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Take that one up with Buffet Kal although I assume you mean the dot com boom at new year 1999. 6.930points although the last time I looked it was at 7032 points on Friday so technically you are incorrect not to mention total divi returns but that is nit picking and the old Warren boy was right there is no time frame.Although even with indices buy low sell high as you know nothing stays high forever.
“ALDI, LIDL, Primark”
All these companies you are obsessed with are discounters …. They are no frills businesses offering no quality to their product. They aim to sell as much as possible to the less well off in society. They wouldn’t be able to successfully run a digital strategy because it would erode their tight margins too much.
You’re not comparing apples with apples. It’s like comparing Ryanair or easyJet with a middle of the road airline. They are not competing for the same quality of customer.
I think that is much the same as PP1 but as I have said before if you die you could leave family a lot less and I don’t have the patience although I trade short term a lot I prefer the big indices for anything long term as old Buffet says they always come back but as for shares many don’t .
Another one for Kal there looks to be an incoming death cross early next week on Abf this happened to boo in June in the 3.20’s look where it is now ,may not happen of course but if it does could turn into a small waterfall or a Niagra the way the markets are at the moment also it is now sell on all time frames.As for boo still struggling with one attack after another what happened to innocent until proven guilty ? The bottom may still not have been hit yet and now in uncharted territory IMO .
Hi Kellu - I agree with you actually re the larger kingfisher group tbf.
They’ve had to do a lot of work on the procurement side to bring their cost of sale down because until the pandemic the diy side was struggling.
I think their whole global corp buys from 100 key suppliers which in terms of purchasing power is great but doesn’t offer much choice to the customer.
Screwfix is the jewel in the crown.
The reason companies move online is because that’s where the sales are. Bricks and mortar are expensive.
The idea that taking on all the overhead is somehow better for margins is quite frankly laughable.
Plenty of companies operate omnichannel successfully. Look at Next or screwfix for two just off the top of my head. Physical stores restrict the amount of lines you can carry, as there is a finite amount if space.
That’s why if you’re a man with a 34-38 inch waste going to physical shops is pointless as they will rarely have your size as the stock will be sold out. We can carry four times as many lines online as instore.
Kellu - primark sells cheap clothes to folk without much cash - or people who want cheap work gear. Not too bad for kids and baby clothes either.
Boohoo is one brand in the portfolio. We’re now serving multiple segments. Primark needs the high density because they are selling unfashionable low quality low margin junk.
With every new generation of shoppers the desire to buy goods from physical stores erodes and the expectation to purchase their favourite brands increases, dramatically I would say. This will not reverse.
And I say that working for a company with a large bricks and mortar presence, albeit not in retail, who has spent the last five year developing an omni-channel offering. Online is by far our fasted growing channel. Some stores are basically now hubs for click and collect sales.
Then double the cost when you decide you don't want that item anymore or one of the items you stupidly bought as you didn't want to try it on etc. and have to go back to the shop (travel and parking again) to return the item. We could get into all the opportunity cost of time wasted by an individual.
your premise Kall, seems to be that it is cheaper to go B&M than online for the company to sell its goods.
That's fine in as far as it goes, but what does the customer want?
Say you live 5 miles from Primark (as that's your thing), £2 fuel, plus £3 parking to buy some or a single item of cheap clothes. Because the clothes are cheap expectation of quality and fit is low. Time spent? 2 hours from start to finish for £10 of goods increased by 50% to £15 with fuel and parking.
Then we could factor in the weather. what if it is freezing or raining or perhaps very hot and you would rather be in the park or garden rather stuck in Saturday shopping traffic? Per haps you wanted to buy the item sooner but only have the weekend to get to the shops, and you have better things to do than give up half a day nearly just to buy a top?
Cost is important to both the retailer and purchaser as is convenience, as is value, whether real or perceived. Its not quite as black and white as you constantly [odt that Primark fantastic boo (and everybody else )rubbish.
If you truly believe what you post (and I m personally not convinced), then having such a limited portfolio is a very, very high risk strategy indeed.
(What will you do if, but more likely when, primark is spun off from ABF?)
If the customer has used BH before they will have a good idea about fit and quality.
Amazing Kalumama...................!!!! Only person I have come across that can put positive 'spin' on such bad news from the high street. The high street has been in demise for a number of years now......because of publics change in attitude to buying on line. How can you say that on-line will suffer in the long term when on-line sales has grown exponentially for so many years now. I am afraid you are an 'on-line' denier!!! I can just imagine you spouting, a few years ago, 'Amazon ....crazy....it will never take off.....why would anybody buy shares in such an out-fit beats me'...........from nothing to one of the biggest companies in the world in a decade or so!!! I, like many on here, know the risks of being a Boohoo share holder but I am fully confident in them over coming all of the negatives eventually.....They will continue to expand under Kamani's leadership, so I have no worries about the current SP!!
https://www.msn.com/en-gb/money/other/price-of-covid-lockdown-spectre-of-ghost-shopping-malls-haunt-britain/ar-AAMITgY?ocid=msedgntp
Shopping Malls turning into ghost towns!!