WHS - Warehouse Group

[Basil]

Thanks Shareguy. The 48% controlled by Sir Stephen Tindall and his foundation is problematic in that his goals are not necessarily alligned with other shareholders.

Almost as problematic is the Pascoe's stake who effectively blocked the reconstruction of the company from morphing into a third grocery player in the market.

Between their combined shareholding of nearly 70% other shareholders are in the invidious position of being marooned on a directionless ship adrift at sea. Worse is that management and the board don't appear to know where they are or even where they're supposed to be going.

[Basil]

WHS management have a LOT to prove to shareholders.  In my opinion their cost out program needs to be a REALLY serious one and management have to prove to shareholders that this is a company that's still an investable proposition.  The jury will be out for quite some time.
https://www.nzx.com/announcements/462730

[BlackPeter]

WHS management have a LOT to prove to shareholders.  In my opinion their cost out program needs to be a REALLY serious one and management have to prove to shareholders that this is a company that's still an investable proposition.  The jury will be out for quite some time.
https://www.nzx.com/announcements/462730

True - and the current report is best to see as how bad it can get. Revenue up by less than rate of inflation (i.e. it dropped) and earnings down. Not quite sure, what they made in Q1 2025, but overall they still had a loss in 2025. Dropping earnings on a loss doesn'tsound that flash.

Not quite clear what they intend to save ... sounds more like the plan to build a plan. Good to hear that they want to keep the fist line active, but lets face it - are they that active at the moment? Who remembers the last time they got good client support at the warehouse?

But hey, can't be that difficult to make money ... HLG (and even Briscoes) make money - and not that bad. 

Just follow whatever they are doing ...

[Basil]

The issue I'm alluding to in post #630 above is that it would seem Tindall's, (sorry Sir Stephen Tindall's) main goal is to sell ordinary Kiwi's the basics at the lowest possible price.  If you read through their annual reports this goal seems to be at the forefront of everything they do. 

You'd easily be forgiven for wondering if the current arrangement of basically trading at break even, (ostensibly not unlike a giant chain of not for profit Salvation Army shops but in this case selling new stuff), fits the Tindall foundations goals perfectly ?  Not only are they selling products to ordinary Kiwi's effectively at cost and helping Kiwi customers make ends meet, they're employing about 11,000 staff about 700 hundred of whom earn over $100K so by classic "B Corp" goals where staff, customers and the planet are just as important as shareholders, this company is kicking some really serious social do-good goals !

No doubt the board will farewell Joan Withers with a huge thankyou for her contributions over the years.  I will remember her for being in the chair when WHS was giving ~ $60m of Covid subsides back to the Govt because Jacinda told WHS off for not being a good corporate citizen and for being so supportive of the "rocket scientist" Nick Graystone who flushed well north of $100m down the toilet with his failed agile and the market strategies not to forget Torpedo 7. 

My opinion is WHS is a tired old brand that's been losing market share for years.  K Mart, Panda Mart, Costco, Temu and others are steadily eating their lunch and the WHS is in systemic decline.

[Shareguy]

Agree Basil, was there today, Warehouse more staff than customers and K mart pumping. Hopefully they survive.

[Minimoke]

Agree Basil, was there today, Warehouse more staff than customers and K mart pumping. Hopefully they survive.

I decided spur of the moment to buy a book the other day. First paper one I have bought in years. Vaguely recalled warehouse sold books so popped into one to see if they had it. It took a while to find the location but Kudos they did have it.

But other than that it seemed a very tired, half empty store with, as you say more staff than customers. And those staff seemed a bit over it.

My local Mitre 10 is my favourite shop and I am there pretty much every weekend. The difference in layout, vibe, selection, lighting and customer service is like chalk and cheese.

[Auto Rower]

Perhaps if the C E O  gets his way the lighting /vibe might improve somewhat https://www.youtube.com/watch?v=QTFsZGDMWyo&t=281s
 also the book prices and selection are a huge improvement especially for New Zealand

[Minimoke]

Perhaps if the C E O  gets his way the lighting /vibe might improve somewhat https://www.youtube.com/watch?v=QTFsZGDMWyo&t=281s
 also the book prices and selection are a huge improvement especially for New Zealand

I don't know about that. They have a very weird marketing plan. You can spend (why would you?) $39.00 for "A Different Kind Of Power: A Memoir by Jacinda Ardern" (grossly over priced in my opinion). And then you can buy the second one for 50% off. Why would they think their shoppers so disliked people they think an Adern memoir would make a great gift.

[Auto Rower]

I don't know about that. They have a very weird marketing plan. You can spend (why would you?) $39.00 for "A Different Kind Of Power: A Memoir by Jacinda Ardern" (grossly over priced in my opinion). And then you can buy the second one for 50% off. Why would they think their shoppers so disliked people they think an Adern memoir would make a great gift.

Ha funny that minimoke perhaps they knew you would be popping in to check the prices and relevant staffing levels again .
 Although I must agree that any Ardern book is overpriced
 

[lorraina]

I had to buy the wife "A different Kind of Power" by Jacinda Ardern because there were 265 in front of us on ChCh library's HOLD list.Yes bought it from WHS for $29.99 as it was $49.99 elsewhere.
Also had to buy her "Nobody's Girl ",by Virginia Giuffre as were would have been No.254 on ChCh library's Hold list Paid $40 for it at local Paper Plus as WHS did not stock it when I was buying.Had to wait 10days as it had sold out the day it was released.
Wife enjoyed Jacinda's book and she lent it to a friend before I had a chance to read it.She did the same with "The Rise & Fall of the House of York".

