South Australia's Radio Rentals Group has appointed new CEO Brendan Killen to oversee the amalgamation of Radio Rentals and Walker Stores throughout the state, a move that will give the companies a combined buying power of more than $100 million.
Over the past 18 months, Walker Store investors have progressively bought out 12 Radio Rental outlets across metropolitan and regional SA, adding them to its own collection of eight Radio Electrix and HomeCo outlets. Walker also paid several million dollars to acquire Radio Rentals' significant rental asset.
With common directors across the boards of Walker and Radio Rentals, the decision was made to merge the business operations at the front end while keeping the back end as two separate legal entities.
According to David Jacobs, general manager of marketing and distribution for Radio Rentals, "the directors are taking a pragmatic view on a store-by-store basis as to whether they will assume the Radio Rentals brand name or the HomeCo label".
"We wanted to limit the retail brands to two and based the decision on which had the strongest existing presence in the area. All but three of the stores are already carrying their new identities and the response has been very positive.
The Radio Rentals brand name is an icon in South Australia and clearly the change has been well received but even the HomeCo brand, which is relatively new, is going strong."
The successful amalgamation makes Walker Store/Radio Rentals the largest electrical and furniture retailing group in South Australia.www.radiorentals.com.au