1 00:00:00,080 --> 00:00:02,840 Speaker 1: Jamie McKay with us shortly right now seventeen passis now 2 00:00:02,880 --> 00:00:05,480 Speaker 1: the warehouse is licking its wounds after delivering a very 3 00:00:05,480 --> 00:00:08,680 Speaker 1: bad result today they recorded a fifty four million dollar 4 00:00:08,760 --> 00:00:10,639 Speaker 1: loss for the year. I spoke to the interim chief 5 00:00:10,680 --> 00:00:12,200 Speaker 1: executive John Journey earlier. 6 00:00:13,240 --> 00:00:15,520 Speaker 2: Were certainly not where we need to be and the 7 00:00:15,560 --> 00:00:18,400 Speaker 2: result was a poor performance. We had a strategy set 8 00:00:18,440 --> 00:00:21,480 Speaker 2: about five years ago that was in hindsight to ambitious 9 00:00:22,079 --> 00:00:25,880 Speaker 2: and also distracted us from looking after our core brands 10 00:00:25,920 --> 00:00:27,560 Speaker 2: at the level of detail that we need. 11 00:00:27,880 --> 00:00:29,800 Speaker 1: Liam dan as The Herald's business entitor at larger with 12 00:00:29,880 --> 00:00:32,040 Speaker 1: us now, Hey Liam, get it, Heather, you reckon they 13 00:00:32,040 --> 00:00:32,840 Speaker 1: can turn this around. 14 00:00:34,159 --> 00:00:36,960 Speaker 3: I'm skeptical. I mean, you know, good luck to them 15 00:00:37,000 --> 00:00:40,600 Speaker 3: to some extent, although I was a big supporter of 16 00:00:41,040 --> 00:00:45,320 Speaker 3: Sir Stephen Tyndall and his private equity partners the bid 17 00:00:45,360 --> 00:00:47,239 Speaker 3: there and that you know, the speculation was that they 18 00:00:47,240 --> 00:00:50,480 Speaker 3: were looking to basically turn it into the third supermarket chain, 19 00:00:50,520 --> 00:00:53,199 Speaker 3: which had a lot of you know, appeal to me, 20 00:00:53,360 --> 00:00:56,440 Speaker 3: partly because I'm a business journalist and was excited about 21 00:00:57,240 --> 00:01:00,680 Speaker 3: a big takeover and a lot of change. But you know, 22 00:01:01,160 --> 00:01:02,720 Speaker 3: you could see the value in New Zealand and you 23 00:01:02,840 --> 00:01:05,320 Speaker 3: just you look at the Warehouse Group and you know, yeah, 24 00:01:05,400 --> 00:01:07,960 Speaker 3: five years ago, but gee, a lot has changed in 25 00:01:08,000 --> 00:01:11,240 Speaker 3: the last five years. I think the amount of stuff 26 00:01:11,240 --> 00:01:14,040 Speaker 3: that we're importing direct from China now, the cheap, cheap 27 00:01:14,080 --> 00:01:16,080 Speaker 3: goods that used to be the sort of staple for 28 00:01:16,120 --> 00:01:19,600 Speaker 3: the warehouse is sowed. I mean it's I think I 29 00:01:19,600 --> 00:01:25,000 Speaker 3: saw something in the GDP numbers that they skyrocketed, you know, 30 00:01:25,040 --> 00:01:27,600 Speaker 3: fifty percent in the last year. The amount of imports 31 00:01:27,640 --> 00:01:30,280 Speaker 3: we're doing directly as in, you know, from the likes 32 00:01:30,280 --> 00:01:32,920 Speaker 3: of Team Who basically, so they're up against it there, 33 00:01:33,319 --> 00:01:35,160 Speaker 3: and then they're up against it with the likes of 34 00:01:35,240 --> 00:01:38,480 Speaker 3: your Costco and Kmart, which is now decided it is 35 00:01:38,520 --> 00:01:42,000 Speaker 3: going to expand see some opportunity. So it's tough as 36 00:01:42,000 --> 00:01:44,800 Speaker 3: a value proposition, and they didn't do very well through 37 00:01:44,840 --> 00:01:47,880 Speaker 3: a period where people were looking for value. So you know, 38 00:01:48,560 --> 00:01:51,760 Speaker 3: maybe they can turn it around. I think they're looking 39 00:01:51,800 --> 00:01:54,440 Speaker 3: at some looking at it from some very different parameters, 40 00:01:54,800 --> 00:01:55,960 Speaker 3: I guess to Tyndall. 