KEY POINTS:
Another publicly listed New Zealand retailer is basing its chief executive in Australia.
The Melbourne-based chief executive for Hallenstein Glasson Holdings, Shayne Quanchi, faces the task of expanding the company from a base of just 25 Glassons stores across the Tasman.
She will not be the first Aussie-based
head for a Kiwi retailer.
Michael Hill International chief executive Mike Parsell is in Brisbane and has led the company into a period of expansion.
But analysts point out that while he also reports to a New Zealand chairman, Parsell works from within an Australian head office structure and from an operation that is bigger than Michael Hill New Zealand.
Macquarie Equities retail analyst Warren Doak said New Zealand outlets for the company's Hallensteins and Glassons chains had limited prospects for growth.
It made sense to focus on the comparatively buoyant Australian retail sector, he said.
But the company had not had much success in Australia so far.
"They ought to be doing better and that is something that they will want to address."
Forsyth Barr retail analyst Guy Hallwright said Glassons in Australia had been doing okay.
"But it is really just head above water stuff.
"It's a very interesting move and clearly signals a big focus on the Australian market," Hallwright said.
The company closed its four Hallensteins stores in Australia in 2003, when it had 15 Glassons stores there.
It now has 25 Glassons stores across the Tasman, but in the year to August 1, 2007, the company only opened one new Australian Glassons outlet.
Group chairman Warren Bell said New Zealand outlets provided about 90 per cent of the company's profits.
On that basis the 25 Australian Glassons earned about $2.1 million last year.
"The appointment is strategically significant in that it supports our determination to strengthen both our presence and position in the Australian market," Bell said.
Quanchi has worked as business manager for Myer handling the Miss Shop and Young Men's brands, and was previously with Just Jeans.
She said the challenge was to develop the New Zealand business while capitalising on the "fantastic" growth potential across the Tasman.
On January 25 directors advised that group sales and gross margin for the key trading period of December had been equal with last year.
While sales pre-Christmas were patchy, post Christmas sales had made up for these.
MOVING CLOTHES
* Hallenstein Glasson Holdings has 36 Glassons stores in New Zealand and 25 in Australia.
* In New Zealand it has 47 Hallensteins stores and three stores under the Storm brand.
* Analysts regard the company as a good operator though it is poor at communicating with the market.
* Longtime chief executive Cliff Kinraid resigned suddenly on May 31.