Leading UK kitchenware retailer Lakeland is partnering with The Good Guys to open in-store concessions, as well as launching an e-commerce site.
Leading UK kitchenware retailer Lakeland has set its sights on the Australian market, announcing a partnership with The Good Guys. The deal will see Lakeland set up 12 concession-style destinations in The Good Guys stores over the next few months.
The UK retailer plans to establish more than 100 in-store shops over the next two years, as well as standalone Lakeland stores as part of a licence agreement with The Good Guys.
Lakeland is also planning to launch an Australian e-commerce site in early 2017.
Lakeland operates around 70 stores in the UK and is a leading retailer of a broad range of kitchenware and homeware. The Lakeland in-store concessions will stock about 750 kitchenware products.
Tony Preedy, director of marketing and international development for Lakeland, told Fairfax Media that the company has been eyeing the Australian market for a while now.
“It’s taken us time to research the market and select a partner we felt was a good fit, both commercially and culturally. We found The Good Guys, got to know them and decided they were the partner for us,” Preedy said.
“The Good Guys is the market leader in kitchen electricals, so it seems like a very good marriage – their strength in electricals could be married to Lakeland’s strength in non-electrical kitchenware and housewares,” he said.
The partnership will allow Lakeland to quickly scale operations in Australia, as well as leverage The Good Guys’ extensive store network, logistics operations and local knowledge.
For The Good Guys, the deal will help it to expand into other product categories and capitalise on the name recognition of a major international brand.
“The Lakeland partnership forms part of The Good Guys’ growth strategy and adds a whole new dimension to our ‘Everything for the Cook’ offering,” said The Good Guys chief executive Michael Ford.
“As the market leader in Australia for large and small kitchen appliances, kitchenware is a logical category extension for us.”
The partnership comes at the tail end of The Good Guys’ Australian investor road show, and as the company prepares to travel to the UK, the US and Asia to spruik its potential IPO.
While the company is actively pursuing a public listing, a number of trade buyers, including JB Hi-Fi and Steinhoff International, have expressed interest in acquiring the company.
The licence agreement will proceed regardless of whether The Good Guys pursues an IPO or a trade sale.