NZ Largest Natural Health Retail Chain Expanding

Press Release

NZ Largest Natural Health Retail Chain Expanding!

At a time when global businesses are implementing initiatives to soften the effects of the recession, New Zealand owned retailer Health 2000 are conducting business full steam ahead with major restructuring to position the company for future growth.

The business was formed 15 years ago and has grown from 5 retail shops to a national presence of 70 shops throughout New Zealand. The newest shop was opened last year in Morrinsville and a further two shops are in the pipeline for 2009.

Health 2000 had a 1/3rd ownership in 18 corporate “flagship” stores and has purchased the remaining shareholding, effective 1 April, to become the 100% owner of those stores. The company has also conducted a share buyback, purchasing 50% of the capital from one of the company’s original investors, so it is now owned entirely by its retailers. Both transactions were considerable investments, but General Manager Alan Morpeth explains, “These transactions have given us a common shareholding base better positioning us for future growth. Previously the shareholder structure of both companies prohibited growth due to different objectives and expectations held by the different shareholder parties. Our shareholding structure is now entirely retail focused allowing us to concentrate on what we do best, which is to deliver exceptional customer service”.

Being part of a growth industry made the investments seem even more worthwhile. Health 2000 has been a pioneer in providing customers with natural supplements for helping with ailments and for those whose focus is on prevention rather than cure. The 70 shops are owned by 34 retailers with many being multi site owners. Morpeth states that while such a large group has the pros and cons of diversity, the common theme amongst all retailers is the passion of natural health and customer welfare. “During my time in Health 2000, the focus of the Board’s and my attention has been on developing a team culture, recognising brand value, increasing margins and establishing information systems. While we always try and improve we have not had to give a lot of focus to customer service, because it is something our retailers are very focused on. The new structure of the business is exciting, because opportunities discussed at strategy meetings now become a genuine possibility, instead of pipe dreams.”

The Board of Directors consists of three shop owners; Bob McDonald from Ashburton, Gary Simmons from Gisborne and Glenn Seal from Rangiora. McDonald is the Company Chairman and has been part of Health 2000 for the last 10 years. He is equally excited about the future of Health 2000, believing it is better positioned than it has ever been. “During the next year or so, we will start the process of selling some of the shops we have just acquired. There are a number of strategic reasons for doing this, but one of the advantages will be to bring new blood into the group. Our first priority will be to sell some shops to our managers and our existing retailers. We will also consider new business owners – but they must share our values and have the same passion for natural health and customer welfare“. Morpeth adds “They must enjoy what they are doing and be as excited as we are about the future of the business”.

Everyone at Health 2000 is very positive about the future of their business – maybe it’s because they practice what they preach and use the product they sell?

ENDS

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