Christchurch-based retailer Smiths City Group said it was a "no brainer" to expand in Wellington and 20% of its revenue is now from North Island stores, up from zero in 2004.Chairman Craig Boyce told shareholders at the annual meeting that it wa
Christchurch-based retailer Smiths City Group said it was a "no brainer" to expand in Wellington and 20% of its revenue is now from North Island stores, up from zero in 2004.
Chairman Craig Boyce told shareholders at the annual meeting that it was encouraging that first quarter sales were 3.5% ahead of last year.
He spoke about the impact of the "grumpy recession" and the uncertainty of the recovery.
Managing director Rick Hellings said it was a no brainer for the company to expand in Wellington because Radfords and Hazelwoods had closed.
"Right now, Auckland has risks - particularly the roading changes and differing demographics from our current business."
Smiths City opened a store in Porirua in December 2009 and in February announced plans for a store in Upper Hutt.
It now has nine Smiths City stores in the North Island and 17 in the South Island. It also has five LV Martin stores in Wellington.
Mr Boyce said the business had a inherent strength because the high foot traffic and high innovation product range in appliances and the low foot traffic and more traditional furniture and bedding product range fitted neatly together during a downturn when every person in store counted.
"At Smiths City we remain profitable but insufficiently so.
"Management continues to refine our business model and improve productivity. The outlook remains uncertain but we are confident of our competitive position and intend increasing the number of Smiths City format stores as site opportunities occur at rentals the business can sustain."
