Appliance seller goes e-tailing

By SIMON HENDERY

Pacific Retail Group's new chief is leading the country's largest appliance seller on a fresh charge for the elusive e-tail dollar.

Peter Halkett said yesterday that the group would woo internet shoppers through store-specific websites designed to capitalise on customer familiarity with its Bond & Bond, Noel Leeming, and Computer City brand names.

"Our internet strategy is fully integrated with our brand, so you'll be able to go to a Noel Leeming website, look at all the products, and then you'll be able to purchase products," said Mr Halkett, who replaces Stefan Preston as chief executive.

The brand-specific approach contrasts with the e-megastore tack taken by Mr Halkett's predecessor.

A year ago, Mr Preston and business partner Adam Keller launched FlyingPig, an internet venture tied to entrepreneur Eric Watson's retail empire (including Pacific Retail and Whitcoulls) selling books, videos, software and stationary.

FlyingPig planned to expand into music, computers, electronics and appliances, but the site has failed to make money. Last week, Pacific Retail, Mr Preston and others sold out to publisher IT Media.

Mr Halkett said Pacific Retail's plan to launch specific Noel Leeming and Bond & Bond sites would enable it to get the most out of its existing bricks and mortar operations.

"We see it as another distribution method as opposed to FlyingPig, which was a brand-new startup, start-alone activity.

"We know we've got to be involved in the internet, particularly in the consumer electronics area, which is quite strong in internet sales overseas."

The Noel Leeming and Bond & Bond sites are due to be up and running by mid to late next year. An existing Computer City site will be revamped.

In another twist, the sites will pitch Pacific Retail against its former managing director, Greg Lancaster, and another former executive, John Hunter, who launched an online appliance store, Applianceshop, in May.

Mr Halkett also revealed yesterday Pacific Retail's plans to market a new brand of appliances "purpose-designed for New Zealand."

He said his job over the next couple of years would be to fine-tune Pacific Retail's direction after a turbulent period of restructuring and cost-cutting.

"Pacific Retail has been underperforming for the last four or five years but we're well and truly on the road to recovery.

"Noel Leeming and Bond & Bond are superb brand names and they've always had very high levels of turnover. What the company struggled to do is to get profit on the bottom line. The fundamentals were there but what we've done is get our cost structure in line."

Several new stores would be built and others would be expanded. Pacific Retail also planned to open about 20 new Living & Giving gift stores nationwide in the next three years, after buying the six-store chain last month.