Mitre 10 Format and Expansion Strategy Bringing Results

15 December, 2011

Mitre 10 Format and Expansion Strategy Bringing Results

An ongoing shift to large format Mega stores and an increased national footprint are bringing results for Mitre 10 as the hardware retailer has surpassed its rivals to become the No. 1 revenue generator in the sector.

Reporting to its recent Annual Members Meeting, Mitre 10 chairman Martin Dippie said the $849 million revenue figure for the June 30, 2011 financial year meant the nationwide hardware retailer has now surpassed its nearest rival. Group revenue was up by $17.1 million on the previous year.

“The group revenue figure continues an upward trend in revenue which reflects both the growth of our national chain to more than 100 Mitre 10 stores and about 60 Hammer Hardware stores and the success of the Mega Store format,” said Mr Dippie.

“Since we introduced the then innovative Mega format in 2004 our group revenue has almost doubled and we are tracking towards breaking through the $1 billion revenue target in the foreseeable future.

“We are now the largest hardware retailer in New Zealand by revenue and by store numbers, the largest gardening centre chain in New Zealand and, have a growing penetration in the Trade market. With further expansion included in our programme we are tracking well towards a strong future.”

Mr Dippie said the group’s after tax profit of $1.33 million was also an improvement of $0.62 million on last year. As a co-operative the bulk of any profits are returned to Mitre 10’s members.

Mitre 10 CEO John Hartmann said the expansion of the Mega format had gained significant momentum in the past two years and that momentum was set to continue for at least another year.

“When I joined the company a little under two years ago there were 22 Mega stores and now there are 31 plus two major upgrades in Hastings and Greymouth. The Hastings store was our first mega in 2004, outgrew its original floor plan within five years, and has just been doubled in size. That’s a huge customer endorsement of the format,” said Mr Hartmann.

“Our expansion programme has had a recent focus on provincial and rural centres but next year we have six more Mega stores on the drawing board including stores in Auckland, Wellington and Christchurch.

“Revenue is growing both through expansion and through store on store comparisons of sales and our service to both trade and retail customers continues to improve.

“In the near future we’ll be introducing new ranges of highly regarded international brands specifically designed to meet the rigours and demands of our trade customers while the resources we’ve added to our trade sector were a significant contributor to Mitre 10 being selected as one of the two trade suppliers for AMI’s Christchurch earthquake rebuild efforts.

“We are focused on meeting the needs our customers and they seem very pleased with the expansion. There really isn’t another company in New Zealand right now that has made this level of investment during these difficult economic times – 11 new stores in 14 months,”said Mr Hartmann

“All the indicators are the Mitre 10 will remain firmly in the DNA of New Zealand’s traditional DIY culture.”

Mitre 10 Highlights

Recent Mitre 10 Group Sales
2009: $845.49m
2010: $845.05m
2011: $849.26m

ENDS

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