Kirks counts retail boom cash

By Phil Boeyen, ShareChat Business News Editor

Thursday 7th February 2002

Wellington department store Kirkcaldie & Stains (NZSE: KRK) says sales rose by 6.5% in the five months ended January compared to the same period previously.

MD Richard Holden passed the good news onto shareholders at the annual meeting on Thursday, noting that the retailer's Christmas Shop in particular recorded a healthy increase in the period. There is also optimism for the current month, with the store's February sale setting a new record.

Mr Holden has outlined a fairly steady strategy for the upmarket retailer for the coming year, saying it will continue to target the quality end of the market by providing superior personal service to customers with an extensive range of excellent merchandise.

"In-store developments will maintain the current high-class shopping environment and will offer an increasingly attractive array of fashion and classically stylish products."

Mr Holden says the planned departmental refurbishments to the businesses downtown Wellington premises are under way and it will take advantage of emerging opportunities to introduce new product ranges, many of which will be exclusive.

"On completion of the project, management is sure that customers and shareholders alike will appreciate the results of the fade-lift that will ensure that Kirkcaldie & Stains remains Wellington's premier department store."

One of the biggest items on the company's agenda is the proposed purchase of the adjacent Harbour City Centre, which the company says is a "sensible and timely proposal."

"The existing tenancies of the Harbour City Complex are the basis of the sound proposition that the Board presents for your consideration," Mr Holden told shareholders.

"Some of Kirkcaldie's retail departments have traded from this building previously and the extension to our business makes commercial sense -as the right opportunities present themselves we can profitably extend our existing retail business."

The company plans to buy the property through bank debt and a 1-for-2 rights issue at $3.50 per share. The rights issue opens next week and closes early in March.

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