"Woes at Woolworth". A BLOG (until sp hits 60p, for 30-consecutive days)

March2007 - Corbett goes.
Will he be missed? A good speaker at their AGM (-and no-doubt in front of institutions). Maybe it will encourage WLW to shed some execs and frankly you could cull half at random and nowt would change. He should ahve gone a year ago!
WLW is still a business that's plodding arround, trying to find its purpose...just about everything they sell... is sold better elsewhere.....Whilst the Red-Book (is it?) =their Web-based sales-offering is "probbly their best idea yet" (IMHO) - it is poorly developed, thin on information and hardly gets a viewing at my local store....Why is it so badly promoted? It could be they want to iron-out the wrinkles, but I suspect the real reason is General Incompetance...
Corbett, he of Railtrack and Woolworth - doesn't look good on a CV, huh!

now that Baugur have no present intention of bidding for Debenhams, will they be having a harder look at WLW ? I hear that the music chain MVC and and VCI video sales are exceeding expectations. Bought in today.

Unless I have totally cocked it up, I make the divdend return for lasrt year 6.1% at todays buy in price of 23pence.

And this could be why

OUTLOOK Woolworths update to show improving sales trend
AFXU


LONDON (Thomson Financial) - Woolworths Group PLC, the troubled sweets, CDs and stationery group, is expected to report an improving underlying sales trend when it updates on first half trading tomorrow.

Analysts at UBS, the group's house broker, reckon first half to end-July like-for-like sales at the 818-store chain will be flat -- an improvement on down 0.6 pct for the 17 weeks to June 2, reported June 6.

They note that Woolies' comparative numbers eased sharply in June and July against the World Cup period last year when football and entertainment sales were weak.

The dismal weather in June and July may also have benefited the retailer, given its exposure to entertainment products.

However, the first half is a relatively unimportant period for Woolies with the bulk of its sales and profit made in the run-up to Christmas.

Third party sales at EUK, the group's entertainment wholesale business, were up 28.4 pct over the first 17 weeks. The group said 2entertain, its publishing joint venture with BBC Worldwide, made a 'good start' to the year with performance in line with internal hopes.

In June, the group's chief executive Trevor Bish-Jones highlighted a retail gross margin 'substantially ahead' of the prior year over the 17 weeks and flagged a full year to end-January 2008 gross margin improvement of 'at least' 100 basis points, with like-for-like sales 'just south of flat'.

He said he was comfortable with analysts' full year underlying pretax profit forecasts of about 27 mln stg, up from the 22 mln stg reported last time.

Baugur, through the Unity Investments vehicle, which groups Baugur with fellow Icelandic investor FL Group HF and retail entrepreneur Kevin Stanford, holds a direct stake in Woolworths of 10.2 pct and has a further 2 pct through contracts for difference. It has been linked with a possible break-up bid or push for restructuring.

Last September, Bish-Jones admitted to having explored the possibility of disposing of, or splitting off, EUK and 2entertain. But, given where both businesses were in their development cycles, he said it was not the right time to change the shape of the group.

At the time he reckoned EUK was too dependent on supplying its owner, but admitted as its revenue stream strengthened -- as it since has with contract wins from WH Smith PLC, WM Morrison Supermarkets PLC, Virgin Retail Ltd and Wal-Mart Store Inc's Asda, replacing the loss of a major Tesco PLC contract -- so would the potential for a standalone business.

Of 2entertain, the chief executive noted the group's agreement with the BBC contains an exit mechanism for both parties in 2008, making this the logical time to review the optimum ownership structure of the business.
http://www.moneyam.com/action/news/showArticle?id=2135461

Well, it sounds OK, yet the sp has drifted yet again - whatever the dividend this is not a share for profit.
What really surprises me is that there doesn't seem to be any desire by Bauger (and other large holders) to remedy the situation - just carry on trim the sales now and again, yet the ship (or what passes for a ship) is already in shallow water and looks to be heading for the rocks.
Ditching the music JV would be like burning the life-raft!

Oh dear! ...as I'm averaging abt 35p....yikes!

I decided to buy, but cancelled my order, there is too much weed in the water for this barge to make much headway without a little help from the likes of Bauger and they seem intent on chopping little bits off, it may make a lean machine worthy of being takenover once that has happened, but all it would do inreality is provide plenty of High Street shopping space for who knows what.

Short term gain, long term pain is my best guess.

Then again wtf do I know?

Looks pretty good to me, maybe there will be a price rally?

Woolworths Group plc

Pre-Close Trading Update

31 July 2007

Woolworths Group plc is today updating the market on trading to 28 July 2007
ahead of entering its half year close period.



Since last updating the market, Woolworths Retail like-for-like sales for the
eight weeks to 28 July are +3.7%, bringing the cumulative position for the full
25 week period to +0.7% like-for-like. Key factors behind the sales performance
are the continued good performance of our Multichannel offer and the strong
early response to the new Worth It range.



