KEY POINTS:
Reversing the trend of Kiwi retailers launching across the ditch, an Australian card and gift retail chain has opened the first of its stores in New Zealand and has plans for a nationwide network.
Kenny's Cardiology has five stores in Westfield shopping centres in Auckland and a sixth will open in Lower Hutt, by Christmas.
Managing director Anthony Underwood says the retailer has undergone rapid expansion in the Australian market in the past year and sees New Zealand as its next major opportunity.
"Yes, times are tough [in New Zealand] but there are also opportunities," he says.
"The malls we've gone into were existing malls and if times were buoyant, there might have been a long queue of people waiting to enter and we might have paid a higher price.
"New Zealand doesn't have a specific card retailer, so we saw a gap in the market.
"Our offering is different from what is available.
"We expect Kenny's Cardiology to be popular with Kiwi shoppers. Our forecasts indicate trading in our New Zealand network will be brisk."
The first Kenny's Cardiology store opened in Adelaide in 1986 and last year the franchise chain was bought by ASX-listed Allied Brands, which grew it from 33 stores to 52 in 12 months.
Underwood says Kenny's six initial New Zealand stores will open as company-owned outlets to give potential franchisees a good look at the concept before they consider buying a franchise.
"We plan to have 30 stores in New Zealand within three years."
