Since the appointment of Roy Campbell as chief executive in May last year, Smiths City Group has seen its best annual results since 2005. Over the past year, the listed company has shown a renewed emphasis on improving core operations and expansion, a move that has paid dividends for the Christchurch-based firm.
Smiths City Group is a holding company active in three industries: retail, property and consumer finance. Its retail branch specialises in appliances and furniture and operates 29 Smiths City-branded stores.
The group reported a 2.4 percent increase on same store sales to $201m, up from $196m the previous year
Chairman Craig Boyce says: “We’ve reduced costs and improved our retail performance. The changes have successfully unified the company under the core brand and re-energised the business.”
Early in 2016, Smiths City made its first move into the Auckland market with the purchase of the three-store Furniture City business.
Along with this expansion, Boyce noted the elimination of loss-making parts of the business such as the appliance retail stores and non-core business activity such as the Alectra appliance service operation. Appliance servicing has now been outsourced.
“We have challenged every aspect of the way we do business in line with our desire to revitalise this near century-old New Zealand retail chain,” says Boyce.
Boyce also mentioned the restructuring and establishment of the management team.
“We see considerable opportunity for growth but will take careful steps to ensure that profitability is enhanced as a result,” says Boyce.