The Bond + Bond store in Crawford St, Dunedin, will close as part of owner The Warehouse Group's decision to merge the appliance chain with its larger Noel Leeming network.
The George St Bond + Bond store will be rebranded as a Noel Leeming store.
The merger of the brands was expected to be completed on April 2, The Warehouse chief executive Mark Powell said yesterday.
The merger was a result of a thorough strategic review by the Noel Leeming leadership team following the acquisition of the group by The Warehouse just before Christmas.
''The decision will ensure a clear focus on Noel Leeming stores which offer a solid platform for growth as New Zealand's No 1 electronics retailer.''
Bond + Bond would retain an online presence as part of the wider group's multichannel business, he said.
In the longer term, the merger would offer greater opportunity for staff members as part of the consumer electronics retailer and the wider The Warehouse Group.
The merger would create 75 Noel Leeming stores nationwide.
The Invercargill Bond + Bond store would also close.
Mr Powell made the announcement during the release of the group's profit announcement for the six months ended January which saw earnings before interest and tax rise 82.6% to $140 million. The reported profit was up 97% to $106.3 million and the earnings per share were 34.3c versus 17.5c in the previous period.
Craigs Investment Partners broker Chris Timms said the result should silence critics who wondered whether the new management team was up to the job of lifting profit and merging the Noel Leeming group.
''Debt is down and the dividend is up. That is always a good sign.''
The interim dividend was 15.5 cents per share, which would encourage investor interest, he said. Group sales for the half-year were $1.1 billion, up 18.3% compared to the pcp. Mr Timms said it was noteworthy the group expected to rely less on the Red Sheds to generate revenue and profit as the Noel Leeming Group was restructured.
''I think these guys have done a great job,'' he said.
