Smith’s may merge to enter N.I. market

Press, 17 January 1986, Page 5

Smith’s may merge to enter N.I. market

Smiths City Market Group, Ltd, the Christ-church-based department store owner, is discussing a merger with an Auckland retail company, which, if successful, will provide it entry into the North Island market. The Christchurch company, which has 38 shops in the South Island, including those owned by Noel Leeming, the 80 per cent-owned appliance store subsidiary, yesterday announced it was holding discussions with Irvin and Stern Holdings Ltd, the Auckland-based company that has 12 retail stores in the North Island. The group general mana-

ger of Smiths, Mr Peter Leeming, said last evening that “the dominant objective of the merger is to establish the largest furniture, floor-covering, and appliance retail chain in New Zealand with sales in excess of $l5O million from over 50 stores with 1000 employees.” Smiths City Market had been looking for a retail base in the North Island for some time, and had been studying several proposals before the announcement. Irvin and Stern has 12 retail stores — five in Auckland, and one each in Whangarei, Hamilton, New Plymouth, Palmerston North, Tauranga, Rotorua, and

Taupo — dealing in furniture, floor coverings, and appliances. If the merger succeeds, the directors intended to expand the retail coverage in the North Island to include Wellington and the East Coast, he said.

The joint statement by the two boards of directors did not indicate what the merger deal was, but they recommended that shareholders not sell their shares yet.

Smiths City Market traded at a steady $1.05 on the New Zealand Stock Exchange yesterday, and Irvin and Stern was also steady, at $1.02.