By James Wells
SYDNEY: 2nds World, a current member of the Betta Stores Limited (BSL) buying group, will join the Narta group in September.
2nds World’s contact details have been uploaded to the Narta website and suppliers are being contacted today ahead of a meeting of the buying group’s directors tomorrow morning at its head office in Pyrmont.
Current.com.au understands that the membership will be effective from 1 September 2006, which is the day after delegates fly out from the Narta conference which will be held in Maui next month.
2nds World operates two locations in the Sydney metropolitan area – its 2,000 square metre warehouse at 321 Parramatta Road in Auburn and its 1,500 square metre site at 237 Military Road, Cremorne, which also functions as the group’s support office.
With this acquisition, Narta will have another store in the competitive Auburn retailing strip, following the new store opening by Clive Peeters last week.
2nds World claims it is Sydney’s original factory second outlet and has been operating for 35 years.
2nds World offers gas and electrical factory seconds, carton damaged, factory run out models directly from the manufacturers which also have a manufacturer’s warranty.
The retailer also markets itself as a discounter of new appliances.
2nds World managing director, Peter Hammerman, told Current.com.au this afternoon that the reasons for leaving BSL were not acrimonious.
“We have been an unidentified member of Betta and the focus quite rightly has been on promoting the Betta Electrical and Chandlers brands. Because we were unidentified, we did not benefit from the advertising catalogues and services to Chandlers and Betta stores.
“I was very happy at Betta and [my decision] has got nothing to do with anything that is happening in their backyard at the moment. We have been treated very well by all of the people at Betta Stores.
“The move to Narta is predominantly a commercial reason. It will be more profitable for our business to move across as Narta caters for the different types of businesses that exist in the appliance industry with retailers like David Jones, JB Hi-Fi and Bing Lee. Because Narta is a smaller, tighter group that is specifically designed for buying, that is where we will benefit – it will be good to mix with the big boys.”
Hammerman will celebrate the 12th anniversary of owning the business on Wednesday, which he purchased from lawyer Richard Lewis when the Cremorne store was just 200 square metres on 2 August, 1994.
Hammerman estimates that 2nds World joined the Betta Electrical group in the late 1980s.
Hammerman has confirmed that he would like to grow his business to additional sites.
“We do have plans for expansion, but this will be achieved using profit from the business and will occur one step at a time.”
Hammerman said he will remain a shareholder of Betta Stores, which is listed on the Newcastle Stock Exchange.
According to Betta Stores Limited’s share register, Hammerman’s company Luxtown Pty Ltd, held 1,127,552 shares in the publicly listed electrical retailer on 30 December 2005.
This ranked Hammerman as BSL’s third highest shareholder behind the largest shareholder – BSL retailers Ian Murden and Everard Johnson and Bell IXL Investments – the company which has sought to purchase 20 per cent of the Queensland based electrical buying group.
Hammerman estimates he is still the company’s third largest shareholder.