Baby Bunting has opened its first New Zealand store in Auckland's North Shore. Photo / Supplied
Baby Bunting has opened its first New Zealand store in Auckland's North Shore. Photo / Supplied
Australia's largest baby goods retailer Baby Bunting has expanded into New Zealand, and has expansive plans for at least 10 local stores.
The ASX-listed retailer that clocked more than half a billion dollars in sales last year and has 65 stores throughout Australia, opened its first store in Albany, Auckland,over the weekend and has set up a 5000sq m distribution centre in Wiri.
It sells a wide range of baby brands, including under its own private label goods, including clothing, Manchester, prams, high chairs and car seats under the brands Jengo, Bilbi and 4baby.
Approximately 45 per cent of its sales come from its private label goods.
Baby Bunting general manager of operations Michael Pane said the company had been looking at launching into New Zealand for about two years. It would have launched here last year had it not been for Covid-19 causing delays, he said.
It has its eyes set on expansion both across the North and South Islands. With its second New Zealand store set to open in Christchurch in the first half of next year.
"The ambition at the very least is to have 10 as part of our network plan, more than likely more than that. It is a big market - $450 million addressable market opportunity," Pane told the Herald.
"The greater proportion of the addressable market is certainly in and around Auckland, but there are a number of stores planned for the North Island and some of the more regional areas as well - spread right across the country."
Inside Baby Bunting's store in Auckland's North Shore. Photo / Supplied
In addition to another nine stores in New Zealand, it has plans to open 30 more in Australia.
"We've still got considerable opportunity in Australia. At this stage we're looking at a network of at least 100 stores in Australia so we have a little way to go. We have another four to six stores to roll out [there] in this new financial year, and hopefully beyond Christchurch it would be great if we can open additional stores in New Zealand in this financial year as well," said Pane.
"There's definitely opportunity in the country for us, and certainly for the consumer it presents opportunity to get more goods under one roof."
Michael Pane, general manager of operations for Baby Bunting. Photo / Supplied
Pane said the market was currently underserved in the sense that there were not many physical baby goods retailers offering an expansive range of goods in one place.
Baby Bunting has spent A$1.5 million on establishing its operations in New Zealand.
Online orders through its local website are currently being fulfilled out of its Albany store, it is also operating a click-and-collect service.
In the year to June 26, the retailer grew its sales to A$507.3m and posted a net profit of A$19.5m, up 14.6 per cent. It paid a final dividend of 9 cents per share.
Its shares have traded slightly down this year, sitting at around A$4.70 - down from a recent high of A$5.16 in March.
