Latest / Best of Business / Rod Duke: Briscoe Group managing director on the company's bid to introduce metro stores

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Rod Duke: Briscoe Group managing director on the company's bid to introduce metro stores · Best of Business

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  Speaker 1: You're listening to a podcast from News Talks be follow
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  Speaker 2: Now, when I say Brisco's, you imagine a big store,
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  Speaker 2: right with rows and rows of towels and pots and pillows. Well,
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  Speaker 2: the company is now adding fifteen mini metro stores to
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  Speaker 2: its lineup to boost sales. Brisco's first quarter sales were
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  Speaker 2: down two point six percent, but its business is largely
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  Speaker 2: held up when much of the retail sector has really
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  Speaker 2: been struggling of late. Brisco Matt Group Managing Director Rod
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  Speaker 2: Duke is with us.
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  Speaker 3: Now, Hey, Rod, Hi, how are you doing very well?
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  Speaker 2: Thank? You know what's the thinking behind these mini stores?
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  Speaker 3: Well, it's part of our strategic look forward. So what
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  Speaker 3: brought me do to increase outreach through New Zealand given
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  Speaker 3: that the only thing we've got up left is relatively
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  Speaker 3: smaller catchments, and so we're on a path to develop
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  Speaker 3: a smaller unit which will address these the smaller catchments.
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  Speaker 2: Yeah, like, where are you thinking, Well.
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  Speaker 3: There's probably about a dozen locations. I'll give you a
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  Speaker 3: couple of examples. Tower. I've got one store in Tower.
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  Speaker 3: It's a pretty big catchment, but I've got one store downtown,
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  Speaker 3: which addresses some of the over the bridge catchment, but
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  Speaker 3: there's a much larger catchment developing further out towards Bethlehem.
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  Speaker 3: We've got one store, could we put another two minis
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  Speaker 3: in there? Yeah? I think we probably could. And that's
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  Speaker 3: the sort of thing we're looking at.
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  Speaker 2: What about city centers, for example Auckland.
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  Speaker 3: Yeah, we've got a Yeah, we've got a downtown rebel
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  Speaker 3: at present, but.
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  Speaker 2: That's not a Briscoes and Briscoes is my jam.
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  Speaker 3: Yeah, I know, but look, we are looking. But at present,
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  Speaker 3: they landlords have got stars of their eyes at the moment.
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  Speaker 3: So look we're looking.
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  Speaker 2: We're like, God, is it that the landlords are just
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  Speaker 2: charging too much?
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  Speaker 3: Yeah? Yeah, it's just some of the some of the
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  Speaker 3: sites we've looked at, it's just unprofitable. I just can't
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  Speaker 3: make any money.
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  Speaker 2: Is this is this Auckland Central? Are we talking around?
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  Speaker 3: You know?
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  Speaker 2: The Queen Street hype areas those kinds of places.
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  Speaker 3: Not necessarily Queen Street, but certainly in the in the
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  Speaker 3: adjacent streets and buildings we're looking at. We'd like one
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  Speaker 3: in downtown Auckland because look, there's a lot of apartments
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  Speaker 3: down there's a lot of people enjoying city living at present.
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  Speaker 2: What about Ponsonby Road asking for a friend.
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  Speaker 3: Yeah, I live nearby. That'll be handy for me as well.
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  Speaker 2: We could meet up there.
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  Speaker 3: Yeah, look we could, you have to. There's a lot
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  Speaker 3: of smaller units there and they're individually held, and so
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  Speaker 3: it's hard to get you know, a thousand square meters
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  Speaker 3: on the ground adjacent to one another. But look, we're
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  Speaker 3: downtown in Wellington, we're downtown in christ Church. So we've
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  Speaker 3: got downtowns in some of the big centers organized, but
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  Speaker 3: but not all. And look, Hamilton's another one. You know,
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  Speaker 3: we're only on the north side. There's still lots of
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  Speaker 3: housing on the on the east, west and southern side
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  Speaker 3: of Hamilton, but it's just a bit tough to get
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  Speaker 3: the rights sized and right appropriate locations.
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  Speaker 2: Yeah, I bet. Now this this distribution sense that you've
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  Speaker 2: got lined up, it sounds like a game changer. How
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  Speaker 2: big is this thing going to be?
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  Speaker 3: It's going to be about five or six times bigger
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  Speaker 3: than we've got. It's going to be, as you say,
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  Speaker 3: a game changer for us because we've lived in relatively
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  Speaker 3: modest sized DC center in just Auckland and so yeah,
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  Speaker 3: we've got the the the problems of when stock comes in,
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  Speaker 3: it's just got to go somewhere quick. So it just
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  Speaker 3: goes into the stores, and quite frank after it's got
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  Speaker 3: too much stock in.
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  Speaker 2: The stores and so and presumably if it's landing in
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  Speaker 2: the stores, then it's not necessarily in the right store.
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  Speaker 2: And some stores are selling out faster than they need
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  Speaker 2: to transfer. It's just like you'll be double handling things
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  Speaker 2: the whole time.
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  Speaker 3: Yeah, you're right. Look, my my interest store transfer is
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  Speaker 3: just to bounce. The stock up is about nine hundred
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  Speaker 3: thousand dollars a year. Yeah, so that was thatll just
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  Speaker 3: fall off completely. Yes, that's I don't worry.
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  Speaker 2: Yeah, the building right, Listen on the budget, are you
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  Speaker 2: is anything that you're looking looking to in the budget?
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  Speaker 2: Anything you want out of it?
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  Speaker 3: Look, I just like a couple of nice, big items.
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  Speaker 3: So I can be convinced that the company is actually
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  Speaker 3: doing something and looking to achieve something. I think that
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  Speaker 3: I think right now they're working on a lot of
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  Speaker 3: fronts and trying to complete a lot of stuff at
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  Speaker 3: one time. So I just look for some guidance from
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  Speaker 3: them that they're they're onto something like what, well, well,
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  Speaker 3: let me get some exclusions, you know, kepal gains tax,
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  Speaker 3: wealth tax, you know, I think that's that's probably not
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  Speaker 3: on their cards anyway. But I'd like to see some
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  Speaker 3: infrastructure spending. You know. I think I notice Australia just
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  Speaker 3: recently have gone into toll roads and that sort of thing.
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  Speaker 3: Gonment can't afford it, and look, someone else care and
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  Speaker 3: there'll be a toll on it for a period.
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  Speaker 2: Did I detect a hint of frustration at the government
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  Speaker 2: and your voice before?
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  Speaker 3: Ah? Look, Look, I think I think we all appreciate
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  Speaker 3: that the that the situation they walked into was pretty
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  Speaker 3: ugly and they needed to do something and they needed
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  Speaker 3: to sit down and think about it and do something sensible.
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  Speaker 3: But it looked like most of us it's just about time.
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  Speaker 3: Elections rolling up not that far away. It'd be nice
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  Speaker 3: to see, nice to see the government. You're kicking a
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  Speaker 3: few goals and you know that's that's I think all
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  Speaker 3: of us will.
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  Speaker 2: Say some significant stuff. Rod, it's always wonderful to talk
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  Speaker 2: to you. Thank you so much. Go well. I'm looking
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  Speaker 2: forward to one of your briscos popping up nearby. That's
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  Speaker 2: Rod Duke, Managing director of the Brisco.
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