Smiths City (Southern) Limited is the Groups trading arm. This company operates through Smiths City, with centralised back office support functions.
The over-riding retail strategy centres upon the retailing of branded product (as opposed to discount unbranded product) supported by a full in-store and delivery service (as opposed to a check out cash and carry style operation).
SMITHS CITY was founded in 1918 and is a long established, successful and profitable retail trading operation with considerable brand recognition. It operates 30 Smiths City stores and 4 Clearance Centre stores. All stores are in high profile locations in major towns and cities throughout the country.
Smiths City retails a full range of home appliances, home furnishings, home heating products, carpets and sporting goods throughout all 30 locations. The Clearance Centres sell a full range of affordable new product together with used and second hand products.
A clear focus on buying and marketing has resulted in Smiths City having a significant market share in product areas identified as strategically important in particular, the provision of heating solutions, consumer electronic products, kitchen appliances, indoor and outdoor furniture, bedding, lawnmowers, cycles and camping equipment. Its primary target market is the middle to lower income household.
The trading division is supported by centrally managed logistics, distribution, computer systems, management information, accounting and treasury functions. Such a structure enables the company to best manage efficiencies and allocate resources to those areas where the return will be greatest.
SMITHCORP FINANCE LIMITED is the Groups finance company.
The major functions of this company are divided into two parts:
As at 30 April 2009 the gross value of the finance portfolio was approximately $91million. There were approximately 76,000 active accounts.
The finance company has a three year evergreen funding facility in place with Fisher & Paykel Finance Limited. As at 30 April 2009 the amount financed was approximately $83.1million.
Day to day control of the Companys consumer finance facilities is considered a major strength for the Company.
Smithcorp Finance Limited also owns a small company called SCG Finance.