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OHKI Set to Upstage Kogan with New Buyout

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Discount electronics retailer OHKI says that its acquisition of Stax Electrical will help secure a competitive advantage over its main rival Kogan.

Cut-price electronics retailer OHKI claims that its latest buyout will see it oust main rival Kogan within a year. OHKI has just signed an agreement to acquire electrical goods retailer Stax, in a move it says will increase the competitiveness of its product offer. Sydney-based Stax is an established electronic goods retailer with an eighteen-year history. The terms of the deal have not yet been disclosed.

OHKI, which was launched in December last year, says that the acquisition will allow it to buy branded electrical product at a margin that is 15% greater than current margins of 25-30%. The new business is tipped to generate revenue of over $7 million and offer an 11,000-strong product range.

Lucas McEntee, Managing Director of OHKI told Startup Smart that the deal has given the business a distinct edge over Kogan.

“Kogan has turned into an importer of products from Hong Kong with a three-day dispatch. With us, you’ll pay a bit more, get next-day delivery and not be at risk of ‘grey’ imported goods. You know what you’re getting,” he said.

McEntee also confirmed that OHKI is establishing satellite warehouses across Australia to satisfy its next-day delivery offer.

Neha Kale

Article by

Neha is a writer and editor for The Media Pad, publisher of Power Retail. She has a background in business, arts and film journalism and an interest in new media and digital strategy. She is looking forward to exploring how retailers are impacted by the online space for Power Retail. Neha is a magazine junkie whose other addictions include coffee, travel and live music. She likes to run but has a long-time allergy to team sports.

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One Comment

    • rocco
    • 11th December

    where are most of your products made not here

    Reply

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