The Hour Glass

Thread Rating:
  • 4 Vote(s) - 2.75 Average
  • 1
  • 2
  • 3
  • 4
  • 5
hi dydx,

Thanks providing more insight. The google map has annual photo booklet to do the comparison YoY from 2014 onwards till 2021. Based on the photos, the tenancy probably changed hands at least once. The decision to remake 192 Pitt Street, Sydney was stated in AR20:

re-purposing and refurbishment of one of our investment properties in Sydney - 192 Pitt Street into Australia’s most prominent Rolex stand-alone boutique

That particular crossroad now has 4 watch boutiques. I reckon it is going to attract more than its fair mindshare of shoppers who are looking to spend on a timepiece.

There is a gap of 5years (and at least 1 tenant turnover) between the retail property purchase and repurpose. I reckon this shows 1 of the key principles to success in life - You don't wait for apples to rain before you go get a basket. You get ready your basket and then tell the gods to rain apples.
Principal doing well, dealership performing well or above expectations, landlord has little reason to replace tenant. Not the same when principal and/or dealership are not performing well. Apply to prime location.

For huge mart operating at outer region of a city that can pull in crowds, it makes sense to own instead of renting. I bet the rental before a mart and after a successful mart will be huge. For shopfront at the intersection of a prime location, it might not be so clear cut, but I think owning it is still a better option or make more sense strategy wise. Throwing away the textbook question of allocation of capital - rent vs own.
Yearend is the all important period for THG's sales. The retail sales for Watches & Jewellery from Singstats look decent and so could we be expecting continued topline growth in the coming 2H24 reporting due in a couple of months? For context, 2H23 itself wasn't a weak period for THG.

Watches & Jewellery
Oct2023: +6.1% YoY, +8.3% MoM
Nov2023: +12.9% YoY, +1.5% MoM
Dec2023: +6.0% YoY, -0.4% MoM

Forum Jump:

Users browsing this thread: 6 Guest(s)