Supplement retailer Shotgun Supplements has been sold by its owner The Warehouse Group to NZ Muscle Supplements. NZ Muscle has assumed all the business assets of Shotgun Supplements, including its ecommerce store, from today.
Shotgun Supplements was administered as part of The Warehouse Group’s Torpedo7 Group businesses, which also include 1-day.co.nz and No.1 Fitness.
“We are selling Shotgun Supplements as it no longer fits with our core brand proposition and we want to focus on the expansion of the T7 business,” says Tim Edwards, chief executive officer of Noel Leeming and Torpedo7 Group.
“Torpedo7 will continue to sell nutrition products that align with our outdoor customer base and which have a good fit with the growing the Topedo7 business, which opens eight new stores this year.”
“We are delighted that the business is going to such a well-established New Zealand brand as NZ Muscle. We are confident they will provide great ongoing service to our customers.”
In the latest available annual report referring to Shotgun Supplements, that for 2016, The Warehouse Group says its strategy regarding Shotgun Supplements was to work on turning around trading performance through a more aligned customer offering, growing its customer base and improving the cost of doing business.
Torpedo7 Group grew 6.1 percent over the 2017 financial year, reporting an operating profit of $2.7 million. This represented a decline of 20.9 percent from $3.4 million in FY16.
The Warehouse Group has not disclosed the sale price of Shotgun Supplements.
Dion Roosenbrand, founder and director of NZ Muscle, says Shotgun Supplements customers will notice no change in their service.
The terms of the sale provide for a week’s overlap of customer service from the existing call centre to ensure a seamless transition of the business.
Shotgun Supplements’ home brands, including Snow White and Shotgun Supplements, will be sold on NZ Muscle’s website, and gift vouchers will be honoured through NZ Muscle.
“Acquiring Shotgun Supplements is an exciting move for NZ Muscle,” says Roosenbrand. “The purchase gives NZ Muscle a significant increase in market share and will allow us to focus on further expanding the business into other avenues in the future.”