By LIAM DANN
In a reversal of the norm for New Zealand companies, Michael Hill International's Australian retail operation is the star of its latest sales figures, propping up lacklustre results back home.
Figures released yesterday show the jewellery chain's total sales for the three months to September 30 rose 10.4
per cent compared with the same period last year.
But total New Zealand sales dropped 6.6 per cent and same-store sales were down 9.9 per cent in New Zealand.
In contrast total Australian sales were up 17.2 per cent and same-store sales there were up 8.6 per cent.
The growing number of stores in Victoria was helping to boost brand recognition and improve same-store sales figure across the Tasman, chief executive Mike Parsell said.
The chain was gathering momentum as it grew, he said. Established stores in Queensland and New South Wales all benefited from the total growth.
The company had been in Western Australia with just four stores for two years now, Parsell said.
While it had been a struggle they were now achieving strong same store growth there.
Consumers on opposite sides of the Tasman were often in different moods at different times and the advantage of being in both markets was that one could balance the other, he said.
While other New Zealand companies such as Telecom and The Warehouse have struggled to establish profitable operations in Australia, Michael Hill's strategy of infiltrating organically looks to have been a winner.
The company entered Australia in 1987, opening two stores in Brisbane. It was profitable in its second year and had an increase in sales of 166 per cent after three years.
Its Canadian entry last year has not yet borne fruit. It did not release sales figures for Canada.
