26 Jul 2011

Retail chain to cut stores in NZ, Australia

10:31 am on 26 July 2011

Australian and New Zealand retail chain Premier Retail Group plans to close up to 50 loss-making stores and cut staff.

The group owns brands including Just Jeans, Jay Jays, Portmans, Jacqui E, Peter Alexander, Dotti and Smiggle.

Premier Retail Group had more than 1,000 stores at the end of January, 167 of which were in New Zealand.

As part of a plan to improve profits, it intends to close up to 50 unprofitable stores across both countries as their leases expire, but it doesn't say which shops.

The firm is, however, planning a net expansion of 50 stores - with up to 100 new stores opened over the next three years, including up to 20 in Singapore.

Premier says it will be focusing expansion on the high profit margin Peter Alexander brand, and its Smiggle brand.

The group expects sales in New Zealand to fall 1.5% in the second half of the year, although a stronger rise in Australia should boost total sales by a net 2.4%.