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I noticed in the recently released GW annual report (more details here ) that sales this period have dropped in Australia by 11.8%:

Reported sales decreased by 2.7% to £123.1 million for the year. However, on a constant currency basis, sales were down by 2.9% from
£126.5 million to £122.8 million; progress was achieved in Emerging Markets and Japan (+2.1%) and in the Other business units (+7%) while
sales in Continental Europe (+0.6%) were flat. UK (-6.3%), North America (-4.8%) and Australia (-11.8%) were in decline.

This seems like a significantly large amount. So what has made the figures drop so much? Sure there are a lot of issues people would like to soapbox about (namedly outrageous prices, poor staff, etc), but can we narrow this down to a specific set of factors or just the general creep of poor merchandising? (Please keep in mind these figures don't reflect the release of fine-cast or the changes to online distribution etc, as these occurred post-period)

mal wrote:I noticed in the recently released GW annual report (more details here ) that sales this period have dropped in Australia by 11.8%:

Reported sales decreased by 2.7% to £123.1 million for the year. However, on a constant currency basis, sales were down by 2.9% from
£126.5 million to £122.8 million; progress was achieved in Emerging Markets and Japan (+2.1%) and in the Other business units (+7%) while
sales in Continental Europe (+0.6%) were flat. UK (-6.3%), North America (-4.8%) and Australia (-11.8%) were in decline.

This seems like a significantly large amount. So what has made the figures drop so much? Sure there are a lot of issues people would like to soapbox about (namedly outrageous prices, poor staff, etc), but can we narrow this down to a specific set of factors or just the general creep of poor merchandising? (Please keep in mind these figures don't reflect the release of fine-cast or the changes to online distribution etc, as these occurred post-period)

Those figures represent the period June 2010 - May 2011, so they exclude the halting of UK/US-based internet sales to Australia, Finecast, and recent price rise which took place after the financial year end. We won't see the impact of those until GW report their first 6 months trading results for the period June - November 2011 in January 2012.

Having said that, there were a couple of things I can think of that might have had an impact:

1. The May 2010 price rise, which was pretty much as savage as this year's, and
2. The introduction of Warhammer FB 8th edition. 7th edition was very popular with the tournament scene in Oz, and 8th ed not so much (more details of the impact of 8th ed. can be gleaned from listening to back episodes of Podhammer). Traditionally the tournament scene has not been viewed as a major part of GW sales, but I would wager that in Oz this may not have been the case, as in many ways its tournament scene was way more developed than that in the US and the UK at the time. It may have played a much bigger part in a smaller market.
3. Increase in competition. Battlefront, Privateer Press, Wyrd Miniatures, Mantic and Spartan Games in particular seem to be really taking hold in Oz according to the World's End Podcast.

But those are just guesses. There's likely no single cause, but those would be my main candidates.

Osbad wrote:Those figures represent the period June 2010 - May 2011, so they exclude the halting of UK/US-based internet sales to Australia, Finecast, and recent price rise which took place after the financial year end. We won't see the impact of those until GW report their first 6 months trading results for the period June - November 2011 in January 2012.

And won't that make for an interesting read?

Howard A Treesong wrote:And won't that make for an interesting read?

Not really. Here, I'll tell you what it will say so you don't have to wait 6 months in anticipation for it:

"Our sales in Australia/New Zealand are down 16%. The only logical solution is a 17% price increase."

squidhills wrote:

Howard A Treesong wrote:And won't that make for an interesting read?

Not really. Here, I'll tell you what it will say so you don't have to wait 6 months in anticipation for it:

"Our sales in Australia/New Zealand are down 16%. The only logical solution is a 17% price increase."

Makes sense to me

That drop in % is probably why they put on the embargo. They were losing money to internet stores.

You know what this means - PUT UP THE PRICES!

Bat Manuel wrote:That drop in % is probably why they put on the embargo. They were losing money to internet stores.

Which is sensible if you have a near-monopoly on a necessity item. Not sensible if you sell luxury items, in a market with increasing competition, during a recession.

I really don't think anyone is surprised at seeing the decline. However, what is surprising is that this was before the fine-cast and debacle.

I cannot imagine what the past month's numbers has been like.

Osbad, i agree with the WFB and competition points. I do doubt that the price increase made much of an impact.

Phototoxin wrote:You know what this means - PUT UP THE PRICES!

I'm afraid if the prices go up again, this soon, I'm going to finally glue all my figures together into a katamari ball.

Holy_doctrine wrote:

Phototoxin wrote:You know what this means - PUT UP THE PRICES!

I'm afraid if the prices go up again, this soon, I'm going to finally glue all my figures together into a katamari ball.

Katamari 40k anyone? I got a chuckle out of how they were posting their "emerging markets" growth like it was going to suprise us. If they are emerging I doubt a 7% rise is much, however, the falling of sales in an established market (Aus, UK, and North America) would hit them harder. Here's hoping that GW stops being evil money/sales counting robots and get their human parts put back in.

