WHS - Warehouse Group

[winner (n)]

Wonder how WHS investment in Zoom Pharmacy is going ...... moved them into the ecology and zoom customers buying zillions through The Market?

[Basil]

Winner posted this back in 2004 -

Amazing that WHS price is still the same as it was 5 years ago

Imagine some poor fella called Sid who went bush for 5 years in November 1999 happy that his WHS shares were $3.80 and came out today and found they were still about $3.80.

Sid asked his sharebroker what has happened to the WHS over the last 5 years - his sharebroker told him

**** Store numbers have increased from 87 to 351
**** Sales are nearly 2 1/2 times what they were - increased from $0.9 billion to $2.2 billion
**** Net assets have more than doubled - from $170M to $357M
**** Now have 15,877 empoyees - 10.262 more than 5 years ago
**** Spent $500M on capital expenditure

So Sid replies 'Thats impressive, they must be making heaps now'

Oh no his sharebroker told Sid - their profit has only increased from $54M to $61M in those five years ... and the earnings per share has gone from 19cents to 20 cents.

Poor Sid - he's incredulous. All that investment and all those extra staff and they are only making the same as they were 5 years ago.

Who does he blame? He can't blame investor sentiment because WHS is still trading at 20X earnings - it hasn't been rerated downward. Sid says to himself that is just as well as if they had been rerated down they might have only been worth $2-$3. At least he still has his capital and he has had a few piddly dividends put in his bank account but inflation has taken care of those.

Sid asks his sharebroker 'Have the WHS really stuffed up somewhere along the way?'

Sid's sharebroker tells him 'No not really. They are investing for the future and all should be right in few years and your WHS shares should be worth $10 each in 5 years'

Sid thinks thats good and decides going bush for another 5 years might be the caper

What will Sid's sharebroker tell Sid when he comes back to civilisation in 5 years time?

And followed it up a few months later -

Sid's brother died and Sid came out of the bush for the funeral. While at the funeral he asked his sharebroker how his WHS shares were going ... must be heading back to $10 by now he asked. 

No the sharebroker told Sid .. they are actually worth about 20% less than when you came out of the bush last November

But don't fret said the sharebroker. They are changing the way they do business in NZ, going to go into groceries and think that Woolworths coming into NZ could be good for everybody. The shareprice will go back up to the old heights of old ... it just keep keep going down down down ....

And Sid has gone back to the bush happy as Larry his nest egg is going to grow ....

All this time later...and all that capex and all that so called growth and investment in systems and what's changed?  Just as well with Nick's obsession with all things omnichannel it's going to be different going forward eh 

Funnily enough in the same vein as Winners story I was cruising up the harbour the other day and the thought came to me, what is the one share I would be most happy to own if the market was shut for the next 10 years ?  The answer came to me in a flash, it was so obvious.    You guys figure it out, I've posted a lot about it lately.  Hint, it's not the WHS lol

[Waltzing]

" civilisation "

well there is a new concert venue being built in Hamilton.....

some time in the years ahead an orchestra will apparently be able to perform a concert in the WAKA TOO.....

Gosh amazing...

WHS not so amazing.... but then again bringing all those tech platforms together along with developing the MARKET is a big job...

maybe to big...

[KW]

Noel Leeming stuff is just getting too ridiculously expensive to buy.  Went in to look at the new Samsung phones, but the idea of paying $3000 for a phone, that will only last 4-5 years, was too much to stomach.  Same for the Apple products.  And a new Dyson vacuum is now $1500!

I bought a freezer from Trade Depot last year.  Great service, fast delivery, cheap price.  I predict big things for them.

[Basil]

Noel Leeming stuff is just getting too ridiculously expensive to buy.  Went in to look at the new Samsung phones, but the idea of paying $3000 for a phone, that will only last 4-5 years, was too much to stomach.  Same for the Apple products.  And a new Dyson vacuum is now $1500!

I bought a freezer from Trade Depot last year.  Great service, fast delivery, cheap price.  I predict big things for them.

Buy one get one free.  Best to order your cordless Dyson online with Noel Leeming on sale like my friend did a while back.  A few days later it arrived and then a few days later another one arrived from a different branch.  Neither branch ever put their hand up for one of them back lol

[Waltzing]

WOW!!!!!!!

now thats a tech platform ...
 
.. have a great day out there folks and sunscreen up...

evenings till nearly 9 PM...

[winner (n)]

Poor Nick has a real dilema on his hands.

Change gets costlier every day; yet not changing can be costlier still.

And even while adapting to change, his marketing effort must reflect purpose of ' Helping Kiwis live better every day' and being consistent with the bargain image.

