Another thing we need to consider with GXL as a long-term holding is their ability to improve their position in the pet staples category. Coles, Aldi and Woolies are in this category and they need to have a strategy for this.
On the retail side, the 800-pound gorilla is at their doorstep. In the US, the top 2 retailers (Chewy and Amazon) captures 80% market share.What is their strategy here? Because in their annual report, they didn't mention anything about this. All they did was address the Amazon concerns that everyone is having.
One of the biggest competitive advantage with GXL is their vet + retail combo. However, is that a big enough competitive advantage?
I'm holding because of those three reasons above.
GXL Price at posting:
$5.35 Sentiment: Hold Disclosure: Held
