The Disc Shop rules out further expansion
- 17 January, 2006 07:24
The Disc Shop has opened its first NSW store in Coffs Harbour, but has ruled out plans to further expand its brand across the state.
Marketing manager, Ross Edwards, said the retailer's efforts to strengthen sales did not include more store locations. The discount computer warehouse chain, which is based in Brisbane, currently operates 11 stores, which had all previously been situated in regional areas of Queensland.
The Coffs Harbour store was originally slated for launch early last year. However, the company opted to defer its move into NSW last January, citing the need to review its internal operations structure.
Edwards said Coffs Harbour was officially opened in October.
While retail sales over Christmas had been on par with industry trends, Edwards said it was still feeling the pinch of tighter margins and was endeavouring to improve the performance of its existing stores. As part of this initiative, The Disc Shop was looking to relocate its Maroochydore store to obtain a better shopfront.
Its premises in Springwood, Queensland, had also been converted to a Brizcom store due to its different clientele, he said.
"Springwood has always been its own company, and now it is trading under that name," he said. "We felt that both companies are moving in very different directions and rebranding Springwood will allow us to lift the profile of The Disc Shop."
More specifically, consumers in Springwood were looking for cut-throat pricing, which the rest of The Disc Shop chain was unable to provide, Edwards said. There was also immense competition in the suburb.
"With our other stores, people come in for service and pay extra to get that," he said. "They get extra features like air conditioning, a cleaner and better layout, and better service. Springwood very much has a warehouse feel. We don't want to sacrifice the service for the pricing."
Edwards said there were no plans to swap any of its other existing locations across to the Brizcom brand.