opinions on recent weakness - opportunity or trap?, page-5

Some retailers are facing a GRIM future. Of that there is little doubt. The greatest pain will be in HVN and JBH, and mall REITS, but not Bunnings (somehow hardware/home reno aren't being detrimentally effected, cosmetics too).

One realistic near to mid term scenario I see unfolding is that HVN and JBH will mount robust defenses of their market share by creating EXTRA advertising, including print. I can see their campaign now: "Little Aussie Battler Slashes Prices AND Surprise In-store Deals!!" NB: IGL also has several other arms, eg. Kalido for creative, Blue Star web, direct mail, etc.

I believe the onset of Amazon will therefore Boost business. And with an ROE circling 20% management is demonstrably skilled.

OV

PS savvyinvestor, solid and appreciated post from possibilities to the way you see it, fwiw we're in approximate agreement.