3 Jul 2013

Warehouse purchase of online shopping site seen as strategic move

7:13 am on 3 July 2013

An analyst says the purchase of an online shopping site by The Warehouse is a good strategic move.

The Warehouse has bought a 50% stake in Shop HQ, an online retail business run by GrabOne founder Shane Bradley.

The retailer won't disclose how much it paid, although it wasn't big enough to warrant a stock exchange notice.

The Warehouse's chief executive Mark Powell said the company made the investment for the experience and expertise of Shop HQ's founder and team.

This is a fast-moving area where there's lots of opinions, lots of views, and sorting the wheat from the chaff.

He said the knowledge and intellectual property that comes with the acquisition will help the company move faster than it could have done on its own.

Craigs Investment Partners Head of private wealth research Mark Lister said it is a sensible move.

Although he doubts it will have an impact on short term earnings or the share price, he said it shows that the company see opportunities in online retailing and is willing to buy the expertise it needs to realise those opportunities.