F&P appliances says US distribution set to increase

1.00pm

Whiteware manufacturer Fisher & Paykel Appliances Ltd today said it is about to significantly increase the number of US retail outlets stocking its products, but Harvey Norman is about to cease selling its products in New Zealand.

Fisher & Paykel Appliances had reached an agreement to supply US home improvement chain, Lowes, with Fisher & Paykel branded appliances, the company said in a statement

Lowes has nearly 950 US stores, and the deal will see Fisher & Paykel potentially increase distribution by around 50 per cent across the country.

Fisher & Paykel Appliances managing director John Bongard said the deal would give the company an " exciting opportunity to take our brand to a new level".

"We see Lowes as being complementary to the highly-valued existing retail network that we have already established in the United States."

Meanwhile the company also said appliance retail chain, Harvey Norman, had decided to withdraw from its Exclusive Dealer Arrangement with Fisher & Paykel Appliances, as from 1st July 2004.

Fisher & Paykel Appliances did not expect the change in distribution to materially affect its earnings as its existing distributor base would ensure the brand remained well represented in the marketplace.

- NZPA