Also doesn't look good when a lot of key staff are jumping ship as well (A lot have been going to other retailers to work due to instability). Have seen this all before with companies such as Buyrite back a few years ago. I was there and witnessed it first hand and got out before the ship sank. Most of their stores were offloaded to Clive Peeters in their store buying frenzy in Melbourne.
Be carefull, tough industry to invest in at the moment. Especially with interest rate rises.
Unfortunately there is too much competition in Melbourne / outer Melbourne and more stores opening in the future (Unfortunately for Clive Peeters more HN stores, JB Stores and ES Trading Stores). Probably HN's biggest shop in the country will be opening near Clayton next year sometime and some new stores down the road from Chadstone shopping centre. But none are Clive Peeters stores.
Too much competition = Less customers for each retailer, lower profit margins (Which = Less money to be shared with share holders in the future).
Only giving you guys the real world truth. This market isn't turning for a long time, unless there is help from the RBA with stability of the interest rate or a lowered rate. But when will that happen?
CPR Price at posting:
12.0¢ Sentiment: None Disclosure: Not Held
