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Global Marketplace and Vicinity Partnership an “Ideal Strategic Fit”
Vicinity Centres has entered a strategic partnership with Global Marketplace, taking an almost 20 percent stake in the business to bridge the gap between online and in-store retail.
Global Marketplace (GMP), the parent company of Click Frenzy, Click Central and Power Retail, will enter a strategic partnership with Vicinity Centres, which owns 61 retail destinations including Chadstone and DFO.
This investment plays an important role in the expansion of Vicinity’s omnichannel retail presence, and further increases GMP’s footprint in digital commerce.
“This is an ideal strategic fit – Vicinity Centres owns and manages some of Australia’s leading physical retail destinations, and GMP offers a substantial footprint in digital commerce,” explained Nathan Brown, CEO of GMP.
“GMP will add to Vicinity’s physical retail reach by offering established e-commerce brands, an audience of over 1.7 million online shoppers, and data and insights via Power Retail, Click Central, and two of the four biggest weeks on the Australian online retail calendar including Click Frenzy.
“Joining forces with Vicinity will facilitate GMP’s continued growth and enhance the performance of omnichannel retail in Australia and deliver some ground-breaking new initiatives for retailers and customers,” he said.
Vicinity is one of the leading omnichannel retail businesses, and the new investment will connect its 7,00 retail partners with online promotions and marketplaces. This aims to ‘deliver shared value creation’ for its retail partners, security holders and consumers.
“Our investment in GMP and expansion into omnichannel retail introduces new in-store and online sales opportunities while also extending the reach of our retail partners and supplementing the 340 million visits we had to our centres in FY21,” said Justin Mills, the Chief Innovation and Information Officer at Vicinity.
“Investing in GMP will help facilitate online sales for our retailers and complement our broader fulfilment and distribution strategy which will provide retailers with efficient shopping centre-based fulfilment solutions and take advantage of our coast-to-coast physical footprint, with 66 percent of the Australian population living within 30 minutes of our doors.”
This comes off the back of GMP’s acquisition of New Zealand based GrabOne, which is expected to be completed by the end of October. In 2016, Tanarra Capital first invested in GMP and will remain a substantial stakeholder in the business. Furthermore, the business has committed additional material to fund the GrabOne acquisition.
As part of this partnership, a representative of Vicinity will hold a position on the GMP Board. They will join recently-appointed Naomi Simson, Founder of RedBalloon and investor on Shark Tank Australia, and Justin Hind, digital business entrepreneur and CEO, as Non-Executive Directors. Additionally, they will work alongside Executive Director, Grant Arnott, Founder of Global Marketplace and Non-Executive Director Anna Shave, Principal of Tannara Capital.
Disclosure: Global Marketplace is the parent company of Power Retail.
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