GUS in deal with Mitre 10

Press, 23 April 1987, Page 24

GUS in deal with Mitre 10

A Christchurch cooperative company has formed an. alliance with an Auckland-based group in an attempt to create a national hardware chain. GUS Wholesalers Cooperative Society, Ltd, has agreed to jointly develop its Value Rite hardware co-operative retail chain with Mitre 10 (New Zealand), Ltd, which is also a co-operative.

GUS Wholesalers’ group

secretary for finance and membership, Mr Lance Cottam, said yesterday that when Value Rite had expanded into the North Island the hardware cooperative company had found it difficult to crack the Auckland market. Mitre 10 had publicly announced last year that it was seeking a further tier to its hardware business, and the agreement had developed from that

The agreement allows Mitre 10 to administer buying and advertising programmes for the 80 Value Rite stores, as well as for its own 110 shops. In addition, Mitre 10 will be responsible for the North Island membership of Value Rite, and GUS Wholesalers will be responsible for the South Island. Mr Cottam said that Value Rite was now seek--r ing members in Auckland from independent hardware store owners. Mitre 10 was noted for its larger hardware stores, while the emphasis for

Value Rite was on neighbourhood hardware shops. Two wholesale firms, which supplied the Value Rite stores in the North Island, under a franchise agreement, have been affected by the change. L. A. Lambourne, Ltd, of Wellington, has ended its interest in Value Rite, and Mitre Hardware, Ltd, of Tauranga, will close. GUS Wholesalers, which has . a number of business interests, including the Supervalue supermarket chain in the South Island, formed the Value Rite hardware co-operative chain in 1980.