Forum Archive Index - February 2003

[nickk@quicksilver.net.nz]

The Independent had a feature on this yesterday. 

Jenni McManus (on the radio) didn't like it and thought their 'modus 
operandi' would not suit NZ markets. 

As a thought, if flying around in a helicopter looking for sites can reduce 
the capitalistion of WHS by millions, what will a store on the ground do?? 

Cheers 

Gnr 

Allan Potts writes: 

> 
> It appears to me that the reason WHS had it's share price fall off a cliff 
>was made public yesterday by a STUFF article.  It reported that COSTCO 
>executives had been in NZ over the weekend using a helicopter to scout for 
>sites for the possible development of COSTCO stores.  The STUFF article pooh 
>pooh'd the threat of COSTCO competition, but I think they got it wrong.  
>Evidently the market also thinks they have it wrong. 
> 
> COSTCO is a 900 pound gorilla and if they stick it out in NZ, I think they 
>will be very successful.  The article plays down COSTCO because they sell in 
>bulk.  Well yes and no.   Many items are in bulk, however thousands of items 
>are not.  Their  prices are absolutely the best I've seen in the world and are 
>a great boon to consumers.  The concept started out with the PRICE CLUB, 
>founded by a San Diego attorney turned developer/merchandiser -- Sol Price.  
>The concept started off very slowly, until business people  found out they 
>could by their goods at better  prices than they were getting at their 
>wholesale distributors.  Then the public caught on and gradually the concept 
>took off.  The individual who started COSTCO used to work for and was trained 
>by Sol Price.  Later on The PRICE CLUB  and COSTCO merged and was called 
>PRICE/COSTCO.  Finally COSTCO bought out the entire thing and renamed it 
>COSTCO. 
> 
> Looks like the TA  guys really were ahead of the curve on this one as the 
>sell signal was given when it crashed through support at $7.00.  It went so 
>fast I didn't get out.  Finally the news comes out that evidently was known to 
>some select biggies somewhere.  As I said in my first post OUCH!!! 
> 
> Since I'm not on the ground there I really can't judge the ability of WHS to 
>withstand the fierce competition that COSTCO would bring in NZ and Aussie. 
> 
> Any thoughts from the troops on the ground?? 
> 
> Allan 
> 
>  
> 
>  
> 
> 
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