Adrian Hargrave, CEO of SEEEN, explains how the new funds will accelerate customer growth Watch the video here.
Perhaps this is the way forward: Robotic, unemotional results.
But non the less: very good! Especially the online LfL +55% vs 3 years ago!
https://www.tescoplc.com/news/2022/1q-trading-statement-202223/
I find 80% business sales and indeed gross profit comes from 20% of range.
I was in a medium sized retailer yesterday and I counted 41 different cooking oils ! Why??? Is it a museum for suppliers?
It’s typical I can tell you!
I think it’s a great time to simplify, rationalise/delete.
Those businesses who genuinely deliver great services for theirs and potentially others customers will win. Quality and service with a market are usually rewarded.
Product range rationalisation started during covid-where close to 30% of range disappeared in small to medium size businesses and 10% in larger operators.
Shelf capacity in stores has to increase for fast movers as just in time efficiencies become weaker plus range rationalisation.
Good better best ranges has always helped balance gross profit but the depth of products has reduced and will reduce further.
Every cost line has to be under scrutiny and operations simplified or deleted.
GP/Wages/supply chain/Energy/services all under pressure and ebitda will offer less opportunity for capital spend on new business.
I think more stores in groups will close as profit breakpoints increase, independent retailers will crash first purely because they can’t pay the energy bills.
Retail will see more consolidation from now.
But the m/cap reduction of really good businesses will be irresistible for many PE firms.
Money will go to money!
That’s good news Chilting, there are many options and perhaps many will be adopted at the same time depending on price movements.
Average unit costs moving through retailers own supply chain are usually charged onto suppliers if they wish to use retailers facilities, as very little goes directly from suppliers into larger retailers. These unit costs (case movement) have increased 30% ytd.
This can’t carry on and just in time is under some threat and frequency of deliveries from DC to stores are being reduced further. Product ranges are also being reduced so range complexity is simplified and space allocations of retained sku’s are increasing.
Gross profit is in my view the largest impact on P&L as suppliers have been pulling up the draw bridge since before covid.
Retail is a difficult place right now that is for sure.
Investors are nervous, holders make money from sellers.
Seen these issues many times over, these trigger points to macro economic and geopolitics can and will turn the other way.
Mks have to keep adapting but anything in this world that reduces the use of fossil fuel is great news and eventually will reduce operating costs.
Keep the faith!
Totally agree Pokerchips.
The sp is an absolute steel with Mks fundamentals!
I can’t see any shorts over 0.50% !
It should also be noted that there are no sizeable shorts on Mks now, they appear to staying at arms length. This time LY 1.7%
The point may well be true.
However, time for PI’s maybe limited as PE, and even VC are far more savvy at spotting potential.
The sell off due to macro issues not just Mks but retail as a whole and most other sectors.
Mks moving averages are irrelevant atm until there is some volume.
Charting has very little to work on, across the board!
We’re in traditional summer low trade, this is not unusual, the war on the edge of Europe effecting energy/wheat/sunflower, and the transition to low carbon is not usual.
Things will get better.
https://www.retailtimes.co.uk/dhl-introduces-20-bio-lng-trucks-into-ms-fleet/
Ditto Carrington!!
Ridiculous price
Fenders, I find averaging down buy price over time helps gain the benefits from macro impacts. The odd 10-15p av price reduction prepares the holding for upswings as results announced, any hopes of an end to Russia’s attack on Ukraine would benefit Mks dramatically for example.
I don’t post anywhere else and I enjoy reading the posts on this site, and new contributors come frequently. One day it will bore me and I will stop! I read everything on retail across the World and pharma as both intrigue me.
Have a great weekend! Good luck.
Bless you and you’re family business Fenders, I hope they bought at the right entry price.
I hold over 200 thousand Mks equity as it stands and will add if it drops in these extremely weak global markets.
Personally I am down on my investment here this year but up on others as I hold defensive stocks such as pharma. So balanced atm.
My belief is Mks was badly led under Marc Bolland to the extent that the company then was left completely knackered.
Lots has been done over the last 3 years to turn this around, very confident in the leadership with Archie watching over things closely. It’s digital strategy in particular holds significant incremental value, together with an improved engineering in finance.
Removing bank a great move too!
Property significantly more fluid and still 30 plus more elephants to go.
EPS 0.15 can go much higher at 0.25 in my view.
Debt reduction great!
But on the whole I also see the company prime for a takeover which is the core reason for holding.
Good luck
Good one’s Chilting!
Remember bamboo too JJ! But keep in pots! Phyllostachys bissetti 6ft fully grown, and useful in cane supply.
Pre market for US open looks ugly! Get ready for another raid.
Although volumes in general are typicality low through the summer as investors have already set their positions. Retail of course has never been a safe haven unless there are specific circumstances.
Mks has lost sp ground not because it’s done much wrong recently, the geopolitical and macro monetary is driving the sp.
On a positive note the same effects improving will have the reverse effect!
Mks has a lot going for it. Dyor
Clinique has landed well in Mks, 500 products mainly sold through online/click and collect. Plus 30+ stores have counters.
Just another example of third party success. Building a destination footfall for stores and digital! Well done to Mks Mark Price!!
I love what Mks are doing right now!
Sorry occasionally twice a year April/ sept feed a bit of liquid seaweed diluted solution.
Hi JJ, I hope you are keeping well and enjoying life.
I wouldn’t put the C-Beech in direct sunlight, lovely tree and they love humid but well drained soil.
The root system is really shallow but will develop a huge 3 metre trunk at say 160-200 yrs. Normally grow 4m high after 10 yrs, up to 50 metres.
I see them often in deep woods on their own , they don’t survive around faster growing like sycamore.
A silver birch would probably do better where you are thinking about if you don’t mind me saying.
The Copper is cultivated remember so not as sturdy as the native variety. SE England is their rightful home.
It’s also early or late planting now for any young tree because it’s always better to avoid summer planting. So plenty of leaf layers in the soil and some sand mixed in to get the drainage. Water regularly-wherever you place them but not floating.!
In first 2 years cover trunk in winter to avoid frost too.
Good luck with them and the project JJ