Warehouse buys Noel Leeming Group

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#729920 10-Dec-2012 18:30

DarthKermit: In PN where I live, Noel Leeming and Bond & Bond are right next door to each other.

As for the aquisition news, as long as NL don't start selling junk like Transonic I'm not fussed.

Ditto Lower Hutt.

And no to Transonic!

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mattwnz

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#729966 10-Dec-2012 20:39

lchiu7:
DarthKermit: In PN where I live, Noel Leeming and Bond & Bond are right next door to each other.

As for the aquisition news, as long as NL don't start selling junk like Transonic I'm not fussed.

Ditto Lower Hutt.

And no to Transonic!

Don't they have the two brands, due to the brands being sold in the store. eg At one time F&P were sold in one but not the other.

Ragnor

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#730029 10-Dec-2012 22:40

DarthKermit: In PN where I live, Noel Leeming and Bond & Bond are right next door to each other.

As for the aquisition news, as long as NL don't start selling junk like Transonic I'm not fussed.

Yeah in Newmarket in Auckland they are directly opposite each other on Broadway... it's dumb.

mattwnz

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#730051 10-Dec-2012 23:55

Ragnor:
DarthKermit: In PN where I live, Noel Leeming and Bond & Bond are right next door to each other.

As for the aquisition news, as long as NL don't start selling junk like Transonic I'm not fussed.

Yeah in Newmarket in Auckland they are directly opposite each other on Broadway... it's dumb.

Not for them though. It obviously works for them. I had heard that the B&B and LN ,when they are next to one another, the storage areas are often joined. Not sure how true that is, but would make sense.

Jarno

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#730052 10-Dec-2012 23:55

DarthKermit: In PN where I live, Noel Leeming and Bond & Bond are right next door to each other.

In Nelson there used to be a B&B two doors down from a Noel Leeming. Then they changed the B&B to a Noel Leeming, making one store an appliance specialist and the other a technology specialist. An interesting solution to the duplication problem I think.

To me the NL brand feels more up to date than the B&B brand, so my guess is that Warehouse is going to consolidate them under the NL brand.

mattwnz

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#730053 11-Dec-2012 00:05

Jarno:
DarthKermit: In PN where I live, Noel Leeming and Bond & Bond are right next door to each other.

In Nelson there used to be a B&B two doors down from a Noel Leeming. Then they changed the B&B to a Noel Leeming, making one store an appliance specialist and the other a technology specialist. An interesting solution to the duplication problem I think.

To me the NL brand feels more up to date than the B&B brand, so my guess is that Warehouse is going to consolidate them under the NL brand.

I would doubt it, because that then wipes a lot of goodwill that has been built up over the years in that brand, hence lowering it's worth. They paid a pretty lage sum for both brands. I think it is more likely we will see them have better branded / higher quality products in their big red stores.

Dunnersfella

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#730054 11-Dec-2012 00:09

Bringing software into Noel's / Bond's in a big way is a very real possibility.
That move alone could really hurt JB's progress in that market, as could the growth of the Warehouse's on-line music service once / if it is extended into the Noel's + Bond's brand.

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Loaf

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#730061 11-Dec-2012 00:34

I've never really liked Noel Leeming or Bond & Bond.

Noel Leeming often has un-competitive prices, selling at the recommended retail prices of manufacturers (so its never the best place to go when you want bang for buck). They also usually have older products, I remember in 2007 they would always take forever to get the latest Mac products in and would try to get rid of outdated Mac products-- they tried to sell me an old laptop in a bashed case for more than DSE was selling the newer Intel MacBook.

And Bond & Bond is just a facade they stick directly next to Noel Leeming shops, as a way of getting unsuspecting people to go next door, see the same product for cheap and think "OH BOY" lol.

JimmyH

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#730835 11-Dec-2012 21:37

Loaf: I've never really liked Noel Leeming or Bond & Bond.

Noel Leeming often has un-competitive prices, selling at the recommended retail prices of manufacturers (so its never the best place to go when you want bang for buck). They also usually have older products, I remember in 2007 they would always take forever to get the latest Mac products in and would try to get rid of outdated Mac products-- they tried to sell me an old laptop in a bashed case for more than DSE was selling the newer Intel MacBook.

And Bond & Bond is just a facade they stick directly next to Noel Leeming shops, as a way of getting unsuspecting people to go next door, see the same product for cheap and think "OH BOY" lol.

I have had the same experience several times at Dick Smith and (especially) at LV Martins - where they recently had a "special" on something with the price reduced to $649, when other retailers are selling the same model for $499. Most retailers will shift old stock and sell at a premium when they can, so for a bigger ticket item it pays to not only research the product but also to check prices online before buying.

Loaf

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#730866 11-Dec-2012 22:00

Mmm thats true, you always have to shop around. I guess Noel Leeming has always just been more prone to this, could just be coincidence.

tdgeek

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#730928 11-Dec-2012 22:36

I am picking:

1. Sell B+B, Land and Buildings, nice cash, or expand as many Incl here in ChCh are next door

2. Bring NL offerings into The Warehouse stores.

3. "Management Team staying" means many admin staff will go, absorbed into a central admin centre = efficient

4. Prices will be good, watch out other electronics retailers.

The Warehouse has a lot of stuff, it will now have a lot more of better stuff. One stop shop.

Dunnersfella

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#730957 11-Dec-2012 23:17

One thing that struck me as interesting...
Was that The Warehouse runs at around 7% margin, whereas Noel Leeming is under 2%.
So while people seem to think that prices will drop because of the margin, I'd suggest that aside for the initial 'We now sell these products' promos, things won't necessarily get any cheaper. After all, if there's no money to be made, then what's the point?
Better prices via more buying power 'may' come into it, but if the Warehouse simply passes those savings on to the consumer or not, well, that would be debatable.

tdgeek

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#730975 11-Dec-2012 23:28

Gross margin or net margin? Net I assume.

Absorption of admin expenses will lessen the NL expense ratio per sales. Simplistically, WH admin is 10 staff, NL is 4, both are 11. Net margin will increase, alongside other efficiencies from combinig resources and reducing what will be surplus expenses. Long term, a potentially powerful, all encompassing retaill base. I'd probably be concerned if I was an employee of HN.

sbiddle

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#731048 12-Dec-2012 07:31

The Warehouse can't run a retail business to save themselves, I can see other electrical retailers jumping for joy at this news.

Just wait till The Warehouse 1982 era business model of staff hand pricing goods with a pricing gun is implemented. I predict the the odds of seeing the price at the till differing from the sign and price on the goods will also immediately increase overnight.

Dunnersfella

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#731053 12-Dec-2012 07:51

tdgeek: Gross margin or net margin? Net I assume.

Absorption of admin expenses will lessen the NL expense ratio per sales. Simplistically, WH admin is 10 staff, NL is 4, both are 11. Net margin will increase, alongside other efficiencies from combinig resources and reducing what will be surplus expenses. Long term, a potentially powerful, all encompassing retaill base. I'd probably be concerned if I was an employee of HN.

I'd be jumping for joy if I was a Noel Leeming employee (yaaay payrise, finally earning above minimum wage!) and running for cover if I was working at Bond & Bond's.
I don't know if Hardly Normal / Smiths City / JB Hifi / Powerstore / LV Martin / Dick Smith etc staff are 'concerned'... change would be something they'd have to be used to by now, surely?
Of course, not everyone is impressed with the move...
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10853304

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