Aldi marketing, page-72

Hi Crazy.

In my experience there is nothing wrong with Aldi quality. Indeed, in some cases, I would suggested that items like meat, for example their grass feed beef steak range, is better quality than generally sold at the majors.

Taking a closer look at the majors also have variations on region to region basis. In my local region I find meat from Coles to be a total pass, Wollies is pretty good. Tho Aldi's meat products are pretty consistent across the east coast atleast, in my experience, of higher quality, especially the premium stuff (grass fed etc) which price wise still compares well with the majors run of the mill stuff.

Of course tho Aldi is not a complete shop as they don't have everything you need, but they do have a lot, and they are pretty efficient in terms of many measures, from simple things from how long it takes shelves to be stacked, to the cash register time, high turnover of a more simplified range resulting in less spoilage, through to less lost shopping trolleys. Aldi should not be underestimated.

None the less I do remain bullish, over a longer term of time, on Woolies.

Mr Market liked Fridays update in the morning, but changed his mind in the afternoon.

I suspect lower margins news might have been taken as bad news re earnings, divvies etc for this FY. None the less margins in some businesses might not be bad as it might mean that old or excess stock is being cleared, which makes the physical and financial space for new stock which people might want and might be sold, or own design and brand stuff (this all takes time to find people to design it, actually design it, find people to make it, test it, get it made, ship it, market it etc etc). I'm thinking especially Big W here for example.

None the less if one takes a step back, any improvement at Woolies at this early stage is encouraging. Woolies newly instilled management have a fair bit going on with Home Hardware, Masters, the dispite with Lowes, and now the petrol business sale. So right now in fairness improvements in continuing operations are encouraging, but their is a lot more to do, and this will take time, and focus which hopefully will be full focus once the dust settles on the other big things.

Patience will be rewarded, this one will take a bit of time.

All IMO.