Inside Retail Weekly

2066 Inside Retail Weekly

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Grays eCommerce Group sells DealsDirect BY TESS BENNETT I N S I D E T H I S I S S U E : Less than 18 months after the merger between DealsDirect and online auction site, Grays Australia, the publically listed Grays eCommerce Group (GEG) is selling its fixed price retail (FPR) businesses. MySale Group, the parent company of OzSale.com.au, will acquire OO.com.au, dealsdirect.com.au and topbuy.com.au and all associated customer databases, intellectual property, trademarks and goodwill, in a deal worth $5.2 million. The sale does not include any sites operated under the 'Grays Online' business name, including its standalone online wine business, GraysWine.com.au. Online auction site, Grays, merged with DealsDirect in August 2014, changing its name to Grays eCommerce Group and listing on the ASX under CEO Mark Bayliss. For MySale, the acquisition substantially increases its potential active customer base. While GEG has the chance to exit the "challenging market dynamics" of FPR. In FY15, GEG's B2C division recorded an EBITDA loss of $1.7 million, compared with a $471,000 loss in FY14. "With success in online consumer retailing driven by scale, we have consistently said that our FPR business must continue to consolidate or be consolidated," Mark Bayliss, CEO of GEG, said. "With the FPR business facing challenging times, and having carefully considered all options available for the business, the board of GEG has determined that a sale was the best strategy to enhance shareholder value." MySale scale Founded in 2007, MySale is an international online retailer listed on London's stock exchange with established flash sales sites in Australia, New Zealand, South East Asia and the UK. continued on p.2. INSIDE RETAIL WEEKLY FEATURE: 100, not out for Good Guys The Good Guys reach milestone 100 th store. p14 FEATURE: Who dares wins 20-year-old homewares retailer gets a second wind. p18 NEWS: Noodle Box gets woking Noodle Box acquires key competitor. p02 NEWS: Bronzed Aussies make waves Bondi Sands making waves in the US, UK. p04 OPINION: Retailers' ASX struggle Investor confidence in leading retailers continues to wane. p08 FEATURE: Bouncing interstate Trampoline park operator targets expansion. p16 Inside news and views on the world of retail since 1972 Oct 14 2015 F O R M O R E R E T A I L N E W S , V I S I T W W W . I N S I D E R E T A I L . C O M . A U I S S U E 2 0 6 6

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