Lakeland has cooked up a deal to open concessions Down Under with The Good Guys. Here’s a closer look at the Australian retailer.
- The Good Guys is an Australian electricals retailer founded by Ian Muir in 1952.
- It is one of Australia’s top-10 private companies, with 101 stores nationally and annual sales of around $2bn.
- The retailer’s first store – known at the time as Ian Muir’s Radio & Electrical Centre – was in Melbourne, where it now has its headquarters.
- True to its name, The Good Guys is an ethically driven retailer. It encourages customers to consider the environmental impact of their purchases and sells energy- and water-efficient products. It has also donated more than $8m to local charities and community groups since 2006 through its local giving programme.
- Its “Pay Less, Pay Cash” proposition and a popular TV advert in 1998 drove the retailer’s national expansion. It has now moved away from that slogan, however, replacing it with “Pay Less, Pay Less”.
- Chief executive Michael Ford has led The Good Guys since 2004. He previously held roles at Australian retailers Country Road, Esprit and Jag Clothing.
- In January 2010, the retailer made a brief and unsuccessful venture into the New Zealand market. It opened five stores but withdrew its operations in 2014 citing poor returns.
- Its shops are generally large warehouse-type stores and rely on big sales volumes.
- In 2010 competitor JB Hi-Fi was reportedly interested in acquiring the chain for $750m. New Homebase owner Wesfarmers was also believed to have expressed interest in the electricals retailer.
- While analysts have valued The Good Guys at close to $600m, it is believed the Muir family will not sell for less than $1bn.
- The Good Guys, which has more than 4,000 employees, is currently exploring an initial public offer and listing on the Australian Securities Exchange.
- The Good Guys will manage Lakeland’s venture into the Australian market, starting with the introduction of 12 store-in-stores in October and followed by a national roll-out over the next two years.
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