Clearly the National Distribution Centre (NDC) has been the Centre for National Disaster! not only did we not get the expected $3m to $4m in improved cost efficiencies, but we are now saddled with an additional $18 m in Capex and a further diversion as we try and right what has been a major detraction on our ongoing goodwill in the minds of customers. Neither ADH or it’s Mocka division have handled the Omni Chanel infrastructure well, judging by the customer complaints. Mocka in particular, what a disaster of an acquisition. I do think the ADH brand needs to be sharper going forward as a combined and more focused Target & K Mart plus a Brett Blundy controlled Best & Less will be chipping away at segments of the traditional ADH marketplace. The gloves will be off at a time of a constricting marketplace due to recessionary pressures. I think consumer discretionary retail has a tough year ahead.
ADH Price at posting:
$1.70 Sentiment: None Disclosure: Held
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