That depends on where the value lies. If the struggling chain has value in a good turn around strategy and becomes successful in a very over competitive market then yes buying at the bottom of the price is good, value will be unlocked over time and growth (organic or otherwise) adds expansion prospects. If the value of the chain is merely in the assets and a few strategic locations to be mined into a going concerns for future sale then buy it break it up into smaller pieces and sell it. More profit in the smaller chunks that the whole apple anyway.
However in case of ANG and Woolies you cannot break a mine apart and sell it off easily and to destroy a huge brand like woolies....Besides they not buying competitors and are taking out (or in this case bring the chickens into the coop) strong established locations at a good premium thus keeping future growth profits in-house.
Great strategy if look at it, get some schmo who paid a bucket load to open it under license to build a profitable location with hard work and when it becomes exactly that pay them a pretty shiny "gold watch" premium and then overhaul the location with cost containment and strategy to overhaul the operation into leaner yet stronger version of it former self in the coming periods. Is that worth paying a slight premium and keeping shareholders happy.
Besides all the extra costs can be depreciated through the tax system so they actually score on both ends of the candle. Higher "operating" costs and keeping shareholders very very happy.
But we never know what the real reason is behind business direction.
