1 00:00:00,000 --> 00:00:02,560 Speaker 1: It's been a week where bricks and mortars reminded us 2 00:00:02,640 --> 00:00:05,000 Speaker 1: of the grind and retail fortune favors. They were closing 3 00:00:05,040 --> 00:00:07,880 Speaker 1: until Garage Project came along and saved it. Last week 4 00:00:08,000 --> 00:00:09,760 Speaker 1: kitchen things hit the wall. Of course, Smith's City in 5 00:00:09,760 --> 00:00:12,200 Speaker 1: the hands of the accountants now and we've got Kadim 6 00:00:12,560 --> 00:00:15,640 Speaker 1: KMD brands. They're looking to close twenty one stores. David 7 00:00:15,720 --> 00:00:18,320 Speaker 1: Kirk's the chairman of KMD and is with us, David Morning, 8 00:00:19,040 --> 00:00:21,840 Speaker 1: I like Catman, Do Rip, Curl and Obos. Is there 9 00:00:21,840 --> 00:00:24,760 Speaker 1: any delineation between the three or all three struggling? 10 00:00:26,600 --> 00:00:30,760 Speaker 2: They're all, they're all. They're all tough environment for all companies. 11 00:00:30,800 --> 00:00:33,559 Speaker 2: Obos is mostly exposed to the US, it's a US company, 12 00:00:34,920 --> 00:00:38,680 Speaker 2: and the other two are exposed to Australasian domestic spending 13 00:00:38,720 --> 00:00:41,280 Speaker 2: and consumer spending. So yeah, it's a tough environment for 14 00:00:41,360 --> 00:00:41,760 Speaker 2: all of them. 15 00:00:41,880 --> 00:00:45,239 Speaker 1: Is spending tough everywhere in the world or everywhere you are, 16 00:00:45,400 --> 00:00:47,440 Speaker 1: or is New Zealand and outlier. 17 00:00:48,000 --> 00:00:51,320 Speaker 2: No, it's tough everywhere. This is the greatest uncertainty actually 18 00:00:51,400 --> 00:00:53,800 Speaker 2: is in the United States. Things are it's all over 19 00:00:53,800 --> 00:00:55,920 Speaker 2: the place over there, and. 20 00:00:57,160 --> 00:00:59,400 Speaker 3: New Zealander is tough and pop in New Zealand a 21 00:00:59,400 --> 00:01:00,880 Speaker 3: little bit tougher than Australia. 22 00:01:00,960 --> 00:01:03,760 Speaker 2: I think there's a little bit more optimism coming through 23 00:01:03,760 --> 00:01:05,920 Speaker 2: in Australia, but I'm sure we'll get there. 24 00:01:05,920 --> 00:01:08,800 Speaker 1: In you young, what's your sense of your model the 25 00:01:08,840 --> 00:01:11,520 Speaker 1: way you do business versus the economy in other words, 26 00:01:11,520 --> 00:01:12,360 Speaker 1: it affects everyone. 27 00:01:13,680 --> 00:01:14,600 Speaker 3: Yeah, I think that's right. 28 00:01:14,640 --> 00:01:18,760 Speaker 2: I mean we are a people talk about as discretionary retail. 29 00:01:18,800 --> 00:01:20,640 Speaker 2: In other words, people can decide whether they buy or 30 00:01:20,640 --> 00:01:23,920 Speaker 2: they don't, and when there, when there, you know, wallets 31 00:01:23,920 --> 00:01:25,840 Speaker 2: are a bit tight and straight to being high for 32 00:01:26,080 --> 00:01:29,160 Speaker 2: quite a period that's been difficult for people. Then they 33 00:01:29,240 --> 00:01:32,440 Speaker 2: don't exercise their discretion and buy the sorts of products 34 00:01:32,480 --> 00:01:34,240 Speaker 2: that we sell. So it does depend on which part 35 00:01:34,240 --> 00:01:36,280 Speaker 2: of the market you're in. People have to buy food, 36 00:01:36,560 --> 00:01:39,160 Speaker 2: you know, if your kitchen appliants breaks, you have to 37 00:01:39,360 --> 00:01:41,720 Speaker 2: have to replace it, but they really don't have to 38 00:01:41,720 --> 00:01:44,280 Speaker 2: go out and buy an insulation jacket or a raincoat 39 00:01:45,000 --> 00:01:48,640 Speaker 2: or a wetsuit. So we are genuinely discretionary and in 40 00:01:48,760 --> 00:01:51,360 Speaker 2: difficult times people hang on to their money. 