Compaq Connect Plan Shelved In Australia
SYDNEY, AUSTRALIA, 1999 OCT 24 (NB) -- By John Stackhouse and David
Frith, Computer Daily News. "Business as usual", huh? Compaq Computer
Australia [NYSE:CPQ] appears to have pulled the plug on previously revealed
plans to franchise more than 100 one-brand independently-owned "Compaq
Connect" retail stores in the face of spirited opposition to its marketing plans
from Australian retail giant Coles Myer [AUS:CLM].
For the moment, at least, Compaq will keep its eight company-owned "pilot"
stores in Melbourne and Brisbane, and it will still be represented in Coles
Myer stores. But it seems Coles Myer will be involved in any further move
into the retail arena - a decision which would doubtless stir the interest of
other Compaq resellers.
The moves come after one Coles subsidiary, Harris Technology, announced
it would no longer handle Compaq product, and some group executives
threatened to dump the brand from all Coles Myer outlets when a distribution
agreement expires in the near future - presumably after the Christmas retail
selling season was safely over.
This was in retaliation for Compaq's move into direct retail selling. Coles
outlets include the Kmart, Office Works, Myer and Grace Bros chains - a
formidable swag of the Australian retail scene.
After prolonged talks on Thursday, Coles Myer and Compaq on Friday put
out a joint press release proclaiming a new "partnership" - and Harris
Technology chief Ron Harris told Computer Reseller News (CRN) the chain
will begin buying Compaq products immediately.
The media release has three highlights:
Coles Myer and Compaq will work together in "a closer partnership" to meet
needs of consumers and small business customers.
They are exploring "opportunities for both companies to improve delivery of
products and services and generate new revenue."
Small business and consumers will "benefit" from the partnership - how is
not explained.
The release is couched in management-style platitudes ("Recent
discussions between the two companies highlighted the fact that they had
individually developed similar customer-orientated strategies. The new
partnership will capture the synergies of these strategies and the respective
capabilities of both companies") but gives no details.
The industry, alive with conjecture that rather pithier language was used in
the recent discussions, will be waiting to see what it all really means.
It will also be waiting to see if Compaq Australia managing director Ian
Penman moves to heal the remaining rift with leading Australian retail chain
Harvey Norman, which was first to dump the Compaq products: a decision
variously claimed to be worth A$50 million (US$32.40 million) to A$97 million
($62.86 million) a year.
Jon Wood, Coles Myer's chief information manager - identified by CRN as its
source for the news that dumping Compaq was under discussion - gets a
special mention in the joint press release.
It says: "When asked about the existing Compaq Connect stores, Mr Wood
commented: 'Given the new partnership we are comfortable that the existing
Compaq Connect stores will work along side our other channels.'"
It does not mention Coles Myers' attitude on stores other than the existing
eight - nor does it explain who "asked" Woods about the Compaq Connect
stores. It sure as hell wasn't the IT press, which found access to Wood
rather hard to come by late last week.
Exchange Rate: $1 = A$1.55
Reported By Newsbytes.com, newsbytes.com
21:26 CST
(19991024/WIRES ASIA, PC/) |
