Hello all,

I've been taking a deep dive on Ramsdens Holdings (LON:RFX) vs H & T (LON:HAT) recently. Both great companies in my opinion. H&T much more traditional, and clearly offers top-notch customer service in-store. Ramsdens a much more diversified offering. Personally I hold both, but feel Ramsdens has much more growth potential.

Ramsdens to me feels like one of those rare companies that is great value on paper and also has an online growth story that is only beginning to materialse and the market hasn't recognised yet.

I wanted to understand how established online each of the companies were, and thought a good metric for how seriously they are taking online sales may be illustrated by how much of their stock is online. So I went onto each company's respective online stores and took a stab at estimating how much of their inventory can be accessed online. I then compared this to the latest data from their accounts on current inventory levels.

H&T: 

557 items online - only jewellary. Approx total value of £392,685. compared to latest inventory on books of £29.157m, so H&T have  1.35% of their stock online.

Ramsdens:

Approx 4920 jewellary items and 936 watches. Approx total value of £5.925m compares to latest inventory on books of £13.36m, so Ramsdens have 44.35% of their stock online. A totally different proposition to H&T.

Ramsdens have more flexible payment offerings, giving the option for finance. Both offer free delivery.

Overall Ramdens certainly seem to have a much superior online offering, and previously this year that part of their business showed excellent online growth. I'm looking forward to seeing how their performance has been at the next update, where I expect to see these online sales looking even better than before. As for H&T; a solid and resilient business that I feel is undervalued, and should do well in this climate, but won't experience dramatic growth.

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