Perhaps this bit of research will help those deciding about...

Perhaps this bit of research will help those deciding about Millers/Wharehouse Groups future.

In comparison to many retailers discount variety have: greater resilience to economic downturns due to their focus on basic everyday products and lower average price points; less exposure to frequent changes in fashion and consumer tastes; and broader-based
appeal to value-conscious consumers due to a product range combining low cost basic everyday requirements with bargains arising from an assortment of opportunity buys. (Holst Research)

Some comfort perhaps given the articles in the weekend FR (ie comming downturn in retail spending.)

Investment View (overall) - MRL's diversification into Discount Variety has undermined its performance directly and indirectly through a loss of focus on Apparel, which had historically been a market leader in terms of cost structure. With the founder, Ian Miller, now heading Apparel and the resignation from the Board of its sole Discount Variety member, we believe that MRL is strategically focused on Apparel. We believe that a potential spin-off of Discount Variety would ultimately be positive for the group.

Investment View (over the next 12 months) - Our BUY recommendation reflects our 12-month view. Notwithstanding that the attractiveness of the stock as a yield play has been decimated following the Board's proposal to pass the total FY05 dividend, we believe that the share price has bottomed and that upside will emerge from consolidation within the Discount Variety industry.

12 Month Target: $1.26
Recommendation: Buy

Source (Aegis)

Consensus from 8 brokers is Underperform and average HOLD

Hope this helps.