Surprising that their Masters didn't do well given the recent [still going?] property boom. Maybe not so surprising given the deal they made with Anchorage for Dick Smith.
But true, there's a lot of value in WOW's assets... businesses are supposed to screwed up now and then... Their screw ups haven't kill them, only made them more likely to be Wal-Mart's new beachhead into Australia.
WOW's latest TV ad attempts to promote company based on the spurious claim that, once you reach the checkout, your bags will be "packed with pride".
When that's your claimed point of difference, you're better off not advertising. Who on earth wrote that rubbish?!
Q: "Why do you shop at Woolies ma'am?"
A: "Well Aldi have much better prices, their fresh produce is just as fresh as Wollies, but you know I can't help but marvel at how the Woolies checkout chicks shove the stuff in the bags with such pride. Packing pride is very important to me".
I'm in W.A, and Aldi have just opened, but on first observation it is cheap.
But I don't see a full weeks shop in trolleys.
It seems a bit like the low cost reject shop format. I'm not sure they are going to steal a lot of market share, if the majors get serious.
The trick is not just the cheaper prices it is also the colorful flyer they offer you which has weekly bargains and causes heaps of people who otherwise would not even go to the supermarket on a particular day to go there. Then the people buy other stuff and get used to the Aldi set up and getting pretty much all they want.
If WOW were smart they would setup a similar thing offering bargain stuff to get people enthusuasticly going there. Go on a Saturday morning it can be a frenzy as many bargains don't even last till lunch time.
Very clever!! (I shorted a bit of WOW today)
They have already made the biggest dent in the duopoly since conception of the duopoly.
The trick is not just the cheaper prices it is also the colorful flyer they offer you which has weekly bargains and causes heaps of people who otherwise would not even go to the supermarket on a particular day to go there. Then the people buy other stuff and get used to the Aldi set up and getting pretty much all they want.
If WOW were smart they would setup a similar thing offering bargain stuff to get people enthusuasticly going there. Go on a Saturday morning it can be a frenzy as many bargains don't even last till lunch time.
Very clever!! (I shorted a bit of WOW today)
Did WOW have Home Hardware before or after Masters?
Either way, they should have concentrated on one and one only. Now their flogging both off, prft...
FWIW: the name Masters (in this context) grates me the wrong way, dunno why, just does...
I would think WOW atm is still quite over priced, given the competition it faces in both Coles & Aldi; As I'm sure other users have previously noted.
Supermarkets business:
Struggling heavily and has struggled for the last couple of years due to not providing customers the perception of 'value'. Have countered Coles considerably in this space, however Aldi has now open in SA and WA.
While I believe the turn around in the supermarket business is well and truly under way, it is likely the rewards won't be recognised straight away.
Endeavour Drinks Group is performing quite well and is the shining light for WOW, likely to continually report strong growth going forward.
Big W is currently under transformation however competing with the likes of Target and Kmart will be extremely hard; and seems to fail to identify where it fits in the midst.
Overall WOW's business core business is supermarkets, which is yet to deliver the results of the 'Glory day's' - and while the CEO who (IMO never wanted the job) believes that green shoots are appearing, I don't think they will be enough to stop another substantial fall in the short term.
A fall to 18.5 would not surprise me.
Aldi's sales growth stagnated despite them opening more stores, I think they are starting to struggle now Coles and woollies have decided to push back.
Sorry about the delay been pretty busy.
Click to Expand
This is a WEEKLY CHART
View attachment 60582
Not a bottom but target
Between $23-$24
SPC news not good. If WOW start importing canned fruit from overseas I'm hopeful customers will make the choice to shop elsewhere. Who could forget the hep-A infected fruit that Creative Gourmet imported from China? This is the sort of crap that protectionist policy can prevent.
What will SPC do now? Probably what many premium quality producers are forced to do in Australia - jack up prices and sell to the Chinese.
What will SPC do now? Probably what many premium quality producers are forced to do in Australia - jack up prices and sell to the Chinese.
And that's a problem?
Is SPC really considered a premium quality producer? I always thought they were at the cheap and nasty end. Isn't all canned fruit?
I thought they supplied fresh produce as well. I'm back in the 1920's. Good, ship it all to the highest overseas bidder.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?