[Ferg]

I popped into the local Warehouse for some gardening and fishing items.....the price & quality is actually ok and they had a buy 1 get 50% off #2 deal.  I also got a good wetsuit at about the quarter* the cost of a Rip Curl equivalent.  I'm converted.

*Body glove 3/2 steamer cost me $149; Rip Curl equivalent is priced from $380-$830 (I kid you not!)
https://www.ripcurl.co.nz/collections/mens-steamers?filters=mfield_feature_thickness%3A3%2F2+mm
https://www.thewarehouse.co.nz/p/body-glove-mens-full-wetsuit-blackgrey/RM110164492-1M.html

It is probably discounted given winter is over but I don't mind buying and holding for 6+ months given I won't be surfing next winter in my spring suit!

[Minimoke]

I popped into the local Warehouse for some gardening and fishing items.....the price & quality is actually ok and they had a buy 1 get 50% off #2 deal.  I also got a good wetsuit at about the quarter* the cost of a Rip Curl equivalent.  I'm converted.

*Body glove 3/2 steamer cost me $149; Rip Curl equivalent is priced from $380-$830 (I kid you not!)
https://www.ripcurl.co.nz/collections/mens-steamers?filters=mfield_feature_thickness%3A3%2F2+mm
https://www.thewarehouse.co.nz/p/body-glove-mens-full-wetsuit-blackgrey/RM110164492-1M.html

It is probably discounted given winter is over but I don't mind buying and holding for 6+ months given I won't be surfing next winter in my spring suit!

I didnt even notice the Warehouse had a Garden Section. I just pop down to Miter10 because they have a huge selection of plants, tools and fertilisers etc.

I suppose I'm a bit of a fishing snob and wouldn't even think about buying gear from the warehouse. I'd sooner support my local specialist shop such as Fisherman's Loft whose staff have knowledge of the fishing scene. A test would be to ask a Warehouse staff member which lure they thought best for a river run Rainbow. (and if you want to learn how to sell stuff in a retail environment visit a fishing tackle shop - they are masters at extracting every dollar out of your wallet!)

[Ferg]

I didnt even notice the Warehouse had a Garden Section. I just pop down to Miter10 because they have a huge selection of plants, tools and fertilisers etc.

I suppose I'm a bit of a fishing snob and wouldn't even think about buying gear from the warehouse. I'd sooner support my local specialist shop such as Fisherman's Loft whose staff have knowledge of the fishing scene. A test would be to ask a Warehouse staff member which lure they thought best for a river run Rainbow. (and if you want to learn how to sell stuff in a retail environment visit a fishing tackle shop - they are masters at extracting every dollar out of your wallet!)

Slightly off topic sorry....

I should probably do a price comparison but even with the SmartMate card I find the Mitre 10 prices high.  I did a quick mental check versus Bunnings for ceramic outdoor pots and The Warehouse was ok.

Fishing...I was using The Warehouse for the most basic of items but I noticed a number of brands were the same as the local fishing stores.  I hear you about sales....the fishing (and kayak) guys are good.

But back to the Warehouse.....

The market hasn't reacted to the latest trading update by the WHS
https://www.nzx.com/announcements/462730
which in my opinion was pretty good in the circumstances...it was ok...it wasn't bad...I've seen worse. BTW these phrases are not synonymous when discussing the quality of a meal....

[Fiordland Moose]

I had to buy the wife "A different Kind of Power" by Jacinda Ardern because there were 265 in front of us on ChCh library's HOLD list.Yes bought it from WHS for $29.99 as it was $49.99 elsewhere.
Also had to buy her "Nobody's Girl ",by Virginia Giuffre as were would have been No.254 on ChCh library's Hold list Paid $40 for it at local Paper Plus as WHS did not stock it when I was buying.Had to wait 10days as it had sold out the day it was released.
Wife enjoyed Jacinda's book and she lent it to a friend before I had a chance to read it.She did the same with "The Rise & Fall of the House of York".

A book about 'the rise and fall of the Warehouse' would make for good reading....by say some NBR jurno or Jenny Ruth. Plenty of material there. I'd give it a read.

[Minimoke]

Slightly off topic sorry....

I should probably do a price comparison but even with the SmartMate card I find the Mitre 10 prices high.  I did a quick mental check versus Bunnings for ceramic outdoor pots and The Warehouse was ok.

Fishing...I was using The Warehouse for the most basic of items but I noticed a number of brands were the same as the local fishing stores.  I hear you about sales....the fishing (and kayak) guys are good.

But back to the Warehouse.....

The market hasn't reacted to the latest trading update by the WHS
https://www.nzx.com/announcements/462730
which in my opinion was pretty good in the circumstances...it was ok...it wasn't bad...I've seen worse. BTW these phrases are not synonymous when discussing the quality of a meal....

There is more to retail than price. I haven't tested these in the warehouse because I dont shop there often enough. But If I go to say Mitre10
- there is some one the at the door to welcome me
- the Customer service desk is right there
- I can ask any staff member where I would find 9 inch nails and they will say Aisle 11 bay 6.
- When I get to Aisle 11 bay 6 I will probably have 3 choices of 9 inch nails to select from.
- Because all the shelves are full I might pick up a pack of 6 inch nails while I  there (I am easily tempted!)
- It might dawn on me I need a new hammer and that aisle is logically located near to the nail isles.
- Going through checkout is fast because they are staffed relative to customer demand.
- I can pick up a sausage and donate to a local community good as I make my way to the car.

All this will no doubt cause teh price to be higher.

If I want to shop based on price I'll just use the internet. Temu will probably be the right place to go.