Close
 

Australian department store David Jones to take over Kirkcaldie & Stains

  • News
  • June 4, 2015
  • Sarah Dunn
Australian department store David Jones to take over Kirkcaldie & Stains

Kirkcaldie & Stains is 152 years old. It announced this afternoon that it will be replaced by David Jones’ first New Zealand outlet by mid-2016. Kirkcaldies will trade under its existing name until late January next year before reopening as a David Jones store in the middle of 2016.

David Jones has expressed the intention to offer employment to the majority of Kirkcaldie & Stains staff.

The David Jones brand is based in Australia, but it is owned by Woolworths South Africa. It had formerly been listed on the Australian stock market, but was taken back into private ownership last year after selling for A$2.2 billion.

Kirkcaldie & Stains has recently been struggling to maintain profitability. In its most recent financial report, it posted an after-tax loss of $501,000 in the six months ended February 28.

Last year’s profit ending February 28 wasn’t sizeable, as it made $563,000.

It reported a net loss of $6.5 million in August and had to sell its Harbour City Centre building for $45.85 million to pay off various write-downs, as well as $23.5 million in bank debt.

John Milford, Kirkcaldie & Stains’ CEO of eight years, resigned in December. Former managing director Philip Shewell stepped up as acting CEO.

Kirkcaldie & Staines chairman Falcon Clouston says the current retail environment has changed radically over the past decade, and Kirkcaldie & Stains has sustained trading losses from its retail operation for the last seven years. 

“As a single large format store we lack the buying power and scale needed to compete with multi store regional and global operators,” Clouston says. “Those operators have the ability to create their own brands, extract competitive pricing from suppliers, and establish platforms for on-line offerings which a single store such as Kirkcaldies simply cannot cost effectively do.

“This has been reflected in the retail operations struggling to make money for several years. While we received substantial funds from the sale of the Harbour City Centre, the board did not see how investing those proceeds in the retail business could be justified when we are faced with the much greater competing pressures from multi-store operators.”

Under the transaction, David Jones will take over the Lambton Quay main store lease and will pay around $433,000 cash for the name Kirkcaldie & Stains. The company will also have the option to acquire the fixed assets of the retail business for a further $500,000.

Stock is not included in the sale, and on May 31 was valued at approximately $8.3 million before provisions.

The transaction will take place on February 1 next year. It requires shareholder approval at a meeting expected by the end of July, plus consent from the landlord of the Lambton Quay store, a satisfactory seismic assessment report and approval from the Overseas Investment Office.

Retail NZ welcome the news. Chief executive Mark Johnston says having a company like David Jones investing in the New Zealand retail market is a "vote of confidence".

“Retail in New Zealand is already highly competitive, and the arrival of David Jones will offer more choice for shoppers," he says. “While the Kirkcaldie & Stains brand will disappear from Wellington after a long history, there is a real upside in that the capital will continue to have a major department store. Shoppers are likely to benefit from new brands and new products, underpinned by the economies of scale that a major Australian store can bring”.

When the financial report was issued in April, Kirkcaldies’ shares were trading at around $1.70, but within an hour of the takeover announcement, its shares had jumped nearly 28 percent to $2.15.

​ ​

This is a community discussion forum. Comment is free but please respect our rules:

  1. Don’t be abusive or use sweary type words
  2. Don’t break the law: libel, slander and defamatory comments are forbidden
  3. Don’t resort to name-calling, mean-spiritedness, or slagging off
  4. Don’t pretend to be someone else.

If we find you doing these things, your comments will be edited without recourse and you may be asked to go away and reconsider your actions.
We respect the right to free speech and anonymous comments. Don’t abuse the privilege.

 

Military-style semi-automatics ban announced

  • News
  • March 21, 2019
  • The Register team
Military-style semi-automatics ban announced

As of 3pm on March 21, a wide range of semi-automatic weapons have been reclassified under section 74A(c) of the Arms Act as requiring an E endorsement on a firearms license. This means they can no longer be sold to those with A-category gun licenses, and their purchase now requires police approval.

