NZ posters: Real Groovy for sale

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Magilla
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NZ posters: Real Groovy for sale

Postby Magilla » 05 Jul 2008, 03:37

Well, well, well, looks like Real Greedy are in the cart. :twisted: I've been a customer with them since the mid-'80s and even more so since they bought out Echo a few years' ago.
Obviously they've had to adapt to competing with the Warehouse, new technology, etc, but I also can't help thinking that they've been their own worst enemy. Their stock has been over-priced in recent years and their selection hasn't been as good as it once was. Just yesterday I was saying to a friend that I wouldn't be surprised if they were struggling financially, as they just weren't carrying the same level of stock, nor as extensive range of artists' back catalogues. The prices on their second-hand stock has became a joke, as well.
The Dunedin staff are a good bunch; but the manager told me that they weren't given a pay raise on the grounds that times were tight, etc. Then, a few weeks later, Chris Hart spalshed out on a custom-built car, worth NZ$250,000, from America. :roll:
Whitcoulls recently bought out the NZ branches of Borders, which must be eating into Real Groovy's market share. There are also strong rumours around Dunedin that Borders are going to open here in a large new mall being built on George St.


This from today's New Zealand Herald:

Legendary music business up for sale
5:00AM Saturday July 05, 2008
By Craig Borley

Legendary music store Real Groovy and its entire collection of associated businesses are up for sale.

Managing director Chris Hart told the Weekend Herald yesterday a bad foreign exchange deal had left the 28-year-old business in need of capital. With his business partners wanting to pursue other interests, he had no option but to offer the entire business for sale.

"Essentially, what we're doing is getting the widest possible interest by going public."

Mr Hart was unable to confirm whether Real Groovy would look and operate the same after a sale. That would depend on the buyer, he said.

"I don't have a crystal ball. My personal preference is not to sell at all, and if I could find a business partner with some capital, I'd be here another 28 years."

Finance company collapses had not affected the business, and Real Groovy stores' sales were substantially higher than those of the Sounds music store chain, which shut in November last year after its parent company collapsed owing almost $20 million.

Mr Hart said the emergence of JB Hi Fi into the New Zealand music sales landscape had brought a price war between it and The Warehouse - with both chains often selling music for cheaper than Real Groovy could buy it.

But neither that, nor ever-increasing online music downloads, had forced him to offer Real Groovy for sale.

"New sales are only 28 per cent of our business, so it's not like it's a major component. We do a huge amount of second-hand sales. That's really the core part of the business. That's how Real Groovy started, and it's also responsible for giving Real Groovy the strength that it's got. Because we can't really compete on price."

Their only real competition in second-hand sales, Trade Me, managed to complete just one in five sales, Mr Hart said.

"But with us, unless they're damaged, or they're by Paul Holmes, we'll take anything."

New Zealanders knew that, still made use of it, and the business was in a strong position accordingly, Mr Hart said.

"There's nothing wrong with the business itself. We're still turning over a considerable amount."

Branching out from the long-held Queen St site to Wellington, Christchurch and Dunedin had also been successful, he said,with the new stores - in particular Wellington - "holding their own" financially.

But costs had increased. Rent on the 2415 sq m Queen St property had risen 100 per cent in the past five years.
"U2 routinely spent a year in the studio...I have a theory: if you put four monkeys in the studio for a year with Lanois and Eno and Lillywhite, they would make a pretty good record, too."

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Re: NZ posters: Real Groovy for sale

Postby The Write Profile » 05 Jul 2008, 04:21

You know, for all I complain about their sometimes ridiculous prices for imports, they were good to me insofar as I was able to get pretty much anything I wanted, and (most of the time) it would arrive pretty quickly. Plus, the Dunedin (and the Christchurch) staff are very friendly, knowledgeable and not too snobby. But the fact of the matter is that in the second-hand market they were very stingy in giving credit, considering how much they would susequently cost them.

I shouldn't complain as I was effectively getting it for "free" most of the time, as most of what I traded in were promo/review copies of things I didn't like, but I was really surprised at the amount of occasions I'd get $10 in store credit (not cash) and then they'd try and fob them off for $25, which is often pretty close to the going price for brand new! It's one of the reasons I steered clear of their second-hand stock, because most of the time I knew I could get it for roughly the same price new or sometimes (if they had a sale) cheaper, unless the items were relatively rare- which they hadn't been in recent times, as Magilla alluded to.

