Mike, for a moment there I thought you were going to post something with both eyes open rather than just the one! Just kidding, you're as entitled to your opinion as the next person, but to say that WES will be the big loser from the hardware battle is no different to saying WOW will be the big loser from the supermarket battle. WOW was already in the top position with the business in pretty good shape, now all they're doing is giving up margin. Coles on the other hand can offset what it is giving up one one hand with savings on the other...it creates the virtuous cycle that is often spoken of.
Just a little extract from an article I read this morning supports something I've thought (and have previously posted) for quite some time now... "Some of the communication from [Woolworths] regarding their competitor . . . to some extent they seem to be in denial, not really believing they are losing the battle with Coles"
"The metrics we look at suggest to us they are losing the battle, and maybe a recognition of that would probably be a good first step [for O'Brien]."
"Losing the battle" is probably a stretch, but living in denial is right on the money and a key reason why, in my opinion, Luscombe is walking out the door. The next interesting item on the agenda is what is going to happen to Greg Foran? I don't know that much about him but it would be hard to imagine that he wouldn't have a significant amount to contribute from the other side of the battleline.
WOW Price at posting:
$26.95 Sentiment: None Disclosure: Not Held
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