Betta Living stores to swell to 200 as Retravision collapse, says CEO Graeme Cunningham
Graham Cunningham, the CEO of Betta Home Living, predicts 20 additional stores could be absorbed by the BSR Group, owners of Betta, meaning its total store numbers could swell to 200.
Retravision CEO Paul Holt announced last week the surviving Western division was “no longer able to support a stand-alone national or state business model for the Retravision brand.”
The 180 stores in Retravision Southern will be sold to the Narta buying group, which Betta is a member of, as is Bing Lee, JB HiFi and Clive Anthonys.
40 stores from Retravision Southern already fled to Betta after its collapse earlier this year.
Cunningham also says BSR is working with Narta to find a home for the Retravision stores after last week’s shock decision, but said the move will provide some “certainty” for all parties going forward.
However Retravision stores with turnover of $3m or less may not be accommodated under Narta, but the the troubled group is in discussions with Leading Edge to find a home for these stores.
So how will the closure of Retravision group, announced last week, affect the CE industry?
It depends on how many stores actually close, and at the moment it doesn’t look like many will, says Michael SimotasResearch Analyst, Deutche Bank.
Just because the buying group is winding down, if no actual stores close then the impact on the retail landscape should be minimal, he told Channel News.
More won’t be known about Retravision final plan until early January.
However, although the closure may be good news for surviving players in the electronic retail, the collapse is a telling sign of an already stuggling industry.