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Key Samsung Retail Partner Up For Sale

Retail Prodigy Group a key partner of Samsung Australia is up for sale.

The business that holds the retail shop and distribution rights for Samsung’s direct sell stores has been looking for a buyer for the retail Company for some time.

A core asset of the business is the master franchise rights for 46 Nike stores in Australia and New Zealand.

ChannelNews understands that the Samsung direct sell retail stores struggled to generate traffic during COVID lockdown periods, this resulted in consumers flocking to the Samsung Company website to buy Samsung smartphones, tablets, TV’s, and appliances.

Last year it was thought to have generated about $12m of earnings before interest and tax.

Another problem for the business is that both Samsung and Nike have used the COVID pandemic to grow their direct sell online businesses with Nike now moving at limit supply to retail partners with stock directed to consumers who order online.

News Corp recently reported that Nike has been sending strong signals to retail partners that it wants to deal more directly with its customers as it pivoted to e-commerce in the pandemic to continue sales momentum.

It pared back the number of wholesale stores that could sell its goods and parted ways with Amazon.com in 2019.

It also had been investing in apps for shopping, selling sneakers and guided workouts.

Currently Samsung is operating pop up stores close to JB Hi Fi stores at key shopping centres such as Chadstone in Victoria.

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