I was thinking to myself the other day, I do a lot of that these days, what would The Warehouse Group Ltd [WHS.NZX] have to do the drag itself kicking and screaming into the 21st century.
Kicking and screaming because I don't think that the head guy, Nick Grayson has the balls to do it. It would require an initial cost of some many of millions of dollars "changing tack" but after that most of the initial cost would be pure profit.
What got me thinking was that,and I don't know about you but I havent bought a CD, DVD or any sort of content from The Warehouse - and that's where I used to go to get these things because they were cheaper than anyone else. The same goes for all those nic knacks they sell - you can buy mobile phones and radios etc generally cheaper at J B HI FI - and increasingly Amazon.
The same goes for books and a whole host of other depts within The Warehouse Roof.
If they did their own figures and I'm sure they have done them already, they could already work out which depts are losing money and ditch them.
You would automatically ditch the entertainment area, hardware, home goods and Jewelry and perhaps the toy area and bring within the Warehouse Roof the Warehouses Stationery brand, their Torpedo brands and Noel Leeming that they have a distinct advantage over the rest of the competition in New Zealand - at the moment.
That way they could survive in the face of specialty stores like Hallenstein Glasson Holdings Ltd [HLG.NZX] that continue to innovate online after 130 years in business and the impending deepening of Amazon's clutch on the public wallet.
You would have to drastically cut staff. Perhaps by as much as 30% AND middle management MUST go. They have far too many - as much as 80%. You don't need 1000 pen pushers looking over your daily sales figures and getting the troops on the ground confused by what comes out of head office.
Something is seriously wrong here. Staff need to be drastically retrained in the art of the sale because last time I looked a "how much does that cost or does that come in a different colour" were met by a impolite strug of the shoulders.
From working at Pak N Save - ironically one of The Warehouses biggest shareholders - for the last 8 months i have found out - whether a like it or not and I do like it, that the customer is no1 and your fellow workers are you mates and if you don't like it you are politely asked to leave.
I would suggest at the cafeteria at The Warehouse all is not what it could be or should be and there is a lot of backstabbing. These people should leave first.
It is about people first in the retailing arena, your customers and your people.
The rest should take care of itself.
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