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WES, WESFARMERS LIMITED
nipper
post Posted: May 8 2020, 10:00 AM
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Wesfarmers chief executive Rob Scott said the conglomerate’s hardware chain Bunnings started from scratch with an online shopping platform just two years ago but was now “leading the way” in retail as customers gravitate to online in the wake of the coronavirus pandemic.

Following the demerger of Coles, Bunnings now generates just more than 50 per cent of Wesfarmers’ annual earnings and with the deteriorating performance of the conglomerate’s general merchandise chain Target and its industrials and safety divisions, the hardware chain’s contribution to profit is set to grow.

Mr Scott said Bunnings was leading the way in its roll out of online shopping. “Kmart and Target … achieved very strong growth in online sales and if I look at Bunnings, it is worth remembering that two years ago Bunnings didn’t have an online transactional capability and now in many ways I think Bunnings is leading the way around innovation in this area,’’ Mr Scott told a Macquarie conference. “The drive and collect model has been a fantastic initiative that has been adopted by Bunnings and Officeworks which essentially allows a customer to drive their car to a Bunnings warehouse store and one of our team members will drop the order off at the back of the boot.” Wesfarmers had also converted three Kmart stores to “dark stores” (distribution centres) to help support the lift in online demand. “It is worth noting that we have been able to win a number of new customers through this, so we are seeing that this is driving incremental sales and incremental customers to our business, not just cannibalising sales that would otherwise occur in the store.’’



Wesfarmers was also learning new digital skills from its recent acquisition of Catch.“We have seen very strong growth in sales in the Catch marketplace and we have also learnt a lot about the digital experience within the Catch business that we have been able to roll out in some of our other businesses,’’ he said. Wesfarmers, which is sitting on more than $2bn in cash following the partial sell down of its stake in Coles, would look to invest in online. “In terms of online investment we will very much be led by the divisions, and by the customer I guess, in how much we spend and how quickly we spend, we are seeing some great opportunities to invest in the digital space. “Interestingly, because a lot of software is cloud-based solutions, the upfront costs associated with a number of these are materially lower than they were five to 10 years ago. So a lot of the investment we are making is more opex (operational) than capex (capital) and you can get quite a lot of bang for your buck in terms of the investment you make.” Mr Scott said he expected more significant online investments to be made in its Bunnings, Kmart and Catch businesses.
Turning to trading, Mr Scott said “I would be very surprised, I think it will be unlikely to see the strong growth in sales that we have experienced in the last couple of months to continue. It would be great if they did, but I think realistically we would expect some moderation."




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Mar 30 2020, 06:56 PM
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iWesfsrmers s selling a $1.1 billion stake in supermarkets group Coles in a trade being handled by UBS and Goldman Sachs on Monday night, sources told Street Talk.

The brokers bought the stake at $15.39 a share after market on Monday and were seeking institutional buyers to take the stock.

The deal was at an 8.5 per cent discount to the last close and represented 69.4 million shares or 5.2 per cent of Coles' equity on issue.

- now holding under 10% ...., give up the director seat. Keeping 50% of Flybuys



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: early birds  
 
plastic
post Posted: Mar 19 2020, 01:32 PM
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Mines and factories should be included as well.

That none of it is happening lends ammunition to the argument that all is not what it would appear to be.

https://www.nzherald.co.nz/nz/news/article....jectid=12318220

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Gatherings of over 100 people banned to stop coronavirus spread




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What did Uncle Mel do to us?
 
plastic
post Posted: Mar 19 2020, 01:12 PM
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What are the malls and supermarkets even doing open in the face of this pandemic?

WES dropping the ball when it comes to it's social responsibility. Must be waiting for the orders to come through from head office.

While we're on it, when are the buses and ferries and trains going to be stood down? Once all the major office blocks, schools and universities are shut they won't be needed.



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What did Uncle Mel do to us?
 
nipper
post Posted: Feb 18 2020, 05:02 PM
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Wesfarmers is taking advantage of record highs in the Coles share price and generally buoyant conditions in equity markets to sell off $1.1bn of its stake in Coles, representing one third of its total holding, marking the next step in its demerger and eventual sell down of its holding in the supermarket group.

After the market closed on Tuesday, and following the release of Coles’ first half results, Wesfarmers announced it had entered into an underwriting agreement with two lead managers to sell 4.9 per cent of the issued capital of Coles. It is using the services of UBS and Macquarie Bank for the sale.

Wesfarmers, whose directors are currently in a board meeting before the release of its half-year results on Wednesday, is looking for prices between $16.08 and $16.45 as it aims to sell 65.4m shares in Coles to investors.

