Briscoe Group is exploring the opportunity of mini metro stores across New Zealand. Photo / Supplied
Briscoe Group is exploring the opportunity of mini metro stores across New Zealand. Photo / Supplied
Briscoe Group has revealed plans for a new distribution centre, website, and the possibility of launching “mini metro” stores.
The retailer presented the options at its annual shareholder meeting today.
Last week Briscoes told the market first-quarter sales had fallen 2.58% on the year to $178.3 million, weigheddown by weaker homeware sales.
Addressing shareholders today, managing director Rod Duke said it was a real feat to achieve 99.9% of last year’s sales during the 2024 financial year, joking had he known the business was that close a week before the end of the year, it may not have been the case.
“For the last decade, we have shown that our core business has been very strong and resilient. During that same period, there have been massive changes in the competitive dynamics. A pandemic that shut our bricks and mortar operations for several months, and more recently, a real slumber in customer confidence and demand,” Duke said.
“The key factors in that performance have been the quality and the dedication of our team and the execution of strategic initiatives developed over recent years. I think it’s fair to say that the latter is a manifestation of the former.”
Briscoes owner Rod Duke said he was excited about the business's new distribution centre set to be operational next year. Photo / Dean Purcell
On those strategic initiatives, which total more than $100 million over the next few years, Duke believes the launch of its new North Island distribution centre (DC) is the business’s largest single strategic investment in its history.
The business’s current distribution centre has been under strain for a number of years, Duke revealing about 80% of its imported product is being sent directly to stores, as the building only has the capacity for 20%.
Duke sees the new DC as an opportunity for stores to reduce the amount of stock they need to keep on site, suggesting reducing back-of-house rooms from 500-600sq m to 200sq m, increasing room on store floors significantly.
With that extra room comes more space for new brands. The group is targeting global brands such as Adidas and De’Longhi for Rebel Sport and Briscoes Homeware.
The business is forecasting up to $5m in extra revenue per year from the 2027 financial year onwards.
Rebel Sport is also set to unveil its new flagship store design in Panmure later this year including a new footwear zone and improved interactive zones for customers.
A similar flagship store for Briscoes is set to open in the same location in FY27.
Another key area of focus is enhancing the business’ omni-channel experience; there are plans to launch new Adobe websites for Briscoes and Rebel Sport in September this year.
Briscoe Group chief operating officer Andrew Scott said it planned to reduce the amount of stock in stores by about 20%.
“This will allow us to display the stores in a much more inspirational rather than functional manner,” Scott said.
“As of today, we have over 200,000 square metres of space in our 90 stores. If we could free up 20,000 of those 200,000, we’ve effectively got 10 new stores with no additional cost.”
Perhaps the biggest change on the horizon for the business is the introduction of mini metro-style stores around the country.
Targeted for the 2028 financial year, the business is considering opening up to 15 smaller format stores in locations where large formats stores aren’t commercially viable.
Locations such as Tauranga, Warkworth and Gore were all potential options, Duke saying growing population centres are likely key targets.
For Duke, the key investments the business is making over the next two to three years are about unlocking the business’s potential.
“Our goal this year is to protect last year’s profitability. I know I’ve said that before, but we think the way that profit is produced will be quite different than it has been in recent Covid years.
“The group has the capacity to navigate successfully through very difficult times and achieve results that our shareholders, our management group, and the team members can feel very, very happy about. I’m confident we will achieve that again this year.”
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
