Guinness Appliances shuts its doors

UPDATED
One of the Western Bay's oldest businesses, 100% Guinness Appliances, is closing.
Falling sales over the past five years has forced the family-owned business to shut its doors on May 31 in its 104th year of trading.
It has become an iconic brand in the Western Bay, after starting out as Guinness Brothers general store at No 1 The Strand in 1908.
But the business has in recent times struggled to keep pace with Australian bulk retailers, which arrived in Tauranga with bigger marketing budgets and stronger buying power.
"The competition got so tough and we've had to pack it in," said Wayne Hughes, whose family company Hughes and Cossar Group Holdings took over Guinness Appliances in 1999.
"For five years the (Guinness) business has been unprofitable but we were aware of the strong loyalty in the Bay and we kept it going ... far longer than we should have," Mr Hughes said from Auckland.
"This is a sad time, and the staff - some of them are long serving - have been aware of the situation. They are the ones who have stood behind the tills each day and seen the business disappear.
"It is an orderly close down and we will meet all our obligations to staff and trade customers," said Mr Hughes, who owns Guinness Appliances with his two sisters.
Their grandfather Cyril, who established a chain of liquor outlets, formed a friendship with the Guinness brothers, Sid and Jack, and made a deal that when their family wanted to give up their liquor licence in Tauranga they would buy the wholesale outlet in Harington St.
Hughes and Cossar took over in 1978 and still owns the building that is leased to The Mill Liquorsave. Over the next 22 years, Hughes and Cossar bought shares in the Guinness appliance business which had earlier taken over Christies Appliances and Selectrix (formerly Wrightson) in Tauranga. Mr Hughes said Guinness Appliances' sales in 2010 slumped 35 per cent, after having falls between 15-20 per cent over the previous four years.
Over the past six years, Hughes and Cossar closed Guinness stores in Greerton, Papamoa, Katikati and Waihi, and then Owens Place at Bayfair just before Christmas.
Two home furniture stores in Katikati and Grey St in downtown Tauranga closed in the last two years, and the service centre in Glasgow St shut in July last year.
"We prided ourselves on service and stocking spare parts - but nowadays people will chuck away their appliance and buy another one."
Guinness was left with appliance stores in First Avenue and in Te Puke's main street, employing total staff of 16 after falling from 40 full-timers and casuals three years ago when it celebrated its centenary.
Mr Hughes said the body blow was delivered when Guinness Appliances lost its exclusive dealer agreement with Fisher and Paykel last year.
"That helped us in the old days. Then Noel Leeming started offering Fisher and Paykel appliances at 20 per cent discount and we were supposed to be the exclusive dealer in the Bay.
"It was a bit awkward. Fisher and Paykel decided to sell to everyone," Mr Hughes said.
"The 100% organisation is a big buying group in New Zealand, but we couldn't buy as well as those Australian companies," he said.
Hughes and Cossar, now largely a property-owning company, still owns the Guinness Appliances buildings and will re-let them.
Guinness will be holding a closing-down sale at cost prices. The first sale begins in Te Puke on April 1 and then move to the Tauranga store on May 1.
Guinness general manager Errol Hotham said: "The stock will be priced better than anywhere else."
"We are pretty devastated. We have a great core of staff who have rolled their sleeves up in the recession and made the best of it.
"At the end of the day, the directors have made a decision to bow out in a dignified manner. Hands on our heart, we are proud of what the company has done for the past 103 years."