WES looking at AMP, page-37

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    ok cp let me start by saying aldi variety would 'not' be a loss leader because it represents approx 30% of aldi business.
    As for your comment about wes and wow mass purchasing power ?,if you want to see 'mass purchasing power ' go to some of the US chains ,even UK and definitely aldi as they are in europe,UK,AUS and by memory the US.When these particular buyers walk into a chinese factory they could buy the entire years production of a product easily (could be a bar stool) the prices and margins offered by chinese are very very cheap in order to give that chinese factory security for that years business and the quantities are MASSIVE etc etc.WES and wow do not have this buying power eg 22m population verse US,UK ,Europe.
    But,wes and wow have improved they are now dealing direct with chinese factories and filling their variety sections with the product and they must continue doing that to maintain the required range.

    So now lets talk SPECIALS like aldis for woolwoths supermarkets,bigw even masters (lets exclude lowes buying power for now).When i say wow should follow the adlis business model of offering variety specials i'm talking combining woolworths supermarkets,bigw and maybe masters qty's going to china and buying for example a 'bar stool'.There combined quantities are still impressive to any factory so they have started by making their buying power as strong as possible.But then they must get the bar stool into the store at the lowest possible price.
    Lets start with delivering full container lots from china eg not lcl only fcl only to those states that can take them,tassy and maybe SA may miss out,then only stores that are large enough and can take a full pallet load or multipule full pallet loads get the bar stools not even 1 pallet plus a few extra just full pallet loads.Once handling becomes involved it massively increases the cost of the product.This is the lowest cost way to get the bar stools into a store.
    Pallet or pallets are taken off devlivery truck only at lge woolworths supermarkets,bigw maybe masters and taken by pallet truck to variety specials isle where pallet is left plastic rap removed and bar stools on special till sold out.
    Wow and wes do not do this,yes they ship to states but they need to have an avenue/system for specials to start competing with aldi's like above imo.
    ps i was in importing for approx 15 years,manufacturing approx 10 years ,wes and wow section buyers will not work together etc etc thats why they need to change this part of their business model.I tried to get woolworths supermarkets and bigw buyers to combine qty's,bigw was interested ,woolworths was not.
    ps cp and sometimes if a poster comes on to strong regarding their buy/sell opinion they will say dyor,thats just an attempt to cover their butt as you can't give financial advice on HC.that includes me.
 
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