41 00:01:56,080 --> 00:01:58,840 Speaker 1: But yeah, if they're going to turn it around, and 42 00:01:58,880 --> 00:02:01,040 Speaker 1: they need to focus on the core business today abandoned 43 00:02:01,040 --> 00:02:02,040 Speaker 1: the supermarket idea. 44 00:02:03,120 --> 00:02:05,880 Speaker 3: Well they're saying, you know, it's not very lucrative as 45 00:02:05,880 --> 00:02:08,480 Speaker 3: it is, and of course you know that means there's 46 00:02:08,480 --> 00:02:11,320 Speaker 3: not much incentive to incrementally add to it at the moment, 47 00:02:11,360 --> 00:02:14,040 Speaker 3: so they're trying to get back to core business. I 48 00:02:14,080 --> 00:02:16,680 Speaker 3: think what Stephen Tindall was looking at was something quite radical, 49 00:02:16,720 --> 00:02:20,079 Speaker 3: which you can only do if you know you reinvent 50 00:02:20,120 --> 00:02:23,720 Speaker 3: the company. And he's someone who probably well, he definitely 51 00:02:23,800 --> 00:02:25,400 Speaker 3: has a deep love of the brand and a lot 52 00:02:25,440 --> 00:02:27,520 Speaker 3: invested in the brand and wants to see it have 53 00:02:27,600 --> 00:02:30,760 Speaker 3: a long legacy and not dwindle away, so he's prepared 54 00:02:30,760 --> 00:02:34,119 Speaker 3: to try something quite quite radical. I can understand why 55 00:02:34,120 --> 00:02:36,520 Speaker 3: the board and the current management, you know, within the 56 00:02:36,560 --> 00:02:41,040 Speaker 3: parameters they're working, can't take on that strategy because it's 57 00:02:41,080 --> 00:02:43,360 Speaker 3: too big. The shareholders didn't go for it, and in 58 00:02:43,400 --> 00:02:46,840 Speaker 3: particular we know the Normans who own own the family 59 00:02:46,840 --> 00:02:49,519 Speaker 3: who owns the Farmers Group. They owned twenty percent of 60 00:02:49,560 --> 00:02:52,600 Speaker 3: the warehouse and Stephen Tindall and these private equity guys 61 00:02:52,600 --> 00:02:55,760 Speaker 3: were unable to convince them. But I would not be 62 00:02:55,800 --> 00:02:57,560 Speaker 3: surprised to see him have another go. You know, it's 63 00:02:57,560 --> 00:03:00,320 Speaker 3: a lot to do with price and money. Obviously, it's 64 00:03:00,320 --> 00:03:02,960 Speaker 3: Almo's almost all to do with that, you know, And 65 00:03:03,000 --> 00:03:06,919 Speaker 3: so if it doesn't turn around in the next year 66 00:03:07,040 --> 00:03:10,600 Speaker 3: or so, Stephent Tindall may well be back because you know, 67 00:03:10,600 --> 00:03:14,880 Speaker 3: if the shears don't don't come up, then his offer 68 00:03:14,919 --> 00:03:16,239 Speaker 3: is going to start looking pretty good. 69 00:03:16,400 --> 00:03:19,200 Speaker 1: Yeah, yeah, fair point, Hallam is always really appreciated. Thank you. 70 00:03:19,240 --> 00:03:21,919 Speaker 1: That's Liam Dan, the Herald's Business editor at large. 71 00:03:22,040 --> 00:03:25,720 Speaker 2: By the way, for more from Heather Duplessy Allen Drive, 72 00:03:25,919 --> 00:03:29,320 Speaker 2: listen live to news talks he'd be from four pm weekdays, 73 00:03:29,440 --> 00:03:31,640 Speaker 2: or follow the podcast on iHeartRadio.