David Jones is part of my spare change portfolio, which means it is just from extra cash I don’t need.
Today’s AGM was just like any other boring AGM’s, but if there was one thing I got out of it, it has to be most products have not been price harmonised yet despite the board’s continual emphasis on price harmonisation. It is likely to take a long time before things will get competitive again. Price harmonisation refers to how retailers overcharge Australians for pretty much everything, so suppliers can charge Australian retailers a premium compared to other countries. Since online shopping got mainstream, as well as the high AUD so everyone is going for overseas holidays, every Australian now knows where to find goods to buy for substantial discounts. Subsequently, local retailers now have to renegotiate with their suppliers to remain competitive.
For DJS to become as competitive as it used to is likely to be a very long journey. I don’t think it will die off in the foreseeable future, on top of good dividend payout, I can hold onto this for years to come.
Oh and one more thing I’ve noticed, the chairman who is about to retire, I think he should really be retiring. He didn’t seem to follow his own company as much these days. He didn’t seem to know many small things now and needed his board to reaffirm a lot of his easy answers.