Dimmeys off the cards for Austin

NATIONAL: Troubled apparel wholesaler Austin Group is set to play with the "big boys" following an overhaul of its national distribution strategy.

The listed company, which reported a loss of $681,000 in fiscal 2007, has announced dramatic plans to reinvigorate its service model; targeting key players such as department store Myer and retail giant The Just Group in place of generic, middle-sized retailers.   

Managing director Brendan Santamaria said Austin Group had failed to respond to Australia's changing landscape, servicing discount chains such as Dimmeys and rural independents instead of targetting the "big boys" of national retail.    

"We serviced an area that had become unprofitable," Santamaria admitted, adding that over the last two to three years, department stores and large retail chains had begun to command a larger market share.

Sanatamaria said significant structural changes, such as the appointment of a new board of directors and a reinvestment in brand development, would help to drive the company's new strategy.

Former Myer buyer Ron Luff has been appointed as general manager of sales and marketing while Des Quinn, who boasts 20 years of operational experience with Coles Myer, will take on the role of production manager.