Warehouse buys Insight Traders for undisclosed sum
BUSINESSDESK: Warehouse Group, the biggest retailer on the NZX 50 Index, has bought import specialist Insight Traders for an undisclosed sum in a bid to better its bargain sourcing capabilities.
"The purchase of this business is a good fit with our existing initiatives and will improve our ability to be the 'House of Bargains' and 'Home of Essentials' for New Zealanders," chief executive Mark Powell says.
It will enable the Auckland-based company to provide a "more extensive range of products" and an alternative source of bargaining products for the group's recently launched one-day deal website, Red Alert.
The deal is expected to be completed by the end of this month.
Earlier this month the Warehouse reported a 14% drop in full-year earnings to $65.2 million, meeting its own guidance, and said it expects retailing to face "mixed" trading conditions in 2013. Sales rose 3.9% to $1.7 billion.
Warehouse shares last traded at $2.90 and have shed about 3% this year.