to "harness the power of ValueVision's assets and create significant value for shareholders."
Will say that the CG/CC effort at the very least has posed a question that I think should be answered by our mgmt.
Yes we know about lowered ASP; broader and deeper merchandise; to be the HQ for Shopping, etc...and we fully expect results that reflect the success of that strategy.....BUT....how do we truly capitalize on the assets we have? Online, Social Media, Wireless, Tablets and that extremely expensive Cable/Satellite footprint?
Can SHQP be a multi platform retailer that can really change the game?
Marubozo, an excellent question. The strong work that Keith and his team put in to developing and executing the turnaround strategy was nothing short of excellent. The vision statement offered by the team has been promising but somewhat muddy. They probably articulate the strategic plan better to their associates than to the public forum for obvious reasons but a conference call once a quarter attempting to put lipstick on the pig is not enough to convince anyone that there is much in the way of power tools in their repertoire. The e-commerce has developed as a mix percentage very well prima facie but the total productivity of on air sales is almost laughable when backing out the e-commerce sales. Why ? Too much the same for sure. Not exciting and delighting the customer base for sure. What can be done ? A lot. And it may get done with the threat of the Clinton Group providing a lever and a whip to inspire some change in focus. The real innovation stopped in my opinion when the turnaround became evident. Could be why it slipped a little as well. I do expect some modest improvement this year and that is a good thing but I see no chance of a third ranked tele- shopping channel being able to drive the change required and win the hearts and minds of their competition's customers to an extent that will bring explosive stock growth. There is no take over premium that can be priced into the share price at this point in time either. Muti platform is possible but the broadcast must be strong enough to drive the other channels. So my answer is NO.
Fabricone1, thanks for your response. Not sure you can really identify sales driven strictly by online vs TV as the company has never broken them out like that. I do agree that the energy sagged once turnaround #1 was achieved...only to reinvigorate for turnaround #2 (which on the overall list of turnarounds for VVTV is probably #8 and #9)....and now we have a CG/CC inspired threat which one would hope will serve as the wake up call needed for current mgmt to take the action needed to finally, at long last capitalize on the assets we have paid so dearly to attain. I do not agree that stealing customers from Q or H is the key however; think it more about attracting new customers from wherever they shopped before. 1.2M out of 315M potential US customers is piddly penetration; how do we ever capitalize on the 86M homes we pay so dearly for?
Nope. But they can grow modestly and take some market share from the others. They don't have the resources to execute a game changing plan. But, they can provide a nice return for shareholders if they can continue to build ebitda and leverage their fixed cost structure. Don't know that I'm confident they can do that over a period of time but I think they can over the next year
While I, like you, rs, think management can gain share and build EBITDA next year, I actually think it may be easier in the couple of years thereafter. During the next 12-18 months they will still be reducing the airtime of jewelry and (particularly) watches, a process that depresses sales growth somewhat. In addition, on the cost side they will still be cycling through the short term impact of higher distribution fees related to channel upgrades (which may only really pay off after several quarters) as well as the higher fulfillment expenses (as a percent of sales) related to lower ASP (at least for the next two quarters). And then there is the potential impact of the name change, which I doubt will be major, but which may not be totally insignificant for a few quarters. I think they can plow through in pretty good shape, but I do think it will be easier in calendar '15 and '16 to show really good momentum.