And it does seem more than a little ironic that barely three years after they bought out Echo down south they're facing a buyout themselves. What goes around, comes around, I suppose. But yeah, I'm in a bit of a bind- I spend far too much money there as a rule (I only go downmarket to Warehouse and/or online, if I knew the price and avaliabilty are right), probably totalling in the thousands of dollars over the years, but sometimes they really gave the customer a bad rap. I guess it's what happens when you're the dominant independent.

Galaxy is much better in Christchurch anyway- a proper "home" store, and with great stock that's at once selective, but also pretty all encompassing. A lot of the time the prices are pretty good too- he's great for imports. And the manager seems a good bloke. I should frequent them more often.

The real question is who might be next to go the way of Real Greedy- I wonder how the "CD & DVD Store" chain are holding up?

Interesting to hear about the planned Borders in Dunedin- now there's a chain I love. For books anyway- their music selection is pretty limited.
It's before my time but I've been told, he never came back from Karangahape Road.

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Re: NZ posters: Real Groovy for sale

Postby The Red Heifer » 05 Jul 2008, 04:56

What do you ovinophiles think of JB Hi Fi? Have they expanded to anywhere near any of you?

I personally love them, aside for their annoying lack of Robert Pollard solo albums unless you're in the city store :evil:
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Re: NZ posters: Real Groovy for sale

Postby Magilla » 05 Jul 2008, 05:57

The Red Heifer wrote:What do you ovinophiles think of JB Hi Fi? Have they expanded to anywhere near any of you?

I personally love them, aside for their annoying lack of Robert Pollard solo albums unless you're in the city store :evil:


They're only in Auckland at the moment, so I can't speak from personal experience about them. However, their presence in Auckland is clearly causing trouble for R/G. Good to know they've got branches in Sydney though, I'll be able to check 'em out in a few months. 8-)
"U2 routinely spent a year in the studio...I have a theory: if you put four monkeys in the studio for a year with Lanois and Eno and Lillywhite, they would make a pretty good record, too."

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Re: NZ posters: Real Groovy for sale

Postby Arthur Crud » 05 Jul 2008, 07:27

Well well well eh? Hmmmm......

My next door neighbour who is in the radio business told me months ago to "cash in your Real Groovy vouchers" cos he'd heard the writing was on the wall.

I don't know how any retail music shop survives. Case in point - the Robyn Hitchcock 'I wanna go backwards' 5 CD box:

Marbecks $99
JB Hi Fi $79
Real Greedy - didn't even have a copy
Amazon - $47

what are ya gonna do?

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Re: NZ posters: Real Groovy for sale

Postby jimjim » 05 Jul 2008, 09:27

:(
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Re: NZ posters: Real Groovy for sale

Postby Magilla » 05 Jul 2008, 11:01

The RightGraduate Profile wrote:Galaxy is much better in Christchurch anyway- a proper "home" store, and with great stock that's at once selective, but also pretty all encompassing. A lot of the time the prices are pretty good too- he's great for imports. And the manager seems a good bloke. I should frequent them more often.

The real question is who might be next to go the way of Real Greedy- I wonder how the "CD & DVD Store" chain are holding up?


Galaxy is a wonderful shop and owner / manager Dave Imlay is a really good guy. They'll survive as they've got various left-field niches covered really well and have loads of loyal customers. Radar and Penny Lane in Christchurch will also continue as they've got their own reliable niches, too.
In Wellington, Slow Boat and Parsons will also survive, for the same reasons.
It'll be interesting to see what does happen with The CD & DVD Store. I'd like to see them go under, if only for the fact that the Dunedin branch staff are such flagrant arseholes.
When we had a few drinks with Garth C a while back Matt, he told us he'd heard from industry sources just before Sounds collapsed that either Sounds or CD & DVD was going to go under, as there just wasn't enough room in the market for two top-40 orientated chains. Therefore, I presume that CD & DVD will stay around, as now only they cover the top-40 crowd.

Overall, it does appear that it literally is a case of Real Greedy being "Real Greedy". They spent a lot of money setting up in Wellington, Christchurch and Dunedin, then when the financial shit hits the fan, they don't have the money to survive it. Oh dear, how sad.Still, I reckon there'll be a shit-load of bargains in the closing down sale... :twisted:
"U2 routinely spent a year in the studio...I have a theory: if you put four monkeys in the studio for a year with Lanois and Eno and Lillywhite, they would make a pretty good record, too."

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Re: NZ posters: Real Groovy for sale

Postby Magilla » 05 Jul 2008, 11:07

STUPIDITY writ large wrote:Well well well eh? Hmmmm......

My next door neighbour who is in the radio business told me months ago to "cash in your Real Groovy vouchers" cos he'd heard the writing was on the wall.

