Postie Plus flags growth through acquisitions

Friday 18th May 2012

Postie Plus, which sold its Babycity chain of stores for some $4.1 million, wants to double in size through buying rivals and will progressively shift its base to Auckland as part of the new strategy.

The Christchurch-based company is embarking on an acquisition plan as it seeks new growth, and has appointed David Primus as general manager of strategy to oversee the new plan. As part of the strategy, Postie Plus will shift its merchandising, planning and marketing functions to Auckland nearly next year, keeping finance, IT, logistics and human resources in Christchurch until 2014.

"We want to double in size, and while some growth will be organic, we are venturing into extending our range and reach through the acquisition of compatible brands," chief executive Ron Boskell said in a statement. "We will progressively shift our base from Christchurch to Auckland where our greatest growth opportunities lie."

This week, Postie Plus told shareholders its third-quarter sales fell 5 percent at a special meeting where they signed off on the Babycity sale.

The retailer said provisions for relocation costs will be recognised in the 2013 and 2014 budgets, and all staff affected will be offered redundancy and job placement assistance.

Postie Plus appointed former Warehouse and Pumpkin Patch executive Jane Gammon to replace Primus as GM Postie. She will start in the role next month.

The shares were unchanged at 21 cents, valuing the company at $8.4 million.

BusinessDesk.co.nz

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