Read more
 
 

Retailers gather for insights at NZ Retail and The Register's breakfast

  • News
  • March 21, 2019
  • The Register
Retailers gather for insights at NZ Retail and The Register's breakfast

NZ Retail and The Register’s sales and marketing breakfast saw dozens of Kiwi retailers come together to network, sharing tips and tricks and absorbing expert advice.

Read more
 
 

Who stole Christmas?

  • News
  • March 21, 2019
  • Kelly Withers
Who stole Christmas?

Results are starting to trickle in from Christmas 2018/2019, and for many retailers, they're a little disappointing. Paydar chief executive and co-founder Kelly Withers explores the data.

Read more
 

Social scoreboard

Zavy and The Register have worked together to create a scoreboard that compares how the top 25 traditional media advertising spenders in New Zealand have performed on social media over the past 30 days, updated in real time.

 
topics
Concept to closet
Business coverage of New Zealand Fashion Week.
Town centres
A positive retail environment over the past 12 ...
Amazon Arrival
Keeping up with all things Amazon as it ...
The Retail Yearbook 2017
As we battle our way through the busiest ...
Hospitality enhancing retail
Some think food and integrated hospitality offerings will ...
The future is bright
We spoke with four retailers in their twenties ...
Spotlight on signage
At first glance, the humble in-store sign might ...
Red Awards 2016
The Red Awards for retail interior design celebrate ...
Auckland Unitary Plan
Auckland is changing. The Unitary Plan will decide ...
How to open a store
Sarah Dunn considers what it would take to ...
All things to all people
Kiwi retailers share their omnichannel strategies.
Rising stars
Retail's top young achievers.
Delivering on your promises
The sale isn't over until your item is ...
Retail in heartland New Zealand
Retailers keep the regions pumping, but how strong ...
Sisterhood
Women in retail help one another. We spoke ...
The changing face of retail
Shifting demographics are creating big changes in New ...
The retail yearbook
With the help of experts in the retail ...
Retail rogues
We put the spotlight on staff training. Jai ...
Here come the giants
Topshop has arrived in Auckland’s CBD, David Jones ...
Window shopping: A spotlight on social media
Sarah Dunn and Elly Strang look at how ...
From retail to e-tail
Ecommerce has become part of the way mainstream ...
Loyalty in the digital age
How are retailers maintaining loyalty? Sarah Dunn, Elly ...
The Innovators | In partnership with Spark Business
Technology is rapidly changing the retail industry as ...
 

Chinese businesspeople raise millions for Christchurch victims

  • News
  • March 21, 2019
  • Radio New Zealand
Chinese businesspeople raise millions for Christchurch victims

A group of visiting Chinese businesspeople have raised $2.35 million for victims of the Christchurch mass shooting.

Read more
 
 
News

The Retail NZ Awards: What does it take to be a winning retailer?

Take this time to shine with the upcoming Retail NZ awards, a chance to show the retail industry what makes your business stand out. No ...

 

Hunting & Fishing New Zealand voluntarily pulls military-style assault weapons from sale

  • News
  • March 20, 2019
  • Sarah Dunn
Hunting & Fishing New Zealand voluntarily pulls military-style assault weapons from sale

In the wake of the attack on Christchurch’s Muslim community on March 15, strong calls for changes to New Zealand’s gun last have been made. Trade Me was the first retailer to act, halting the sale of all semi-automatic weapons on its platform, and it has now been joined by Hunting & Fishing New Zealand.

Read more
 
Next page
Results for
Topics
Jobs
About us.

The Register provides essential industry news and intelligence, updated daily. And the digital newsletter delivers the latest news to your inbox twice a week — for free!

©2009–2015 Tangible Media. All rights reserved.
Use of this site constitutes acceptance of our Privacy policy.

Advertise
The Register

editor@theregister.co.nz

Content marketing/advertising? Email anita.hayhoe@icg.co.nz or call 022 639 3004

View Media Kit

}