Bulk-buy syndicate to set up shop
- 31 May, 2007 22:00
The Australian buying consortium National Associated Retail Traders of Australia (Narta), is expected to follow in the footsteps of one of its largest customers JB Hi-Fi and set up shop in New Zealand.
Managing director Kay Spencer says the buying group currently holds 28 members across Australia and is currently talking to organisations here about setting up in New Zealand.
“It will be a similar process to the operations we have in Australia but the two markets can be quite different so we will have to adapt to that.”
Spencer says Narta acts as a “behind the scenes partner” to its customers and focuses on companies that are publicly listed or solid, independent companies.
“Collectively, we can hold the same power as some of the powerhouses. Our partners achieve the buying power and suppliers are given the economy [that is] necessary to succeed. We get very strong, independent retailers; the market value is in their brand name, not in ours.”
The company looks at the mid to large retail market, with listed companies and organisations with a typical turnover of more than A$150 million.
Spencer says the buying group would establish a physical presence in New Zealand.
“At this stage we are still working on the scale. Other than applying our philosophy here we will have to adapt to the market. New Zealand has its own idiosyncrasies, we need to define that and build around it. There will be a physical presence there; it can not be run from Australia.”
Spencer gave a timeline of around three to four months before the organisation will be in New Zealand.
Narta, established in 1965, is the largest independent electrical buying group in Australia and holds a market share of about 22 percent. The total Australian market is currently valued at around A$12.2 billion.