Competing directly against the world's best Home Improvement business Bunnings.
DIY home improvements is a lower margin business than home furnishings. The drop shipment model is even lower margin again.
Do TPW shareholders seriously think Bunnings are going to sit back and watch TPW take market share from Bunnings?
The preso stated that 'Long term margin profile better than Furnishings and Homewares' yeah right, actually very wrong.
The real kicker is that TPW will spend another $10m on dveloping the strategy and this new business will be a material Sales and positive EBITDA business in 4 years time.
It reads like a Monty Python Skit where the valiant knight loses limbs, bleeds a lot and yells "it's only a flesh wound!" Meanwhile he bleeds to death.
This is the dumbest retail growth strategy I have seen in a long while.
TPW Price at posting:
$5.40 Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)