11 Comments

HNY and thank you for your interesting commentary. As a matter of interest do you bother with Level 2 data in conjunction with your other technical and fundamental criteria?

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Jan 6Liked by Cockney Rebel

HNY to you and a big thank you for your posts.

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author

As I said in my recent Review, I had reduced CARD more because I think one headwind will be staffing costs, they have high staff to sales ratio. SHOE probably less so but all these retailers will find it a bit of an added cost going fwd. Some retailers will be outgrowing the increase, those that are struggling will struggle more imo.

Happy New Year

All the best

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Q: How does a retailer cope with minimum/ living wage increases?

A: It cuts trading hours, which has the effect of cutting contracted hours, and then it bans overtime.

I've had my mind on retailers costs right through the turn of the year so deliberately went on an espionage mission in a branch of SHOE today. The lady there told me all stores with eight o'clock evening trading are being cut back to a six o'clock close, and all overtime is cancelled. She tells me she'll be several hundred pounds worse off this month and will still be worse off after the pay rise, except she'll have more free time. Well done chancellor! She was on limited hours beforehand but I got the impression others have lost hours, and I imagine if Shoezone had evening only staff they'll no longer be employed.

There's a possible read across to the rest of retail, especially value retail, CARD for example, and other low wage labour intensive businesses. Where does Shoezone turn next time labour costs are jacked up outwith their control?

It's not the only cost headwind for SHOE given that their shoes are probably now taking in a winter cruise around the Cape.

I'll end positively by reporting the lady in Shoezone said her branch hit it's Christmas target and that it was, and I quote "slippers galore!"

I hold SHOE and CARD.

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A happy,healthy and prosperous new year to you CR. Thanks again for your thoughts.

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Thanks Richard. I think I posted, possibley to one of your posts on Twitter, that my sister who is a manger at Tescos said that they took something like 30%+ more this Christmas compared to last year . Of course there have been price increases, but what was interesting is she said they smashed their targets out the park and were busier than they have ever been. This seems to be in line with other s in the sector. Good read across though. I got myself a small position. Couldn’t resist!

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Thanks. I used to use it but haven’t for quite a while. I questioned how much it really added to the overall quality of buy/sell decisions and am reluctant to pay for it with the likes of ADVFN.

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