Postie Plus purchase adds to expansion speculation

Postie Plus Group's recent purchase of Ezibuy's school uniforms division Classmates is adding to speculation the retailer is looking at further expansion.

The purchase, announced at the end of last month, has seen the share price rise from 86c to 94c at Friday's close, edging it close to the July 2003 float price of $1.

The 94c closing price is a rise of more than 40 per cent since March.

Chairman Peter van Rij said the company's brands aimed at customers looking for value should bear up in what many analysts are predicting will be a slow downturn for retailers.

PPG businesses include Postie Plus with apparel, Arbuckles with home furnishings and fabrics, and Baby City. The group is to issue its annual results on Friday and is expected to pass its $5 million profit target.

Earlier, sales for the second quarter had led to a profit warning on its interim profit.