Hallenstein eyeing ‘store reinvention’

The company’s strategy of store refurbishments and the restructuring of its Australian operations are paying off.

Hallenstein Glasson Holdings recently reported a 36 per cent rise in online summertime trading.

But the threat to its physical stores is a slow burn, with online accounting for only about 8 per cent of overall sales, chairman Warren Bell said.

The company, which is listed on the New Zealand stock exchange, is well represented across the country.

Its most recently opened New Zealand shops were developed by major shareholder and director Tim Glasson in central Christchurch, and opened in November 2016. Bell said these additions were trading to expectation.

He welcomed a speed-up of the CBD rebuild in Christchurch, where roadworks have reached a new peak ahead of about 6000 workers due to return in stages from next month until the completion of the last main commercial buildings in 2019.

Elsewhere, Hallenstein Glasson has been refurbishing its stores, including three in Auckland last year, and focusing on its 30 outlets in Australia, where it has closed some shops and opened others in different areas.

The company’s store refurbishments and the restructuring of its Australian operations are paying off as it reports higher profits.

In Australia it closed two unprofitable stores, refurbished three, and opened two new ones. Glassons now has stores in Victoria, New South Wales and Queensland, while Hallenstein Brothers opened two in Queensland. This helped drive an increase in sales of 23.3 per cent on the prior corresponding period, and saw the Australian chain return to profit.

With total group sales ahead by 10 per cent in the six months ending February 2017, the company is in good heart for the arrival later this month of new chief executive Mark Goddard.

Profit after tax was $9.1 million, an increase of 34 per cent on the prior corresponding period.

Gross margin on sales was 58 per cent compared with 56.8 per cent in the previous period.

The strategy to have dominant stores in key locations is now complete in Auckland, Wellington, Dunedin and Christchurch. But Bell said it was critical to keep up with ‘‘store reinvention’’.