Tauranga based online business iQ Toys is expanding and reaching new markets following its acquisition of retail website Gumboot.co.nz.

Purchased in July, iQ Toys owner Shane Loomb says Gumboot.co.nz 'has potential to be a multimillion dollar business”.

Owner of iQ Toys, Shane Loomb, is now the proud owner of former DVD online retailer Gumboot.co.nz

Gumboot was previously a specialist DVD retailer, but with this acquisition, Shane says there are some changes as the toy and DVD catalogues of the two websites merge.

'There is quite a bit of crossover, on our toy side we have virtually copied the entire toys range across.”

There is also crossover in DVDs with a catalogue of 27,000. Shane says there are also new product lines.

'We are rapidly adding a selection of books aimed for adults.”

By buying Gumboot.co.nz, Shane is trying to take the best elements of his business and work them in new markets.

'We are opening up a whole new market segment, but using our expertise on online.”
This expertise has already built iQ Toys into a solid business and now following the Gumboot.co.nz acquisition the combined revenue of these businesses is expected to exceed $5 million in the coming year.

The idea to buy Gumboot.co.nz came from Shane listening to his iQ Toys customers.
'Quite often we would get asked by people if they knew of a good online shopping website where they could buy the rest of the presents for the family, particularly for people from overseas who were buying for friends and relatives.”

iQ Toys operates from a 2300sqm premises near Tauranga Airport and Shane says such a location is brilliant for his business.

'It's pretty central from a distribution perspective and we are bringing in the odd container so having the port there is a huge advantage.”

Shane says there are other strong positives for logistics too.

'Strategically it is quite a good distribution hub relative to Auckland.”

There are labour benefits by being based in Tauranga also, says Shane.

'Our staff can get here within 10 minutes instead of spending 40 in the car, so when they are at work they are able to put in a greater effort.”