Noel Leeming furniture move

By Duncan Bridgeman

Friday 26th July 2002

Pacific Retail Group is less than two months away from opening two pilot furniture stores in Auckland.

Eric Watson-controlled PRG is opening the stores at Botany Downs and Manukau as expansions to the group's Noel Leeming home appliance store brand.

General manager of retail John Milford said both stores were still under construction but the first pilot would be ready to open by the end of September. The second would follow in October, he said.

Mr Milford said final range reviews had been carried out and most of the initial merchandise orders had been filled.

Almost all the furniture was made in New Zealand, with Sleepyhead Beds a major supplier.

PGR would continue to use the Noel Leeming brand - encompassing appliances, computers and furniture, he said.

Noel Leeming began as Noel Leeming Television in 1973 in Christchurch. This grew into a chain of nine stores and was acquired by Smiths City in 1983.

When Smiths City went into receivership in late 1991 the 43-store Noel Leeming chain, which had maintained its autonomy within the group, was not touched.

Noel Leeming was then sold by the receivers to the chain's general manager and Auckland electronic retailers Roger and Diane Bhatnagar.

The company was then taken over by Skellerup group in 1995 before it became part of PRG in 1996 after merging with Bond & Bond.

Noel Leeming now had 50 stores across the country.

Mr Milford said the new furniture stores would have a low-key opening but he was confident the group could generate cross-selling benefits from Noel Leeming's existing client base.

He said furniture suppliers had supported the new initiative and the group had ensued a continuation of supply.

The move to furniture is PRG's second launch of a new format within a year.

Last October, PRG opened its Big Byte stores, which sell computers, technology and communication equipment.

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