Australian retailer Good Guys leave NZ

RICHARD MEADOWS
Last updated 13:09 30/06/2014

Relevant offers

Industries

Kirkcaldies' boss John Milford to head Business Central Lines company may sell BOP investment Connor reapplies for takeover approval Angry investors tackle Pyne Gould Corp Air NZ legal victory over surcharge appealed Sharebroker eyes civil action against South Canterbury Finance SFO investigates Trends Publishing Lyttelton port workers begin overtime ban Dairy bounce-back tipped after GDT auction Auckland housing market unique

Australian electrical retailer Good Guys is pulling out of the New Zealand market, blaming the decision on unacceptable financial returns from its small-scale business.

Ninety-eight New Zealand staff will be put out of work, although local listed retailer The Warehouse Group has said it will find jobs for as many as possible.

The Warehouse is also taking over the lease of the five Good Guys stores in Auckland's Albany, Wairau Park, Manukau, Botany and Sylvia Park.

The Warehouse Group chief executive Mark Powell said the ability to expand its store network and hire experienced retail staff was a benefit to the company.

The stores will be used across a mix of the group's brands, which are The Warehouse, Warehouse Stationery, Noel Leeming, Torpedo 7 and R&R Sports.

Former Good Guys customers will be able to return faulty products at Noel Leeming stores.

Good Guys first crossed the Tasman in May 2008.

Chairman Andrew Muir said the pathway to carving out a significant market share and acceptable financial return in New Zealand was too far away.

"With only five stores, our business would require significant investment to bring it to a scale that would deliver acceptable returns," he said.

Muir said Good Guys had introduced strong competition to New Zealand, and was proud of what it had achieved here.

The company has a much bigger footprint in Australia, with 97 stores.

Muir said the Australian business continued to beat the market in both same-store year-on-year growth, and market-share growth.

Good Guys said it anticipated the New Zealand exit would be completed by the end of August.

Ad Feedback

- Business

Comments

Special offers

Featured Promotions

Sponsored Content