Auckland four-store discount chain The Appliance Shed has been purchased from its majority owner Fox Group by Noel Leeming Group, owned by The Warehouse Group.
The Appliance Shed has operated in Auckland for 15 years selling appliances. It specialises in factory seconds and thirds, supplier over-stocks and end-of-line product ranges.
The sale will see its Glenfield, Henderson and St Lukes sites become Noel Leeming Clearance Centres, and the store in Manukau will turn into a Torpedo7 store. The stores will begin to transition to their new store formats from the end of this month.
Noel Leeming currently has one clearance centre in Penrose, which Noel Leeming and Torpedo7 chief executive Tim Edwards says is performing better than expected.
“Our customers have told us they want more opportunity to buy from our clearance stores in the Auckland region,” says Edwards. “This deal with the Appliance Shed offers us a great regional footprint to provide the high-quality clearance retail experience our customers are looking for from our brand.”
“While the Shed is currently profitable and sustainable,” says Guy Howard-Willis, chairman of Fox Group, “the fundamentals of the appliance market are driving an ever-increasing premium for scale. We’re very pleased therefore, to have found such a good home for the staff and customers of the Shed in Noel Leeming Group, the market leader in New Zealand.”
“In its handling of the Good Guys purchase several years ago, Noel Leeming proved its ability to manage the complexity of such transitions, whilst minimising disruption for staff, customers and suppliers. We look forward to working with NLG to transition the business across to them through July and August, with a focus on ensuring both a seamless customer experience and smooth transfer of staff.”
At the end of June, The Warehouse Group’s Torpedo7 Group sold off supplement retailer Shotgun Supplements for an undisclosed sum.