Warehouse turns up the volume
Claire Rogers talks to Tim Morris about The Warehouse and its new acquisition, Noel Leeming.
“In its heyday, 80 to 90 per cent of New Zealand households visited the red sheds at least once a year – a better strike rate than the Catholic Church in the Middle Ages, says Tim Morris, director of retail research company Coriolis Research.”
Morris says brand quality has long been a weak link for The Warehouse, particularly in electronics and whiteware, and this deal gives it serious leverage with brands that may have resisted a red sheds presence.
“If Sony doesn’t want to sell to The Warehouse then suddenly Noel Leeming doesn’t order anything from Sony.”
Morris says the move is bold but calculated.
“They say they’re the place where everyone gets a bargain. Well, they think they’ve got a bargain. The proof is in the pudding. Can they create value out of what they’ve bought?”
The full article can be read online.