Following the sale process, Wesfarmers will retain a minority interest of 10.1 per cent in Coles and its right to nominate a director on the Coles board, maintaining the ongoing relationship between the two companies since the demerger of Coles from Wesfarmers in November 2018.

The sell down comes as Wesfarmers managing director Rob Scott is continuing to reshape Wesfarmers, which has seen him in the past few years generate billions of dollars in revenue from the sale of its Bengalla coal mine, the sale of Kmary Tyre and Auto as well as the sale of Quadrant Energy.

Wesfarmers demerged Coles supermarkets in 2018 and the selldown has been widely expected in recent days.

Under the relationship deed agreed with Coles at the time of the demerger, Wesfarmers has the right to nominate a director to the Coles board while it retains an interest in Coles of at least 10 per cent.

It comes as Coles shares trade near all-time highs and have risen almost 50 per cent in the last year.

Mr Scott said the partial sale of the Coles shareholding would crystallise a strong return for shareholders while enabling continued strategic alignment and collaboration between the two companies in relation to mutually beneficial growth initiatives.

“We believe this level of divestment is in the best interests of our shareholders and consistent with our objectives at the time of the demerger, which included demonstrating continued confidence in Coles’ future as a stand-alone listed company,” Mr Scott said. “We have been pleased with the performance of Coles as an independently listed entity and believe it is an appropriate time to realise value for our shareholders while retaining a meaningful interest and ongoing connection with Coles, including representation on its board and through our flybuys joint venture.”

Bids are to close at 7pm on Tuesday.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: early birds  
 
nipper
post Posted: Feb 14 2020, 03:52 PM
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.
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It’s one of the most well-known and high profile advertising slogans from one of Australia’s most loved retailers – but not for much longer.
Bunnings is quietly pulling the pin on its famous tagline.

“Lowest prices are just the beginning …” is, well, ending. At least for now

.
https://amp-news-com-au.cdn.ampproject.org/...9f51ca966088efa



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 

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nipper
post Posted: Jan 24 2020, 08:48 AM
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Following review of the DFS, Wesfarmers and SQM have agreed to undertake additional work which will result in the deferral of the final investment decision on the Lithium project to the first quarter of calendar year 2021.

Key actions include:
• conducting further work to optimise project design to reduce capital and operating costs
• exploring opportunities to improve utility and infrastructure solutions for the project
• investigating initiatives to further leverage WesCEF’s existing capabilities including by providing shared services and reducing operating costs
• ongoing discussions with key customers to ensure product specifications are aligned with continued changes in battery chemistry




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: early birds  
 
nipper
post Posted: Nov 21 2019, 04:45 PM
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In Reply To: blacksheep's post @ Oct 16 2019, 07:45 PM

QUOTE
One year after the demerger of Coles from Wesfarmers, shareholders in both companies are $16 billion richer, vindicating the conglomerate's decision to spin out the food and liquor retailer into a separately listed company.

Wesfarmers shares have risen 32 per cent since the demerger to $42.45 and Coles shares have risen 25 per cent to $15.61 since it listed on the ASX on November 21 last year..




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
blacksheep
post Posted: Oct 16 2019, 07:45 PM
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WES SP broke through the $40.00 mark today - finished @ $40.65 - highest since the announcement of Coles demerger back in November 2018
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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
nipper
post Posted: Oct 11 2019, 09:57 AM
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Hardware giant Bunnings has made a small bolt-on acquisition in South Australia as part of its strategy to attract more trade customers, entering into an agreement to acquire leading South Australian retailer, Adelaide Tools.

The price of the acquisition has not been disclosed.

Adelaide Tools is a 70-year-old family-owned and operated business serving trades and high-end DIY enthusiasts through five Adelaide stores located at Oaklands Mower Centre. It also has an online offering more than 8000 products.

Bunnings managing director Mike Schneider said Adelaide Tools was a quality business with a great team, premium brands and a reputation for great customer and after sales service.

“The acquisition, which is subject to regulatory approval, will allow us to improve the way we connect, serve and engage with trade customers and is aligned with our strategy to accelerate the growth of the trade business,” Mr Schneider said.

“The business will continue to operate as Adelaide Tools and will give Bunnings insight into the dynamics of the trade specialist market. “While our businesses are very different, we see strong alignment between the Adelaide Tools and Bunnings brands with both businesses having a strong focus on team, advice and service. We believe this acquisition will deliver even more choice and convenience for trade customers."




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
 


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