Unions are losing their presence in the Grocery
Look at what Kroger is doing: Central proccessing
Turning transportation over to outside
third parties that use nonunion labor, and their
warehouses over to management groups.
fast becoming the number one grocery seller in the
All companies that compete with the Chains and Mega
Retailers must become leaner to survive.
delivery system adds COSTS to product at the retail level.
Storing, moving, accounting and financing of inventory are
prime targets for cuts and reductions, they always have
Just look around at what the Industry is doing to cut
costs and the idea that Nash is Anti-Union may be
wrong, they are just trying to survive the
nightrider- I agree with some of your thoughts, but I must
point out the one phrase that overshadows your others,
"perhaps they should go out of business"!
statement shows that you are more loyal to your trade union
than your company and this attitude is the very reason
that companies fight unions!
I live in a strong
union area, I am a past member of the UMWA, and worked
in and managed a union shop. I think the stucture
that unions bring to the work force can be beneficial
for companies and employees, but this industry is no
longer able to financially support increasing labor
costs, without productivity increases. If you or your
union can provide productivity gains, then you stand a
chance to make it in the ultra-competitive future, if
not, then your trade union card has an expiration date
that Walmart would purchase Nash but a merger
with another larger company is always likely. And
remember the positives which is the stock is still above 2
( so why the complaining?) so we are very much
still in the game and a bad quarter or 2 can happen to
any company. And new programs and new management we
can find the wayout!
Wise musings you are
With the Kmart deal done with fleming, the logical
course of action would be a merger.
operations would be a fit together to compete against
However, could walMart be watching all of this with
Would little ol' nash Finch fit the WalMart master plan
for the Midwest?
Stay tuned for more!
SWY bought Randalls in TX - They are a MAJOR
RETAILER not wholesaler! Comparing NAFC to Randalls is
like comparing apples to elephants.
Did anyone look
closely at 2nd quarter numbers? I heard they contained
some one time gains in excess of $1 million, so things
really were worse than they appear. Can anyone verify
this past week of the food wholesaler in Texas
went out at approximately 0.8X sales. That was how the
deal was valued. I am speculating but it seems likely
that NAFC as a regional player would make sense as an
acquisition for any larger player that wants to dominate the
upper midwest and can achieve the efficiencies that
would come from such a merger. I don't know what
special factors drove the pricing of the Safeway
purchase, but if you use the 0.8X sales multiple as a model
for the possible pricing of a NAFC purchase you come
up with a winning position given the stock is now in
the 9.5 range.
It is unlikely that the math
will work out that well given almost $4 Billion in
sales and a market cap that is about $110 million. It
is plausible that as new management is able to
report better numbers and put "the bad stuff" behind
them, that NAFC will be scooped up. As for the person
who was concerned about the bad Q2 numbers, not to
worry. There is only one analyst following the stock.
He/she was expecting $0.31/share and didn't get it but
that isn't a big deal now. It is assumed that
management is in a rebuilding phase. The Street gives some
grace to such a time period. You can't report lousy
numbers forever. Thus, it is often best to take a couple
of quarters, make the tough decisions to restructure
and get all of the "bad" news out that you can.
As for the stock moving with the bad Q2 report, I
think it unlikely. Anyone who has been inclined to sell
the stock over the past year has already done so.
With little selling pressure -the stock is likely to
drift until the nubmers start to shape up and the
market takes notice of that. The other factor that will
up the price will be the expectation of industry
consolidation and the fact that NAFC could be a prime
I am certain the decline is still reflecting loss
of Grand Island business and several other wholesale
closings where business was not transfered to an existing
As predicted earlier, FLM and NAFC -- starting to
look more and more like that puzzle fits.
all told me how stupid I was when I brought that up
when both stocks were around 7. It is still alive and
is actually starting to make sense for both parties.
I don't think Ron ever worked at KM, but Art K
did. Still, its too bad NAFC didn't get some of that
huge KM pie, especially considering the MI
I expect we will see some downward pressure on the
stock price next week as the weak 2nd quarter results
hits the trade press.
Does anyone know why the 8-9%
decline in wholesale sales?
When Ron said he was going to get the stock up to
$40.00 a share in two years, you would think that he had
a great plan to get it there. Like getting some
real good new business, "K-Mart", since all of them
had originaly worked there.
They would have
known that K-Mart would be looking for a grocery