I don't know how any retail music shop survives. Case in point - the Robyn Hitchcock 'I wanna go backwards' 5 CD box:

Marbecks $99
JB Hi Fi $79
Real Greedy - didn't even have a copy
Amazon - $47

what are ya gonna do?


Precisely. There's been a lot of box-sets and cds I've bought on-line either at Trade Me or Fishpond this year that have been so much cheaper than R/G.
"U2 routinely spent a year in the studio...I have a theory: if you put four monkeys in the studio for a year with Lanois and Eno and Lillywhite, they would make a pretty good record, too."

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Re: NZ posters: Real Groovy for sale

Postby never/ever » 05 Jul 2008, 11:37

The Red Heifer wrote:What do you ovinophiles think of JB Hi Fi? Have they expanded to anywhere near any of you?

I personally love them, aside for their annoying lack of Robert Pollard solo albums unless you're in the city store :evil:


My pleasure. :)
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Re: NZ posters: Real Groovy for sale

Postby Ghost of Harry Smith » 10 Jul 2008, 06:25

Slightly off topic guys but I'm wondering if you could steer me to the best secondhand record shops in Christchurch and the South Island generally? I'm bringing my gal for a holiday there in the first week of August (she's a glacier freak, wants to see the West Coast in Winter) and would appreciate a steer in the right direction. Vinyl is my main interest, cheers!

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Re: NZ posters: Real Groovy for sale

Postby Magilla » 10 Jul 2008, 08:19

Ghost of Harry Smith wrote:Slightly off topic guys but I'm wondering if you could steer me to the best secondhand record shops in Christchurch and the South Island generally? I'm bringing my gal for a holiday there in the first week of August (she's a glacier freak, wants to see the West Coast in Winter) and would appreciate a steer in the right direction. Vinyl is my main interest, cheers!


In Christchurch, Galaxy is excellent for both new and s/h, Penny Lane (two shops) are pretty good for s/h, especially vinyl, Real Greedy is worth having a look at, but, as I'm sure you've gathered, by wary of their prices and patchy selection. Radar is certainly worth a look at for new, non-mainstream, new stuff. There's a Border's in Riccarton, which is about a five minute drive from central Chch.

There are some excellent s/h bookshops in downtown Christchurch as well, especially Smiths.

As for the West Coast itself, it's only small towns there; there may be a few shops that sell a mixture of mainstream books and music, but nothing else.

If you're going to any of the following places:

Nelson - Everyman Records.

Timaru - Rhino.

Dunedin - only a branch of Real Greedy. Records Records used to be, arguably, the best s/h shop in the country, but has gone down hill so badly under the new owner, it's not even worth going there any more.

If you want any more info in general about the South Island, just PM me. TRGP lives in Christchurch, too, so I expect he'll be able to help as well, if you want.
"U2 routinely spent a year in the studio...I have a theory: if you put four monkeys in the studio for a year with Lanois and Eno and Lillywhite, they would make a pretty good record, too."

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Re: NZ posters: Real Groovy for sale

Postby Arthur Crud » 10 Jul 2008, 23:36

Magilla wrote:Penny Lane (two shops) are pretty good for s/h, especially vinyl,

There's 2 Penny Lanes? I didn't know that. I've only been to the one in Sydenham. I always visit with great expectations but leave disappointed (and empty handed). There are some interesting things in there that you mightn't pick up anywhere else but they always seem to be in terrible condition at EX/ EX prices. Mind you if there's another one around I'd check it out. Cos it's a records shop and I'm an addict.

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Re: NZ posters: Real Groovy for sale

Postby Magilla » 10 Jul 2008, 23:43

STUPIDITY writ large wrote:
Magilla wrote:Penny Lane (two shops) are pretty good for s/h, especially vinyl,

There's 2 Penny Lanes? I didn't know that. I've only been to the one in Sydenham. I always visit with great expectations but leave disappointed (and empty handed). There are some interesting things in there that you mightn't pick up anywhere else but they always seem to be in terrible condition at EX/ EX prices. Mind you if there's another one around I'd check it out. Cos it's a records shop and I'm an addict.


My boss has just told me that it's now just the main shop in Sydenham that's open and that he's bought heaps of really good stuff there for reasonable prices. He reckons the good stuff goes pretty quickly, once it's put out in stock.

Plus, the owner puts heaps of good stuff on Trade Me, where he goes by the name of "Heine woman" or something; whoever the frequent record dealer based in Rangiora is.
"U2 routinely spent a year in the studio...I have a theory: if you put four monkeys in the studio for a year with Lanois and Eno and Lillywhite, they would make a pretty good record, too."

