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Radio Rentals launches online home electronics portal

RR Australia exceeded the market forecast with a net profit after tax of $10.9M which was 67% above last year results for the year ended 31 March 2008. The company paid a fully franked dividend of 2.48 cents, full year dividend to 4.26 cent

RR Australia (ASX:RRA), trading as Radio Rentals has launched Big Brown Box, a new online electrical store that aims to provide Australian consumers with an innovative retail experience. Managing Director John Hughes, said Big Brown Box would offer consumers the widest range of top brand products at competitive prices along with free delivery as part of its promise to provide ‘great deals – everyday’.

Mr Hughes said, “Australian consumers have been telling us that they want the ability to purchase quality brands of consumer electronics online and we believe there is a huge latent demand just waiting to be tapped.”

He said Big Brown Box would provide consumers with the opportunity to research and compare products at a time convenient to them and then make a purchase with the comfort of knowing that they are dealing with a reputable retailer that has been in the business for over 70 years. “With our free delivery we believe that it won’t take long for consumers to really embrace Big Brown Box,” he said.

Recent reports had predicted e-commerce growth to average 24 per cent annually through 2011, and online sales expected to continue the explosive growth of the last several years, with $31.1 billion in B2C sales projected for 2011.

In providing a country-wide delivery service, Big Brown Box will utilise the strength of the Radio Rentals store network for larger items while smaller items will be distributed by Australia Post.

RR Australia was trading at 46 cents.