Ann: Trading Update-BLX.AX, page-12

When looking at a specialty retailer, I always consider their competitive strengths against any big box category killer retailer (In BLX's case, Bunnings). In my opinion, BLX should be able to compete relatively well against Bunnings. After all, they've been competing against Bunnings for decades, and both retailers are able to carve out their own niche markets.

There is however a bigger threat to any traditional retailer, which is in the form of online retailer giant such as Amazon.


Unfortunately in BLX's case, I'm not convinced that if Amazon one day enters Australia, they will be able to compete effectively against Amazon with its product range and speed of delivery.

BLX's products are relatively small and can be posted easily in boxes. Customers are not usually concerned about the brands, instead they are attracted to the designs of the lighting.

In the near term, BLX will continue to be negatively affected by stock liquidation happening at Masters.

Even with this drop, BLX is still a no-go for me.