Retailer Clive Peeters is out performing the market. They are also is set to crank up their catalogue marketing, roll out a major new online initiative and expand their service offering claims their CEO.
According to Company CEO Greg Smith the consumer electronics and appliance retailer is currently outperforming the market with growth in October of 17% vs. an industry average of 7% he also said that during the past two weeks the Company has witnessed “excellent traffic through their stores and an exceptional week last week”.
“We have deliberately expanded the amount of catalogues we are doing. Where we normally do 1 or 2 a year we are going to do 3 between now, Xmas and into the New Year”.
Last week the retailer announced that they had called in KPG to conduct a strategic review of their operations however Smith refused to get drawn on whether this was a move to rationalise the sale of shares in the Company in an effort to raise additional capital.
He said that recent reports on Current.com.au that the Company has identified sites for up to 100 stores nationally over the next 10 years were wrong.
“What we have is an aspiration to open 100 stores. This will depend in part on the future direction of the Company and the work being done by KPMG. Currently we are working closely with vendors to grow our business. Recent research indicates that 94% of people who shop in a Clive Peeters store will come back and shop again. What we have to do is improve the traffic coming through the door as we have a superior service offer than our competitors and we give a 14 day price guarantee”.
He added” The average sale in a Clive Peeters store is $800 compared to $80 in JB Hi Fi and going forward we believe that we can grow our customer base because we have a superior service and support offering, this is key to our success. We have been watching the Best Buy model for several years and their service operation is a key part of their model”.
“We have spent significantly in merchandising our stores and when a customer walks into a Clive Peeters store they will get exceptional service and we will not be beaten on price as we will not only match a competitor’s price but give a 14 day guarantee” said Smith.
When it was put to Smith that his stores were more like a David Jones department store than a Harvey Norman or JB Hi Fi discount store he said “We have invested in giving the consumer an excellent in store experience. However we are getting more aggressive with our marketing going forward. We are expanding our catalogue offerings and you will see more price promotions in our advertising. The market right now is tough but over the past few weeks we have hit some good trading numbers ahead of what we expected. Tax breaks are tipped, interest rates are coming down and Ist home rebates are now flowing into the market. We are confident that consumers will spend and while it will not be a bumper Xmas we believe it will be a solid Xmas”.