Aussies' bold move outdoors

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A sluggish retail environment has not stopped an Australian company investing at least $15 million to establish 10 outdoor equipment stores across the North Island by Christmas.

ASX-listed Super Retail Group already operates the Supercheap Auto retail chain in this country and says it spent two years planning its latest move into New Zealand.

The company plans to eventually have a network of 20 Fishing Camping and Outdoors stores nationwide.

Super Retail chief operating officer Steve Doyle said FCO would occupy a gap in the market.

"You've got mass-market retail such as The Warehouse and hardware stores, and then there's the other end of the spectrum which is the specialty stores that typically focus on one area, whether that be boating or fishing or barbecues," he said. "Our intention with FCO is to create a one-stop shop for people that love the outdoors."

The company said it had fused its two Australian leisure businesses - Ray's Outdoors and Boating Camping and Fishing - to create FCO especially for New Zealand consumers.

The first store opens in Manukau today.

"We will taylor and tweak our offer before we launch it more officially before Christmas," Doyle said.

He said other sites would soon open in Whangarei, Tauranga, New Plymouth and Henderson.

"There's another five [site locations] still to be named before Christmas."

Doyle said the firm believed providing equipment for so many different outdoor pastimes under one roof would help FCO rise above a depressed retail environment.

FCO would not carry out aggressive discount campaigns to drive sales, he added.

"We certainly will promote - we'll have catalogues, press ads, radio ads and TV ads. But our price is not our leading point of difference."

New Zealand Retailers Association chief executive John Albertson said launching FCO was a "courageous move", given the current retail environment.

"If they get their product, pricing and ranging right then I think they could well be quite successful," he said.

Super Retail reported a 16.4 per cent increase in full-year group sales to A$1.09 billion ($1.37 billion) this week, while earnings before interest and tax lifted 37.3 per cent to A$87.5 million ($110.3 million).