Interesting article in the AFR this morning, page 3 i think on...

Interesting article in the AFR this morning, page 3 i think on the former owner of Petbarn who went into online retail in petfood and was struggling to make money while distributing from 1 location (Melbourne). Anything over the size of a CD would just see the logistic costs eat into profit margins.

Simple strategy to overcome that, have a broader distribution base through a limited store network to cover Perth, cover Brisbane, Sydney, etc. From that point they could start to make significant money.

Hope SHP pay attention to this and potentially set up a store in each city that acts as their warehousing facility and get the logistics working from each location to cover each market. Already have Sydney setup (do they run any IT items out of this warehouse though), Melbourne (again do they stock YHD product or WowBaby), so would be interested to see them do something in Brisbane to cover the east coast. Unsure we are big enough to do Adelaide or Perth at this point.

Yes this probably implies holding more stock across different locations, but probably only in your high turnover goods.