For those of you don’t read stuff.co.nz while they should be working, there are some really interesting tidbits on the latest article about the Warehouse pahsing out the extra concept.
It expected an annualised pre-tax improvement in trading earnings of about $9 million.
i.e. the extra concept has been hemorrhaging money!
Mr Morrice said it was the failure of the hoped-for halo effect – where grocery shoppers also bought general merchandise – that was the main reason for Extra’s dumping.
This has been Matt’s pet topic during this saga (posts here and here). The killer for the halo effect, and the reason why I’ve always believed the Extra concept would fail unless a supermarket owned the warehouse is summed up nicely by Tony Carter from Foodstuffs
“Clearly they did not have the scale”
and Mary Smith of Auckland
“I don’t come here that often. I find their prices expensive compared to the other supermarkets.”