I'm still waiting to hear the official GW position of sales growth! (negative) in Aus. I'm thinking it will be along the lines of "My foot just went down several inches ! ... Sir, i think that's because you trod in a hole... But I'm still going foreward!"

Where does this 11.8% figure for Austalia come from?

The revenue last year was £10,795,000
The revenue this year was £10,630,000
A difference of £165,000, or 1.6%

Strange that you failed to notice the £405,000 opertaing loss, or the £500,000 increase in costs - which may lie at the root of the change in the terms of the sales contract with the online retailers, and relate to the strong Aus$.

Or indeed that the costs of operating are about half of what they are in the UK, but the sales are a third - which might explain the price difference between the divisions of the company.

Still the stock market seems happy with the results, the shares were up 24 today.

marielle wrote:Where does this 11.8% figure for Austalia come from?

Or indeed that the costs of operating are about half of what they are in the UK, but the sales are a third - which might explain the price difference between the divisions of the company.

Probably, but that could be solved if they reduced the number of stores in AUS or even just letting independant retailers take over. Then they would have 0 operating costs and hobbiests would be better off.

To put it in perspective in my home town of a bit over 1 millon people there are THREE GW stores in high profile and hence high rent storefronts in malls and shoping arcades. The only reason for this is a) Advertising and b) To choke out independant store competition. Which has a negitive effect on the hobby as a whole.

At the end of the day I realy dont feel like paying the Australian "Advertising and Monopoly" surcharge that GW charges over here.

I’m hoping the next report has an even larger decline in sales. The sooner GW reaps what the sow, the better.

Still the stock market seems happy with the results, the shares were up 24 today.

Means Jack Gakk.
The institutions buying shares don't have any concept of GW operations.
They will only see the dividends being paid out.

GAW share prices rose when people were spitting feathers about the RoW embargo, price rises and Finecast.

mal wrote:I noticed in the recently released GW annual report (more details here ) that sales this period have dropped in Australia by 11.8%:

Reported sales decreased by 2.7% to £123.1 million for the year. However, on a constant currency basis, sales were down by 2.9% from
£126.5 million to £122.8 million; progress was achieved in Emerging Markets and Japan (+2.1%) and in the Other business units (+7%) while
sales in Continental Europe (+0.6%) were flat. UK (-6.3%), North America (-4.8%) and Australia (-11.8%) were in decline.

This seems like a significantly large amount. So what has made the figures drop so much? Sure there are a lot of issues people would like to soapbox about (namedly outrageous prices, poor staff, etc), but can we narrow this down to a specific set of factors or just the general creep of poor merchandising? (Please keep in mind these figures don't reflect the release of fine-cast or the changes to online distribution etc, as these occurred post-period)

With the embargo, why am I not surprised by any of this?

marielle wrote:Where does this 11.8% figure for Austalia come from?

The revenue last year was £10,795,000
The revenue this year was £10,630,000
A difference of £165,000, or 1.6%

Strange that you failed to notice the £405,000 opertaing loss, or the £500,000 increase in costs - which may lie at the root of the change in the terms of the sales contract with the online retailers, and relate to the strong Aus$.

Maybe the difference lies in the Aus $ / GBP exchange rate differences. If the Oz $ got stronger by 10% while sales decreased 10%, you wouldn't see a difference when compared only in GBP.

Probably, but that could be solved if they reduced the number of stores in AUS or even just letting independant retailers take over. Then they would have 0 operating costs and hobbiests would be better off.

To put it in perspective in my home town of a bit over 1 millon people there are THREE GW stores in high profile and hence high rent storefronts in malls and shoping arcades. The only reason for this is a) Advertising and b) To choke out independant store competition. Which has a negitive effect on the hobby as a whole.

At the end of the day I realy dont feel like paying the Australian "Advertising and Monopoly" surcharge that GW charges over here.

As the Australian division has gone into the red, maybe this is what will happen.

But it looks like GW have decided they are going to make an effort to make the division work, at least in the short term.

I really wouldn't mind GW stores going at all. I shop at my FLGS anyway, who carries a far better range of stuff. The only product I consider going to GW for is Finecast for a faster turnaround on any returns I might need to make.

To be fair though, my local GW store ihas quite a few customers on Thursday night and Sunday, but they just seem redundant when there's a good LGS.

-Loki- wrote:I really wouldn't mind GW stores going at all. I shop at my FLGS anyway, who carries a far better range of stuff. The only product I consider going to GW for is Finecast for a faster turnaround on any returns I might need to make.

To be fair though, my local GW store ihas quite a few customers on Thursday night and Sunday, but they just seem redundant when there's a good LGS.

But of course, you and you alone define the entire Australian market.

