That is series of information really illuminates the effectiveness of the new management, and also the importance of understanding the changing retail market. The old baby boomer market that NBL targeted in the past, would have closed the door on the business had things remained the same.
It took a lot of technical knowledge across a number of disciplines to improve the turnover ratios. And it makes a lot of sense that higher turnover means a consolidation in customer awareness. There a so many levers supporting those numbers and they read more informatively than any commentary. I think that management are reasonably prudent here.
They have the right mix of products it seems, but are taking an organic approach that is probably better suited long term. They are building the business in a way that has an element of preparedness for good times ahead. They could have made another investment elsewhere for example. What for? The product mix is already balanced. Its a bit like trying to write a symphony with too many notes.
They are best served to leave the product mix and start building in efficiencies, increasing market share if that is possible, but mainly having all systems ready to compete in a sector that will have it's day. In the meantime, being patient and focussing internally on the quality of staffing, expertise, staff motivation, will keep the organisation a positive growth curve. This is where the old NoniB faultered.
By the way thanks for that data. Inventory management targets really should be a KPI built into all MD's performance bonuses operating in retail.
NBL Price at posting:
$2.00 Sentiment: Buy Disclosure: Held
