The Bond + Bond store in Crawford St, Dunedin, will close as
part of owner The Warehouse Group's decision to merge the
appliance chain with its larger Noel Leeming network.
The George St Bond + Bond store will be rebranded as a Noel
The merger of the brands was expected to be completed on
April 2, The Warehouse chief executive Mark Powell said
The merger was a result of a thorough strategic review by the
Noel Leeming leadership team following the acquisition of the
group by The Warehouse just before Christmas.
''The decision will ensure a clear focus on Noel Leeming
stores which offer a solid platform for growth as New
Zealand's No 1 electronics retailer.''
Bond + Bond would retain an online presence as part of the
wider group's multichannel business, he said.
In the longer term, the merger would offer greater
opportunity for staff members as part of the consumer
electronics retailer and the wider The Warehouse Group.
The merger would create 75 Noel Leeming stores nationwide.
The Invercargill Bond + Bond store would also close.
Mr Powell made the announcement during the release of the
group's profit announcement for the six months ended January
which saw earnings before interest and tax rise 82.6% to $140
million. The reported profit was up 97% to $106.3 million and
the earnings per share were 34.3c versus 17.5c in the
Craigs Investment Partners broker Chris Timms said the result
should silence critics who wondered whether the new
management team was up to the job of lifting profit and
merging the Noel Leeming group.
''Debt is down and the dividend is up. That is always a good
The interim dividend was 15.5 cents per share, which would
encourage investor interest, he said. Group sales for the
half-year were $1.1 billion, up 18.3% compared to the pcp. Mr
Timms said it was noteworthy the group expected to rely less
on the Red Sheds to generate revenue and profit as the Noel
Leeming Group was restructured.
''I think these guys have done a great job,'' he said.