Aust e-tailer plans swoop into FlyingPig's space

By KARYN SCHERER

One of Australia's most ambitious e-tailers plans to expand into New Zealand in a move expected to provide further impetus for local internet sales.

Dstore, which started in Australia last November, aims for a New Zealand launch in May and is believed to be talking to its New Zealand equivalent, FlyingPig, about a potential partnership.

The company, which includes Australian media mogul James Packer among its backers, offers toys, sporting goods, health products, videos and DVDs on its web site.

Former New South Wales premier Nick Greiner recently resigned from the board of Coles Myer to become its chairman, and it also has links with listed retail chain Rebel Sport.

It has signalled ambitious plans to eventually buy a national retail chain to boost its physical presence.

The owner of Rebel Sport in New Zealand, Rod Duke, confirmed yesterday that he was keen to strike a deal with Dstore.

Mr Duke, who also owns the Briscoes chain, said nothing had yet been settled.

FlyingPig's executive chairman, Stefan Preston, was also coy about Dstore's claims that the Australian company could provide stiff competition for FlyingPig if the two companies end up going head-to-head.

However, Mr Preston confirmed that FlyingPig was looking seriously at the Australian market.

"It would be sensible for us to enter into some kind of cooperative arrangement with overseas players in order to expand our considerable intellectual property base and strengthen our position in our home market."

FlyingPig is today expected to announce an affiliates scheme, similar to one already run by Amazon.com, where it will pay other e-tailers to refer customers to its own site.

It has previously warned that there is room for only one online department store in New Zealand.

Although books now account for two-thirds of its sales, it also offers videos, software and stationery and will shortly expand into travel and music.

While both FlyingPig and Dstore have indicated they are keen to eventually list on the stock exchange, neither has yet made public any sales figures.

Their moves also come amid conflicting reports of e-commerce trends on both sides of the Tasman.

A local spokesman for the Boston Consulting Group, Rick Boven, said yesterday that he believed the internet was reaching a "crucial milestone," where the mass population was finally catching on to its potential.

However, research had shown that more than a quarter of people using the internet to buy goods in New Zealand had been put off for either technical reasons or delivery problems.

Dstore


Flying Pig