41 00:01:51,400 --> 00:01:53,320 Speaker 1: What about the seasonality when you have a bad winter, 42 00:01:53,360 --> 00:01:56,080 Speaker 1: bad summer, etc. That's beyond your control? Is that real? 43 00:01:57,200 --> 00:01:58,120 Speaker 3: Yeah? That is real. 44 00:01:58,200 --> 00:02:00,960 Speaker 2: That is definitely real, but we try not to focus 45 00:02:01,000 --> 00:02:04,520 Speaker 2: on that as something that's that we make excuses for. 46 00:02:04,840 --> 00:02:06,680 Speaker 2: But we did have a very warm lead into winter 47 00:02:06,720 --> 00:02:09,480 Speaker 2: this year and then we had a good, decent cold winter. 48 00:02:09,600 --> 00:02:12,119 Speaker 2: So it does make a big difference, particularly for cat 49 00:02:12,160 --> 00:02:16,600 Speaker 2: Mand because you know, we provide gear that's used in 50 00:02:16,680 --> 00:02:19,760 Speaker 2: cold weather or in rainy weather, and similarly for to 51 00:02:19,760 --> 00:02:22,200 Speaker 2: some extent, for Rip Curl. You know, people don't get 52 00:02:22,200 --> 00:02:24,040 Speaker 2: to the beach if it's pouring with range, so they 53 00:02:24,040 --> 00:02:27,440 Speaker 2: don't need to replace their wetsuit or buy some swimwear. 54 00:02:27,680 --> 00:02:30,080 Speaker 1: I was reading an article on AU Finance this morning 55 00:02:30,120 --> 00:02:35,399 Speaker 1: that called you an iconic ossie retailer. What happened there? 56 00:02:37,040 --> 00:02:39,880 Speaker 2: You mean calling called candy brands and iconic? Yeah, well, 57 00:02:39,880 --> 00:02:41,720 Speaker 2: I think the business is much bigger in Australia now 58 00:02:41,720 --> 00:02:42,720 Speaker 2: than it is in New Zealand. 59 00:02:42,919 --> 00:02:45,840 Speaker 1: Form to David christ Juge, for goodness sake, yes. 60 00:02:45,960 --> 00:02:48,840 Speaker 3: CapMan Do. But Mike, there's three brands now. 61 00:02:48,880 --> 00:02:52,000 Speaker 2: There's Catman Do, There's Rep Curl and Obo's And that's 62 00:02:52,040 --> 00:02:55,360 Speaker 2: actually really important because we get that seasonal diversification. 63 00:02:55,400 --> 00:02:56,520 Speaker 3: We've got summer around winter. 64 00:02:57,400 --> 00:02:59,760 Speaker 1: You excited about the rugby, You buying into this fifty 65 00:02:59,800 --> 00:03:01,840 Speaker 1: years as Eden Park. Oh my god, we're not as 66 00:03:01,840 --> 00:03:03,320 Speaker 1: good as we used to be. The South African is 67 00:03:03,320 --> 00:03:04,079 Speaker 1: going to kill us thing. 68 00:03:06,280 --> 00:03:07,840 Speaker 3: Well, I don't buy the last part of that. 69 00:03:08,120 --> 00:03:10,280 Speaker 2: I think it's pretty exciting though, to have a long 70 00:03:10,360 --> 00:03:13,760 Speaker 2: record to defend at Eden Park, and I think that 71 00:03:14,120 --> 00:03:18,960 Speaker 2: creates for a lot of interest and I'm very brought 72 00:03:19,000 --> 00:03:22,959 Speaker 2: into creating interests for rugby. I think we're gonna be 73 00:03:23,000 --> 00:03:24,400 Speaker 2: killed at all. I think it's gonna be a really interesting 74 00:03:24,440 --> 00:03:26,600 Speaker 2: game and I think we had a good chance of winning. 75 00:03:26,639 --> 00:03:28,120 Speaker 1: Good on, You're nice to talk to. You appreciate it, 76 00:03:28,200 --> 00:03:31,040 Speaker 1: David Kirk, chairman on these days of km D brands, 77 00:03:31,760 --> 00:03:35,920 Speaker 1: according to au Financer and Iconic Hosy retailer. For more 78 00:03:36,000 --> 00:03:39,080 Speaker 1: from the Mic Asking Breakfast, listen live to news talks. 79 00:03:39,080 --> 00:03:42,280 Speaker 1: It'd be from six am weekdays, or follow the podcast 80 00:03:42,320 --> 00:03:43,200 Speaker 1: on iHeartRadio.