Two of the stores planned for Australia will be in Sydney and one will be in Brisbane. The company will also open its first New Zealand store in Auckland.
The stores, with refurbishment and branding budgeted at $580,000, are expected to open in June this year. Overall payback period is expected to be less than 12 months, providing a highly attractive rate of return on investment.
According to AuMake, its future Brisbane store, which will be set in a 300sqm retail space, may be named its flagship store in Brisbane.
Once the three stores open, it will take the company’s store count in Australia to 17.
AuMake’s Auckland store will be located in Mount Eden Road, Grafton and will be set in a 400sqm retail space.
“This store represents AuMake’s entry into a new and exciting market given many of the Chinese tourists visiting New Zealand do not visit Australia on their journey,” the company said.
“While the New Zealand cross-border retail market is smaller than the Australian market, the company’s due diligence indicates New Zealand is significantly under serviced,” it added.
AuMake said with the new stores, the company expects its current internal sales forecast to increase by 30 to 40 per cent over the next 12 months.
Fixed costs are expected to remain stable as the additional stores will utilise existing infrastructure such as the Auburn Warehouse for storage and distribution, as well as the head office for marketing and brand promotion.
“The opening of these four new stores is consistent with the company’s strategic focus to rapidly grow our share of the $2.5 billion Australia and New Zealand crossborder retail market,” said Keong Chan, AuMake executive chairman.