It's my understanding, Kouzuki, from speaking to several Australians that few utilize the official GW stores.

Kouzuki wrote:But of course, you and you alone define the entire Australian market.

Was there a point to that comment beyond trying to start an argument?

He was quite clearly just stating a personal opinion.

insaniak wrote:

Kouzuki wrote:But of course, you and you alone define the entire Australian market.

Was there a point to that comment beyond trying to start an argument?

He was quite clearly just stating a personal opinion.

well, any other suggestions as to what to do? All discussions are at the very core, arguments. Differing thoughts and opinions is what drives discussion.

If you look at it that way, I was trying to start a discussion.

Considering several of the stores actively push people away with their policies I seriously doubt it's going to get better. I've been to 3 gw's in the sydney area. The only one I'd even think of going to is the parramatta store as they aren't elitist Dbags. The amount I got talked down to in the other stores, then told I couldn't play because my armies aren't 'based properly' (I seriously don't like the look of most of the bases i can do. and it's way too much work for me to do it 'properly'. I can just pretend it's not there when it's basic black) whereas my FLGS lets me play using anything I damn well please, and sells me the models at a discount... hmm, where am I going to buy/play? The paramatta store I was going to start frequenting before the embargo/price rise/other crap but after... i just cut my ties to GW. If getting a price decrease means no GW stores I'm fully supporting that.
Heck, I'd support that if only to support the hobby itself.

RatBot wrote:It's my understanding, Kouzuki, from speaking to several Australians that few utilize the official GW stores.

Pretty much all of the GW stores in Oz are 1 man jobs, so closed Sun+Mon and only open til 7ish on Thurs at the latest, so not really condusive to use by the over 18 working crowd. I can't imagine they make a lot of money with their shop operations from what I've seen in Sydney, but they absolutely have to be there otherwise they are never going to sell the kids their AOBR boxes as they will never be exposed to the product. Location-wise, the ones in Sydney aren't in "A tier" retail space anyway, the only one that was (Chatswood) moved shops a while back to a less expensive (presumably) location.

FWIW in my experience the staff at the shop have been decent blokes, and not overly pushy at selling you stuff, but there's only so much you can do with a 1 man shop, particularly RE opening hours.

CoI wrote: The amount I got talked down to in the other stores, then told I couldn't play because my armies aren't 'based properly'

FFFF the guys there have done that to me too.

Years ago back when third ed was first released, i bought the box set and painted the space marines. Walked in accepted the redshirts offer (as i was buying the minis he told me i could come in anytime and play him) He tells me "No, you cant play with them like that, what are they? floating in space? you need to fix up the bases before you are allowed to play" He then goes on to explain all the MAGICAL CITADEL PRODUCTS for basing miniatures.

So where were the sales that people in Aus were importing from the UK and US retailers show up?

It couldn't be that this was evidence that internet importers were drastically harming sales in Austrailia was it? Hence the policy at the end of may when they saw the projected numbers... It might even make sense? No... We all know GW should operate at a loss to please a small subset of customers.

nkelsch wrote:So where were the sales that people in Aus were importing from the UK and US retailers show up?

They would show up in the US and UK figures.

It couldn't be that this was evidence that internet importers were drastically harming sales in Austrailia was it?

It's not evidence of that by itself, no. We have no direct evidence that people buying over the internet are affecting Australian sales in theslightest, since we have no way of knowing how many of those people would have been willing to pay Australian prices if buying from overseas were not an option.

If sales pick up next quarter, (since that's where the embargo will have kicked in, sales figures-wise) that would be a hint, though. Still not conclusive, since there are other factors involved... but it would suggest some sort of link. We'll just have to wait and see.

But ultimately, it's not internet retailers that are hurting GW Oz's sales... it's GW Oz's prices compared to the rest of the world that are doing that.

No... We all know GW should operate at a loss to please a small subset of customers.

Nobody thinks GW should operate at a loss. Just that they should stop treating their Australian customers like idiots.

nkelsch wrote:So where were the sales that people in Aus were importing from the UK and US retailers show up?

It couldn't be that this was evidence that internet importers were drastically harming sales in Austrailia was it? Hence the policy at the end of may when they saw the projected numbers... It might even make sense? No... We all know GW should operate at a loss to please a small subset of customers.

When you have five Blood Knights costing 165 dollars, higher than the Battleforce for Vampire Counts which use them, itself is costing 160 dollars, how can you even claim that internet retailers were harming their sales? What customers in Australia are they pleasing exactly? Who were they not putting off with these prices?
How about they start using reasonable prices and the alternative might never have been to use online discount stores like Wayland or Maelstrom.

The problem was always the prices, if they had cut it down to even as much as 30% less, this would not be an issue for them. As it stands we pay far more than Americans have to for no reason, even though currently our dollar is far stronger than theirs and even when it wasn't, we were still close enough that these prices were unfair and unreasonable.