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the Pumpkin Patch retail experience      wholesale partners      catalogue and internet

The consistent and strong sales growth demonstrated over the last few years has resulted from the Company using a range of sales channels including:

• Pumpkin Patch retail stores
• International wholesaling;
  • Department stores
  • Pumpkin Patch branded stores owned by third parties
• Catalogue and Internet
  
  

Pumpkin Patch Retail Stores

Pumpkin Patch currently has 228 stores in New Zealand, Australia, the United Kingdom and the United States and employs approximately 3,100 staff (including both full time and part time staff). 52 of these stores are located in New Zealand with 107 in Australia, 35 in the United Kingdom and 34 in the USA.

The Pumpkin Patch shopping experience is fresh and unique - when people walk into one of the stores they get a real sense of the passion that the Company has put into the clothes. Each of these stores sells the comprehensive Pumpkin Patch collections and is designed to be open, inviting and exciting. The stores feature specially designed areas for boys and girls, a cool mini-store for the Urban Angel brand, a toy-filled play area to keep even the smallest shoppers amused, and lots of room for parents and kids to move around.

The fixtures and fittings throughout our stores reflect the commitment to quality that is evident throughout our business. Special interior effects and hand-painted finishes are used to create a warm and friendly 'designer store' atmosphere.

Given that the unique stores are perceived by some parents as a shopper's heaven it is not surprising that several stores have been voted by shopping centre customers as the best in the centre.

Pumpkin Patch carefully evaluates the location for new stores. The Company undertakes reviews with external consultants that analyse customer catchments, customer demographics, availability and cost of retail space, proximity of competitors and proximity to other existing Pumpkin Patch stores.

Pumpkin Patch's in-house design and fit-out teams enable the Company to quickly design and build new stores. Generally a store is open within eight to ten weeks from the receipt of final plans and approvals.

Most stores are between 250m² and 350m² (the largest is 500m²) with standard leases having initial durations of approximately five years.

Pumpkin Patch Store Numbers (Financial Year End)
Pumpkin Patch has identified specific store expansion opportunities in New Zealand, Australia, the UK and the USA and expects to open an additional 4 stores in Australia, 4 stores in New Zealand, 1 store in the UK and 1 store in the USA throughout the 2009 financial year.

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Wholesale Partners

As Pumpkin Patch continues to grow, interest from new markets is also growing. Research undertaken by Pumpkin Patch indicates that opportunities exist for establishing the brand through stand-alone stores located within shopping centres and through the wholesale sales to Department stores, either with branded in-store concepts or within the existing store environment. Our new market development is focused on markets where:

there is a perceived gap in the mid-upper segment of the market;

the market is of a size (or allows entry to neighbouring markets) which justifies the entry and set-up investment costs;

the ranges can be priced at a competitive retail price positioning point;

Pumpkin Patch and the retailer can both acheive acceptable profit margins;

the existing concept can be established without the need for major change to the products or ranges;

the economy is stable and growing; and,

the necessary systems and logistics to efficiently and quickly deliver products to the market, can be quickly implemented.

In addition to the wholesale sales to the department stores such as Nordstrom in the United States, David Jones in Australia, and House of Fraser in the United Kingdom, the wholesale sales team also services the operations in the Middle East, South Africa, Russia and throughout Asia. To accomodate interest from various parties located in various markets a "Distribution Enquiries" section is included on the investor relations site to facilitate the enquiry process.

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Catalogue and Internet: Pumpkin Patch Direct

Currently Pumpkin Patch has specific websites for New Zealand,  Australia,  United Kingdom, Ireland and the United States. On average in 2008, Pumpkin Patch's websites received (in total) approximately 5,500,000 visits per month.

The internet sites, which are predominantly developed by Pumpkin Patch's in-house team of specialists, are regularly refreshed to include the latest available ranges and remove items where stock is low.

During the past 18 years Pumpkin Patch has built up a significant database of customers that have either bought merchandise from stores, over the internet or out of the catalogue. The database is regularly updated and analysed to ensure that customer details are up-to-date and that "non-responsive" entries are deleted; it complies with best-practice principles of permission based Direct Marketing.

Each season Pumpkin Patch produces over 500,000 catalogues to customers in New Zealand, Australia, the UK and the USA. The catalogues are designed in-house and feature the latest fashion ranges. Any sales orders received from the catalogue are processed by Pumpkin Patch's in-house call centre (located at its head office) and dispatched by the distribution centre.

The Pumpkin Patch call centre in Auckland is operated six days a week, 24 hours a day and has facilities for 20 operators at any one time.

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