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Re: NZ posters: Real Groovy for sale

Postby Magilla » 10 Jul 2008, 23:48

Back to Real Greedy...earlier this week i was speaking to the former manager of the Dunedin branch. He said he'd heard about six months ago that they were struggling. Also, he said that when R/G took over Echo, he was told to put all s/h stock up to $25 :o but flatly refused, as he knew locals wouldn't accept it.
He also agreed with my above comments regarding stock levels and lack of back catalogue.

Last night I was talking to the current manager and he said they weren't in trouble financially, but did admit that Auckland and Wellington were, in effect, subsidising Christchurch and Dunedin.
He was also very non-commital about how Borders or JB Hi-Fi would affect them, if either was to open here.
"U2 routinely spent a year in the studio...I have a theory: if you put four monkeys in the studio for a year with Lanois and Eno and Lillywhite, they would make a pretty good record, too."

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Re: NZ posters: Real Groovy for sale

Postby Ghost of Harry Smith » 11 Jul 2008, 03:44

Thanks for the heads-up Magilla, that's great and more than enough record shops to consider...my gal won't let me shop for vinyl all holiday, that's for certain. I think I might give Real Groovy a miss.

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Re: NZ posters: Real Groovy for sale

Postby Arthur Crud » 11 Jul 2008, 04:14

Magilla wrote:Plus, the owner puts heaps of good stuff on Trade Me, where he goes by the name of "Heine woman" or something; whoever the frequent record dealer based in Rangiora is.

Yes I know of her/ him - always has interesting things.

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Re: NZ posters: Real Groovy for sale

Postby jimjim » 11 Jul 2008, 10:02

I have to say this is sad news. I liked the two Real Groovy stores I saw in NZ (Auckland & Welly) and figured that if I did come over at least I had somewhere decent to go to. The Auckland one was my idea of vinyl heaven!

Well, the timing is bad. I'm coming over in September and these places are closing.......noooooooooo! Still, there's a store (not RG) in Napier!
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Re: NZ posters: Real Groovy for sale

Postby Magilla » 11 Jul 2008, 22:55

jimjim wrote:Well, the timing is bad. I'm coming over in September and these places are closing.......noooooooooo! Still, there's a store (not RG) in Napier!


No they're not. As I said in my original post, they're only for sale, not closing. As I mentioned in a later post, the Dunedin branch manager told me they weren't in financial trouble overall (although Auckland and Wellington tend to subsidise Christchurch and Dunedin).

Jimjim, there are still branches of Borders and JB Hi-Fi in Auckland and Wellington, plus various good independents in each place, as well. You'll still be ok!

Places like Smoke and Fishpond are also good on-line places, too.
"U2 routinely spent a year in the studio...I have a theory: if you put four monkeys in the studio for a year with Lanois and Eno and Lillywhite, they would make a pretty good record, too."

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Re: NZ posters: Real Groovy for sale

Postby The Write Profile » 13 Sep 2008, 07:40

Looks like things have turned even worse for Real Greedy, as they clearly were expecting someone to buy them out. A classmate of mine who works there part time says they've been unable to order in any new stock in the last month- that even includes big "chart" sellers such as the latest Metallica album. Okay, Metallica aren't my thing, but the point is, these are huge unit-shifters for the store, which allows them make up any costs they might lose on the more obscure imports (mind you considering how badly they overcharge on those...). He said that his ChCh boss told the staff not to tell the customers about the fact they can't order any new stock, yet my classmate says he now makes a habbit of telling everyone who enquires about orders. As he says, "I'm not paid to lie." What a mess.
It's before my time but I've been told, he never came back from Karangahape Road.

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Re: NZ posters: Real Groovy for sale

Postby Magilla » 14 Sep 2008, 10:26

Hmm, things are getting interesting. According to the NZ Herald, just last week one of the directors bought Real Groove magazine out-right from Real Groovy. I suspect he's had a look through the books, reckons the retail arm is a goner, but the magazine is steady, so puts his eggs into that basket.

If Christchurch is struggling, then Dunedin almost certainly is as well. I wondered why they didn't have the usual open-at-midnight promo gimmick for Metallica (e.g "be the first people in the world to buy the album on the day of release")they usually do for the likes of Metallica, RHCP, etc.

Goldwax those are good ideas, but unfortunately, as you may have gathered, Real Greedy is run by drop-kicks.
"U2 routinely spent a year in the studio...I have a theory: if you put four monkeys in the studio for a year with Lanois and Eno and Lillywhite, they would make a pretty good record, too."


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