Given the prevailing unseasonable weather over the period, we have seen improved
sales of 'indoor' products at the expense of 'outdoor' product.



Margin delivery continues to be in line with internal targets and stock levels
continue to reduce year-on-year as we improve the efficiency of the supply
chain.



Third-party sales at EUK for the 25 weeks increased by 36.2% in what continues
to be a period of considerable operational change and challenge for the
business. With an enlarged customer base, the priority is to ensure delivery of
high levels of customer service ahead of the key peak season.



Since the beginning of this financial year, the mix of EUK's business has
continued to evolve. Whilst the traditional Music market is in decline, the
Games market is showing strong growth. Sales of DVDs have been higher than
anticipated, in part because of the unseasonable weather. The Books market
overall continues to perform solidly.



As reported on 24 July 2007, the Competition Commission has provisionally
cleared the completed acquisition of Bertram Group Limited. The Commission's
final report is due for publication no later than 17 September 2007.



Sales at 2entertain are ahead of forecast and have increased by 20.1% in the 25
weeks to 28 July, driven by the tremendous success of Planet Earth in the US,
particularly in the new high definition formats. We anticipate continued sales
momentum to come from the product.



Chief Executive, Trevor Bish-Jones, said:

'Whilst we are encouraged by the sales performance across the Group to date, we
are mindful that the retail like-for-like performance is against weak
comparatives and we continue to be cautious about the retail environment going
forward. We remain focussed on running the business tightly, concentrating on
cash generation, control of costs and improving margins.'

Yes, yes, Company ann's are OK, but The Market is why we're here....and the Market doesn't like it. Therefore I don't like it - and as a shareholder it hurts me each time I go into Woolworths and see goods stacked on shelves with no prices - a whole JML display was without a single price and the Video wasn't working either.... Was it "lunch-time" was it heck!
Further round the store the Roses were priced: - dead ones in pairs at 1.99 (don't quote me on exact pricing) and deluxe dead singles at 3.99 - shouldnt two members of staff be in charge of "watering" - I don't know how long this display will last, but it looked fairly new, judging from the quantity - they are almost worthless stock which I wouldn't buy. If I was given them next week, I doubt I'd take them - planting would be a waste of my time.
The woes at Wollies go far further and almost any store will repeat this dire situation because (it seems) no-one really cares at the Top and this is filtered down, so new staff become despondent and adopt the Company policy....

Just 20p today, I wonder how much longer before a "silly" 26p-bid?
Has Bauger walked? Someone suggested (not here) they were reducing their holding....anyone know? If it drops to 16p thwen some will welcome the prospect of 26p - grief have these Execs no time to visit their stores?

Feb 2008 . . .. 11.5 pence ( recovered from 8.5 pence a few days ago! )
Woolworth Directors spend c. 82k on shares . . . is this a signal that we're in for some No-News intervals. . . .
FWIW these are -
Andrew Beeson -47,885
Anthony Page - - 20,000
Fru Haslet - - - - 50,000
Stephen East - 300,000
Stephen Lewis - 150,000
T B-Jones - - - 150,000
-DYOR -
Some are "modest" and some are their entire holding! Nothing like waiting for a good opportunity, eh?

I would have hoped we'd see some forward-Positive News, like refurbishing Directors and Stores, staff training, . . . . as I'vwe banged-on before.

For now, this will have to do.

results not too bad so I've decided to dip my toe in and tuck a few shares away---someone may be waiting to pounce on this old timer !

Pre-Chrismas sale of Woolworths at 1 . . . .NO, this isn't a massive stock-shift...it's a Store-shift....Buy the lot for 1....!
/
Grief with all those expensive Execs can't they throw in a little more?
/
Maybe gettinig the business "right" would help....it really rankles that Execs are earning so much for doing nothing . . . .their purpose is to run and improve the business . . . not to leave it alone and run with their wage.

Obviously, if the Co is sold fro a song ( Oh, is that side worth nothing?), then they haven't improved the Debt sufficiently and should receive wages in paper....real paper...not money.....since they have been idle whilst letting the ship founder. Each one must state publically they will not work again....please!.

Tonight on BBC2 the case for Lidl will be put...and there was a rumour that WLW would use some of its space for concessions, like LIDL - well I'm fairly sure Lidl would not be interested....
1)Few WLW stores have car-parks
2)Customers would not use the WLW store, so it wouldf be better used for storage, and retail shelving.

Can WLW emulate the likes of Lidl - well why not? IMHO the problem with WLW is they have nothing that I can't buy elsewhere. Hence I visit only when it's convenient and my "spend" is rarely more than a few pounds, whereas Lidl is typically 50, judging by the trolleys......I mean does ANY Woolworth need trollys?

Now we know why Directors were so shy in buying stock.