Jan 2010 Financial News

Grace batting for its new 'one-stop shop'

Jan 11, 2010

GraceKennedy (GK) subsidiary Hardware and Lumber Limited (H&L) says its recent consolidation of Western Union and Bill Express stores within its network is in an effort to promote synergies between the GK Brands.

In December, H&L opened four new outlets of Western Union and Bill Express, the remittance and cambio services of the GK Remittance Services brand in its Rapid True Value stores in Lane, Montego Bay, Ocho Rios and Mandeville. The stores are built out as separate entities within the larger Rapid True Value outlets.

Western Union and Bill Express stores are built out as separate entities within the larger Rapid True Value outlets

However, Ryan Foster, Head of Business Development and Special Projects, Hardware and Lumber, said the consolidation signals a move by the subsidiary to gain competitive advantage, rather than a divergence from core business.

"We are still in the core business of retail, lumber and hardware, however, we are saying to our customers, here is some value-added services that we think will be beneficial to you," Foster told Sunday Finance. "This is a one stop shop for you. You can do your business, pay bills, get your foreign exchange and buy wholesale lumber for retail purposes. We are selling value added services but in the context of selling the right product at the right price in the right mix."

H&L plans to add two new Western Union and Bill Express stores to the mix, but Foster disclosed this will be at the discretion of the Bank of Jamaica (BOJ) and the Financial Services Commission (FSC) which grants the license for cambio and remittance services activities.

Foster described the move as a 'great opportunity for us to earn foreign exchange' for the business, which he says faces 60 per cent of its cost from overseas suppliers. "This can mitigate quite a bit of foreign exchange loss and foreign exchange risks which we meet to pay our suppliers," he said.


Source:
Alicia Roache Sunday Finance Reporter
roachea@jamaicaobserver.com
Jamaica Observer
Sunday, January 10, 2010

http://www.jamaicaobserver.com/business/H-amp-amp-L-consolidates