaging.  You'd be really surprised at the percentage of cost that is often related to packaging compared to the product cost itself.  I hear many of Costco's products are only available in very large quantities, best suited to large families.  I'm not sure their products are cheaper per se, (and Diana Clement of the N.Z. herald thinks most stuff available at Pak n Save is cheaper), it's just that they are taking advantage of cost efficiencies with large quantity packaging.
More likely, a lot of people have found the Costco hype and so-called bargains, not worth the time, effort and expense of driving out of their way for.

[winner (n)]

Funny this comment on a Reddit thread -

Briscoes is under severe strain as well, tumbleweeds through the store as everyone has gone to Kmart.