A lot of instos have been reducing their holding recently : Australian Super, Lennox, Yarra funds, WAM, Pendal. Not sure for the reasons why they did it. Maybe just about the consensus view that the best has now passed for the retail sector.
It is not the way I see it. A saving rate of 20 % is probably a good thing going forward for the retail sector. Not to mention the fact that same store sales will also benefit from probably less stores going forward. Lastly, brick and mortar retailers will probably benefit from a lower cost base or at least a more variable cost base (due to renegociated rents and more flexible team works in stores).
Looking at Adairs specifically, difficult to think that they will not benefit from the revaluation of Temple and Webster, as their Mokka business looks very comparable (and is already very profitable).
ADH Price at posting:
$3.36 Sentiment: Buy Disclosure: 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)