Hope Nick has great 2023 ........ all the best

[Hectorplains]

Poor Nick has a real dilema on his hands.

Change gets costlier every day; yet not changing can be costlier still.

And even while adapting to change, his marketing effort must reflect purpose of ' Helping Kiwis live better every day' and being consistent with the bargain image.

Hope Nick has great 2023 ........ all the best

Poor, not so much.  He's a "high level talent" (according to Chair, Joan Withers) and that's why he garners annual remuneration of over NZ$2m and other 'incentives.'  He got a "long-term incentive payment" (whatever that is?) of $1.3m just over a year ago.  A handful of other staff on the $1m plus salaries too.   WHS look management top heavy.  Lotsa chiefs, eh.  Yet on the store floor you can't find a staff member for help and they have very limited shelf stocking teams.  It's time for Nick to earn his pay.

[winner (n)]

Poor, not so much.  He's a "high level talent" (according to Chair, Joan Withers) and that's why he garners annual remuneration of over NZ$2m and other 'incentives.'  He got a "long-term incentive payment" (whatever that is?) of $1.3m just over a year ago.  A handful of other staff on the $1m plus salaries too.   WHS look management top heavy.  Lotsa chiefs, eh.  Yet on the store floor you can't find a staff member for help and they have very limited shelf stocking teams.  It's time for Nick to earn his pay.

F22 remuneration was $3,565,000

Up to a couple of years ago they disclosed the CEO remuneration of the CEO as a  multiple of the median wage of all employees (FTE basis)

Don't do it know ....must be too embarrassing

Shouldn't worry ....Nick has a very important and stressful job.

[Hectorplains]

F22 remuneration was $3,565,000

Up to a couple of years ago they disclosed the CEO remuneration of the CEO as a  multiple of the median wage of all employees (FTE basis)

Don't do it know ....must be too embarrassing

Shouldn't worry ....Nick has a very important and stressful job.

He was appointed back in January, 2016.  That's 7 years in the seat.  Previously, "At Sears, Nick was responsible for leading change from traditional retail into omnichannel and integrated retail, building profitable businesses, driving operational turnarounds, changing business models and leading high-performance teams" according to his profile.  I guess you could say he's given the first of these a nudge at WHS.  The other five remain underwhelming or not achieved.  Seems like Sears got better outcomes from Nick.

[Waltzing]

He will no doubt liken it to flogging a "dead horse"....

over paid by a lot .....

glad we dumped them .... still T7 is a source of outdoor stuff for many and will LIMP along in the race.

Note that the Garmin 5 F provides better data than the G6 which has a lot more functionality.

However the RTOS has a lot more to measure on its timer interval and therefore the G5 actually has more data on its data points as it measure less...

Less is therefore MORE!!!

T7 is a quick stop off to get your Glasses and measuring devices as you KIT UP.

There is a new ish platform for measuring and getting data in the US with a Portable junction box for up to 10 accelerometers.

This stuff hasnt got to NZ yet but in the US and Europe this new platform has over 11G registered developers.

In short NZ is a small country that if it doesnt get its ACT together will be left behind..

 The Market needs to perform and SOON.

[Basil]

His salary is glaring inconsistent with what the company makes each year.
When someone is paid that much they should have an extremely broad skillset and there should be no need for paying consultants tens of millions.
How can someone paid that much be so delusional to think he can build a profitable version of a mini Amazon in N.Z. ?

[BlackPeter]

Actually - I like the market (as a customer) which some posters here love to beat up so much. Saved me already lots of trips into town and delivery (for members and if you order for more than $50) is free.

Most stuff we order from local shops in the Warehouse group arrives already the next morning at our place - and even the stuff which comes from Australia or the UK or India is faster (and much cheaper) than it would be with (e.g.) amazon. If there are any issues with an overseas trader, than the market tracks the orders without prompting and resolves things (and so far they did well).

Great stuff.

True - I don't know, whether this all just contributes to increasing the Markets losses - ... but then - if customers like a service you can normally make as well money with it - after some initial investment and ramp up time.

[Waltzing]

YES BP agree and KIT has turned up by delivery order via T7...

not saying one doesnt use it.

But the salary is far to high and not linked to Group Profit...

maybe cut the salary in half and award shares options....

to the team not just him....

[BlackPeter]

His salary is glaring inconsistent with what the company makes each year.
When someone is paid that much they should have an extremely broad skillset and there should be no need for paying consultants tens of millions.
How can someone paid that much be so delusional to think he can build a profitable version of a mini Amazon in N.Z. ?

No comments on his salary ... and I don't know either whether the market experiment will end up to be financially successful.

However - it is do-able. Remember how TradeMe used to eat eBay's lunch here in NZ?