Fisher & Paykel Appliances Holdings Ltd. (FPA.NZ), a New Zealand home appliances maker, said Friday it could increase distribution of its products in the U.S. by around 50% after signing a deal with U.S. home improvement chain Lowes.
“With Lowes having nearly 950 stores, Fisher & Paykel is positioned to potentially increase distribution by around 50 per cent across the USA,” the company said in a statement.
Fisher & Paykel Appliances also said that appliance retail chain Harvey Norman has decided to withdraw from the Exclusive Dealer Arrangement, or EDA, with it in the New Zealand market from July 1.
The company said it doesn’t expect the end of the EDA agreement will materially affect its earnings.
“It is expected that the existing distributor base will ensure that the Fisher & Paykel brand remains well represented in the marketplace,” the company said.
Fisher & Paykel Appliances said its strategy in the U.S. market is “to work at the high-end with its innovative products, providing customers with features and benefits not available from more traditional technologies.”
“To now have our distribution aligned with Lowes presents us with an exciting opportunity to take our brand to a new level”, said managing director John Bongard.
“We see Lowes as being complementary to the highly-valued existing retail network that we have already established in the United States.”
From Yahoo, Singapore