OTCPK:HBAYF - Post by User
Post by
Wuggyon Jul 29, 2013 2:41pm
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Post# 21637092
Dodgey Move
Dodgey MoveThanks for posting the transcript. Interesting.
This sure seems like a troubled move. Consumer debt is at record highs, department store retail is on the skids, and what does the Bay do, but go high end?!
"100 million in synergies..." Does opening a bunch of new outlets next door to new outlets from Holt Renfrew and Nordstrom's constitute "synergy" or saturation? "Addressing a broad consumer spectrum" = Outlets beside Wal-Mart? "There might be an opportunity from the ground up to build a new Saks store." If they don't have a clear concept, then where did they come up with 100 million in "synergies?"
"The transaction will be dilutive to EPS for the first three years and accretive thereafter." I bet.
Wonder what Ontario Teachers is thinking. Is the REIT the bone? I'm just an outsider, but you walk through Bay stores these days and you don't see a healthy chain. Call me a downer, but I wonder how long they have left.
[url=https://www.retail-insider.com/2013/07/saks-fifth-avenue-likely-to-open-in.html]Saks Fifth Ave To Open In Canada, HBC Purchase Finalized[/url] (Retail Insider, 28-Jul)