Footwear buyer planning a reboot
New owners of Hannahs and Number One Shoes say the New Zealand footwear market is increasingly competitive, but the brands are strong enough to withstand it.
Australian private equity fund manager Allegro backed current managers Roger Harper and John Elliott to buy the retail brands from Bapcor.
Spokesman Fay Bou said the firm was interested in building the country’s leading footwear group across the two chains, capitalising on the familiarity of the brands to New Zealanders.
The two brands dominated the New Zealand market between the $30-per-pair and $250-per-pair price points, he said.
Although it was a competitive space, both brands were already market leaders with 30 per cent share of their respective target markets.
Between them, the two chains serviced 70 per cent of the New Zealand population.
Bou said the family and value ends of the market were less fickle than the high- fashion sectors.
The prospect of digital retailers such as Amazon entering the New Zealand and Australian markets in earnest was a concern, he said.
Although the company would work on its online offering, the wide store network of Hannahs and Number One was a key reason that Allegro had confidence in the deal.
There was a shop in every town and city in New Zealand, he said. There was an opportunity ‘‘to leverage off that footprint to create an omnichannel player in New Zealand.’’
Shoppers should notice a change under the new ownership. The brands had previously been part of a large corporation that had not been able to give them the attention they needed.
The team would work to bring worldleading self-service practices to Number One.
‘‘We want to make the discovery process as easy as possible ... to create an opportunity for consumers to get excited about discovering new shoes and styles.’’
Hannahs would focus on attracting more big-name brands.