Ever since CML announced the gradual phasing out of the discount card, many here have bagged hell out of CML and while I agree with some posters that service at Coles/Myer (all stores) needs major rectification, as does their central buying centre, who for years have been nothing more than "prima donna's" and were top heavy!!
Regardless of CML's shortfall's and inherant problems, one must also realise that it was in CML's bid to win you over as a loyal customer that they introduced the discount card, this was a bold move and one which Woolworth's have not ever even contemplated
Some have been critical of Myer Stores and staff shortages on the shop floor. Believe me this is now the way of large department stores throughout the world, perhaps having started in ALL major stores in USA about five years ago.
As a result of the introduction and now cancellation of the discount card everyone is after blood. I happen to hold shares in both CML and WOW, and yes, WOW have been a great performer but don't believe for one minute that WOW don't have problems and they too can be found lacking in some areas also.
Why is it that WOW shareholders never demanded a card at the time that CML took the decision to issue its shareholders with one? The card issue by CML is ONE of the major reasons why it is suffering today and as the CEO of WOW himself stated on Business Sunday (soon after CML had made its decision to issue cards) "We have never contemplated it, not now or in the future, it would be an administrative nightmare and a drain on company profits and shareholders dividends."
I guess one can say WOW were correct, and none of us like to loose a priviledge.
How much upside in CML? Well on today's price far more than WOW.
CML Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
