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Comments on: Thoughts on the Warehouse Decision http://www.tvhe.co.nz/2007/12/05/thoughts-on-the-warehouse-decision/ The Visible Hand in Economics Thu, 31 Jan 2008 01:43:21 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: The Warehouse Saga drags on….. « The visible hand in economics http://www.tvhe.co.nz/2007/12/05/thoughts-on-the-warehouse-decision/#comment-593 Thu, 31 Jan 2008 01:43:21 +0000 http://tvhe.wordpress.com/2007/12/05/thoughts-on-the-warehouse-decision/#comment-593 […] 01 2008 We’ve previously talked quite a bit about the issues around the Warehouse case  (here,here,here,here,here,here). The Commerce Commission pretty much set a new record in how many times […]

]]> By: Matt Nolan http://www.tvhe.co.nz/2007/12/05/thoughts-on-the-warehouse-decision/#comment-583 Wed, 05 Dec 2007 19:44:09 +0000 http://tvhe.wordpress.com/2007/12/05/thoughts-on-the-warehouse-decision/#comment-583 “To be sure, Matt, the REAL Halo effect is the ability to sell an overrated games consol on the back of one major title.”

Hahahahahaha 🙂

The pitchfork effect sounds sorta like whats happening to the Body Shop. Damn consumers

]]> By: Kimble http://www.tvhe.co.nz/2007/12/05/thoughts-on-the-warehouse-decision/#comment-592 Wed, 05 Dec 2007 06:22:26 +0000 http://tvhe.wordpress.com/2007/12/05/thoughts-on-the-warehouse-decision/#comment-592 To be sure, Matt, the REAL Halo effect is the ability to sell an overrated games consol on the back of one major title.

I want to coin a new phrase, the pitchfork effect. That is where a firm that was once considered a nice and friendly member of the community merges with a faceless corporation with zero public appeal.

The nice firm may keep doing all the good things they were doing, they may even increase them. But deep down inside, people will start to distrust their motives and discount the good they are actually doing. People will start to think that the nice firm has lost its soul.

The faceless corporation will start to panic and try even harder to prove that the joint venture is really actually nice. This will cause people to ask, why are they trying so hard? The old nice firm didnt have to. What do these guys have to hide?

Nothing, the joint venture will say, look we are doing even MORE!

Slowly the nice firm will have changed its look, its feel, its vibe, until people realise that the nice firm doesnt really exist anymore. They will say things like, dont you remember the old days of the nice firm, everything was cheap and crappy but we liked it. Not like today with that nasty firm, with all their cheap and crappy stuff.

The nice firm is dead, long live the soulless, faceless corporation with zero public appeal.

= The Pitchfork effect

]]> By: Matt Nolan http://www.tvhe.co.nz/2007/12/05/thoughts-on-the-warehouse-decision/#comment-591 Wed, 05 Dec 2007 05:18:05 +0000 http://tvhe.wordpress.com/2007/12/05/thoughts-on-the-warehouse-decision/#comment-591 That dirty old halo effect. I’m still waiting for someone to ask me if that has something to do with the xbox game :). Who do you think Tindell will sell to?

]]> By: agnitio http://www.tvhe.co.nz/2007/12/05/thoughts-on-the-warehouse-decision/#comment-590 Wed, 05 Dec 2007 05:15:29 +0000 http://tvhe.wordpress.com/2007/12/05/thoughts-on-the-warehouse-decision/#comment-590 that’s a slightly different issue I think, the warehouse most likely already achieves pretty good scale in the wholesale market for general merchandise and both of the supermarkets will have good scale for groceries so I don’t think a merger is going to have that much of an impact on the wholesale markets

I was more referring to the Halo effect that you love so much, if the merged firm starts pulling people away from the non-merged firm because of the halo effect then the non-merged firm will have to respond in some way

]]> By: Matt Nolan http://www.tvhe.co.nz/2007/12/05/thoughts-on-the-warehouse-decision/#comment-589 Wed, 05 Dec 2007 05:10:15 +0000 http://tvhe.wordpress.com/2007/12/05/thoughts-on-the-warehouse-decision/#comment-589 Such as economies of scope in their wholesale buying activities?

]]> By: agnitio http://www.tvhe.co.nz/2007/12/05/thoughts-on-the-warehouse-decision/#comment-588 Wed, 05 Dec 2007 04:54:45 +0000 http://tvhe.wordpress.com/2007/12/05/thoughts-on-the-warehouse-decision/#comment-588 I think if one of the super markets can implement the Extra format successfully it will give that firm a non-price advantage which will force the other to respond through either price or non-price means,either of which would probably be a good thing

]]> By: Matt Nolan http://www.tvhe.co.nz/2007/12/05/thoughts-on-the-warehouse-decision/#comment-587 Wed, 05 Dec 2007 01:29:13 +0000 http://tvhe.wordpress.com/2007/12/05/thoughts-on-the-warehouse-decision/#comment-587 “I have always been of the opinion that the Extra concept would be much more effective in the hands of Woolworths or Foodstuffs due to the massive scale they have in the wholesale market”

I hope that Woolworths ends up being the party that purchases the Warehouse. They have previously stated their own interest in taking advantage of the ‘halo effect’. I’m not quite sure how this would lead to “more competition than the status quo” though, would you care to elaborate?

]]> By: Owen http://www.tvhe.co.nz/2007/12/05/thoughts-on-the-warehouse-decision/#comment-586 Wed, 05 Dec 2007 01:02:11 +0000 http://tvhe.wordpress.com/2007/12/05/thoughts-on-the-warehouse-decision/#comment-586 They are a bad customer experience in my opinion too, the one at Sylvia park never seems to have any grocery shoppers there.

The idea of buying groceries from the warehouse wierds me out personally.

]]> By: agnitio http://www.tvhe.co.nz/2007/12/05/thoughts-on-the-warehouse-decision/#comment-585 Wed, 05 Dec 2007 00:27:16 +0000 http://tvhe.wordpress.com/2007/12/05/thoughts-on-the-warehouse-decision/#comment-585 Fair point, I guess the same applies for people who just want to buy some milk but are being held up by someone who is doing all there christmas shopping:)

Although, I’m assuming that the places where they would have extra stores are generally going to be quite massive and have the capacity to cope quite well with huge numbers. In the US walmart stores have grocery and general merchandise and I’ve found things seem to run pretty smoothly as they just have heaps of checkouts.

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