Gl, yes, I'm aware of this. Perhaps you've misunderstood my comments? They will have retail stores that aren't in the high-street, if that's where the confusion has come from |
Exactly, I can't see anyone taking over the stores and carrying on as if they were WHS as that format has been unsuccessful, so I agree most likely a positive for Card who will pick up more customers. |
If they can sell all the high street shops to someone who wants to change their use that is great for CARD. The high street won't be further hollowed out, and there is also less competition for CARD in cards, gifts, party items. A real win situation for CARD. |
It's not buying all of SMWH Juliet just the high street stores.
85% of business with SMWH is travel shops in airports |
HMV?! Bensons for Beds?! Hobbycraft?! |
Looks poised for a breakout above the 200 day MA (~100p) to me. That would be a very bullish move if it happens. I may be tempted to take a few more...hmmm. |
Waking up.. |
Peel hunt suggesting 100 to 130m for the high street biz. Hilco and alteri front runners |
Perhaps there's some crossed wires and the bidder is Victoria 'Secrets'! 😉
I'll get my coat. |
These 'secret' talks seem to be broadcast to the world. I'm starting to get the impression that they are somewhat desperate for anyone to take it. Maybe I'll give them a call and offer them a tenner paid in monthly installments over two years or I'll ask if I can buy it on Klarna. |
Am I missing something here? Apparently, Modell Capital are looking at, not bidding, for Smiths retail shops and on their website, they have Paperchase down as a 'successful' transaction. They went into admin.. 🤔
Why on earth anyone would be looking at buying Smiths and not Card is beyond me. |
Am I missing something here? |
Closure of stores would be good for Card and also Card could buy some stores where they currently don't have a presence. |
WHS:
"The company could confirm the plan in a statement to the London Stock Exchange as early as next week, according to Sky News." |
There maybe an announcement tomorrow. Let's see. |
WH Smith selling their high street stores... another competitor potentially leaving the scene? |
I get what you're saying but I just can't see it being a threat. The chances are that at least 10% of their stores will close before someone puts a bid in, maybe more.
I don't think people will be too keen. It doesn't seem like an easy win. Maybe you'd buy the ones outside the traditional high-streets and leave the rest, which would probably do better as primarks or something given their size! ;) |
All takes time, Meanwhile card has the reputation, supply chain and good management to continue their growth plans.Even with good fortune it will be 24 months before anything turns around at smiths. |
As we grow Travel, the High Street division will become a smaller part of the overall Group. This division, which now accounts for around 15 per cent of full year Group profit from trading operations, is profitable and cash generative.Pre ifrs16 basis but still. Also, need to look out. Reputation, leases, product offering etc. will go through a big shake up. |
And of course there may well be lots of upside here if card were to make an audacious bid for FP |
WHS is not cash generative in their high street offering - it's quite the basket case, hence the company wanting to jettison it. Their online offering is horrid and sluggish, the only benefit is delivery to store. Reputation is pretty poor and they only get footfall these days for the PO tie up.Be honest, outside of the PO it airport/hospital, when does anyone go to WHSmith?. I don't see them as a threat at all. |
I'm not saying it's a material worry at this stage. And it's all speculation. But high likelihood of pe taking it on and plausibly being a disrupter in this space. Good to think through the risks |
My point is around the future here. PE could move v aggressively into gifting and greeting cards. Strengthening toys r us tie up say. Making a more difficult space for card given their expanded range offering. WHS is profitable and cash generative. Someone will take it on, probably give it more focus than current whs management. |
Also, I think card could take share from WH but I don't think WH could take share from card. It doesn't make sense to me given the customer.
There's no price comparison, and that's the main reason I can't see people swapping over, amongst other things. |
Exactly, lease payments for card's nimble model have been coming down for years while sales have been going up.
It would be a problem for WH, but I haven't looked at the lease terms etc.
I feel like given we have management saying they expect good growth next year despite the extra budget costs that if I wanted to be in any retailer, it would be card. I see people getting into other things where lfl sales are declining and the demand is a lot more sensitive.
If you do the research, you can see why card will do well. |
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