WHS - Warehouse Group

[Crackity]

WHS closed at $1.20 less than half the $2.50 price they floated at in 1994, 30 years ago !

They a buy yet?

KW - you aren't allowed to play on this question 🤭

[Basil]

They a buy yet?

KW - you aren't allowed to play on this question 🤭

LOL mate. Better ask her I reckon.
In my previous post I suggested it's surely worth less that $1 now and then there's the almost inevitable NZX50 index exit still to come in due course.  You could try a dead cat bounce on index exit trade..what could possibly go wrong  lol

[Gerald]

Interesting top 20, not a very open register if there was an activist or two around...

[Basil]

Pretty much a closed shop and they are very welcome to it.  For mine, the WHS brand is in systemic decline.
Noel Leeming worth a normal retail multiple but is handicapped by hideously overpaid and inept management and a board totally bereft of any ideas on how to stem ongoing market share losses.   The tens of millions Nick has organized to be paid to consultants over the years when he himself is paid millions per annum to have the good idea's is a total disgrace.

As for his gross recklessness with "the market" which has cost shareholders over $100m over the years...honestly, he simply has to go.  This company is uninvestable until Nick and Joan are gone.

[winner (n)]

Pretty much a closed shop and they are very welcome to it.  For mine, the WHS brand is in systemic decline.
Noel Leeming worth a normal retail multiple but is handicapped by hideously overpaid and inept management and a board totally bereft of any ideas on how to stem ongoing market share losses.   The tens of millions Nick has organized to be paid to consultants over the years when he himself is paid millions per annum to have the good idea's is a total disgrace.

As for his gross recklessness with "the market" which has cost shareholders over $100m over the years...honestly, he simply has to go.  This company is uninvestable until Nick and Joan are gone.

Noel Leeming slowly but surely losing heaps of shares to JB Hi Fi ...and seem totally bereft of ideas to counter/compete

[Greekwatchdog]

CEO has gone effective immediately.

The Warehouse Group (TWG) today announced that Nick Grayston will step down from his role as Group Chief Executive Officer, effective immediately.

TWG Chair Joan Withers said "Since 2016, Nick has led TWG through a period of significant change in the retail industry and I want to thank him for his commitment and contribution. His focus on sustainability, adopting Agile ways of working, navigating the challenges of Covid and initiating the significant and successful programme of critical infrastructure upgrades have been hallmarks of transformation of The Warehouse Group in the last five years."

"However, as we look to the future, we have agreed a change in direction is necessary for the Company and that it needs fresh energy to execute."

John Journee will take up the role of Interim CEO on 20 May 2024, while the Board undertakes a search for a new CEO. The Board has determined that, upon taking up his new role, John will cease to be an independent director but will continue as an executive director of TWG.

"John spent 15 years at TWG across a range of roles, including as CEO of Noel Leeming, and has been on the TWG Board since 2013. His experience and familiarity with TWG will be invaluable as we navigate this transition and begin our search for a new permanent CEO," says Mrs Withers.

Nick Grayston said it has been a privilege to lead The Warehouse Group and work alongside such a dedicated team.

"Leading The Warehouse Group has been one of the most rewarding experiences of my career. While it is the right time for me to step aside, I have every confidence in the talented team at The Warehouse Group to drive the business forward and I wish them the very best."

Mrs Withers said the Board and Executive team were committed to supporting the 10,000-strong team at The Warehouse Group in delivering value to shareholders and customers and getting the Group's strategic and financial performance back on track.

"Our team members, customers, shareholders and all Kiwi families are our inspiration and motivation as we focus on improving the performance of the core business. This transition marks a new chapter for TWG as we address our current challenges and seize the opportunities that lie ahead."

[850man]

Grayson's involvement seemed to take the company backwards

[Basil]

CEO has gone effective immediately.

The Warehouse Group (TWG) today announced that Nick Grayston will step down from his role as Group Chief Executive Officer, effective immediately.

Thank goodness for that.  Was driving past their head office on the North shore earlier this afternoon and thought to myself, nothing changes until that idiot goes.  About $120m in total wasted on his moronic idea of a mini N.Z. version of Amazon.  Now Joan, you know its time for you to go too...well and truly past your "best before" date

[LoungeLizard]

Finally! What an utter disaster Grayston has been. Just a pity the Board took so long to realise that he was completely out of his depth. Hopefully they will hire a no-nonsense CEO who will be able to turn the business around.

[Greekwatchdog]

Finally! What an utter disaster Grayston has been. Just a pity the Board took so long to realise that he was completely out of his depth. Hopefully they will hire a no-nonsense CEO who will be able to turn the business around.

The Board should resign as well. They are as accountable as he is.

[Basil]

The Board should resign as well. They are as accountable as he is.

Couldn't agree more but at least they finally managed to have the balls to take out the garbage.  Now do the decent thing and step aside too.
The incoming CEO has a massive job to sweep out huge amounts of other dead wood in the company.  The vast amount of people in this poorly performing company earning more than quarter of a million dollars is disgraceful.  They just bloody retailers for goodness sake.

[Greekwatchdog]

Couldn't agree more but at least they finally managed to have the balls to take out the garbage.  Now do the decent thing and step aside too.
The incoming CEO has a massive job to sweep out huge amounts of other dead wood in the company.  The vast amount of people in this poorly performing company earning more than quarter of a million dollars is disgraceful.  They just bloody retailers for goodness sake.

I guess the shareholders get to make that call soon enough.

Rather embarrassing position to find themselves in, since they now admit they got it wrong with Nik. The Asset bubble created by Covid has certainly taken some scalps in the boom and bust cycle.

Who's next to fall off the tree?

[Basil]

Same woke board that gave the Govt back ~ $60m in Covid wage subsidies, money they were perfectly entitled to keep but they were scared of Cindy telling them off.  That money is now desperately needed to transform the company but its gone.  Board are a bloody disgrace in more ways than one.
I still think its completely uninvestable and others are going to keep eating more and more of the WHS's market share. I think all brands go through a life cycle and the WHS as a brand is a super slow motion train wreck that's in terminal decline. 

[Greekwatchdog]

The problems I see is that they dabbled into too many areas without going all in.

Getting into Groceries was a waste of time and energy. If you going to tackle the incumbents to reduce prices then you have to go all in. Mucking around with staples didn't help and they took there eye off what they were good at selling.

As for The Market, that was an expensive flop.

They reduced staffing and forgot about service.

Retail landscape has changed. Cheap Briscoes takeover for mine. Drury must be rubbing his hands.

Otherwise the next CEO has a mammoth task to get this out of the gutter.

[entrep]

3 step plan to Warehouse recovery:

1. Fire the CEO.
2. Sell Torpedo7.
3. Shutdown TheMarket.

Nailed it. If only I could have got $2 million in consulting fees for that advice.