By John Van Klaveren
GEELONG’S long-standing Retravision store has joined a new buying group after an administration scare last week.
Owner Trevor Elsworthy said the store would continue to operate as normal through Retravision Western after the company’s southern group went into voluntary administration.
“Our supply chain will go through Western Australia and Retravision Northern will continue to supply northern New South Wales and Queensland,” Mr Elsworthy said.
“This has been a couple of years in the process but will mean a greater level of competition. We’ve been able to negotiate better terms, so we should be more competitive than ever.”
Mr Elsworthy said the failure of Retravision Southern was “unfortunate”.
KordaMentha has takeN over as its voluntary administrator.
Retravision Southern acted as the buying and marketing licensor for 104 retailers including Elsworthy’s.
Administrator Bryan Webster said an industry-wide decrease in consumer discretionary spending had impacted Retravision Southern’s viability.
Mr Webster said customers should liaise with retail stores about orders and lay-bys but existing gift cards and warranties would be honoured.
Mr Elsworthy said the new buying group streamlined administrative functIons to present a “massive” cost saving.
“Our group buying power has increased and we’ve already seen our rebates from suppliers improve.”
Mr Elsworthy said Retravision Western would adjust its business hours to allow for the difference in time zone.
Retravision was also planning to improve its online sales offer, he said.
“People still like to feel and touch the products and online still represents a small percentage of our turnover.”
Elsworthy’s general manager Aaron Sarah said the store was diversifying into commercial appliances and domestic and commercial exercise equipment to strengthen its position and widen its appeal.
The failure of Retravision Southern follows profit downgrades for JB Hi-Fi and Harvey Norman and the sale or closure of the Dick Smith chain.
