Courts to give cash

Lucky Courts prize winners celebrate their good fortune. - Contributed

By Alva Edwards, Acting Financial Editor

POPULAR FURNITURE and electrical retail giant Courts is to offer cash of up to $2 million each month as its big prize promotion rather than continue with its proven policy of offering motor cars as its major prize attraction.

Courts managing director Hayden Singh said: "For the last five years we have offered motor cars as our big prize draw and thought we would try something different. Both JPSCo and Lotto are using cars in their promotional campaign so trying another promotional campaign in the new year gives as a fresh approach. Furthermore cash gives our customers more options. Some people may want to purchase some land, others a car but in the end they can do what they desire with a cash prize."

The move comes as a mix of lower higher purchase sales and heavier discounting on products saw operating profit at Courts slump by more than half to $251 million in the six months ended October 1, 2000 according to its latest unaudited interim results. Sales fell by $200 million to $1.77 billion while operating profit fell from $568.5 million to $250.8 million in the same period and the inducement of cash may well provide the means to bring customers back into its stores.

Mr. Singh drew attention to the fact that the cash draw prize does not carry with it tax implications and that as far as tax on cash was concerned Courts' attorney Dunn, Cox, Orrett and Ashenheim had thoroughly looked into the matter.

The new promotional campaign is called Courts Worl'O' Cash with 12 lucky winners -- one each month -- having a chance to win $2 million in cash.

The game works as follows : The first entry is made with the first $1000 spent. Additional entries with every extra $5,000 spent either by cash or credit and each entry goes back into every draw.

Each winner will receive $1 million up front simply for shopping at Courts plus as a special bonus they will also get a chance to enter the Courts Mobile Money Machine to grab for another $1 million. Whatever a person grabs in 30 seconds is theirs. For security purposes only specially printed Courts dollars will be used in the Courts Mobile Money Machine. Each winner will be presented with a cheque equivalent to the total value of their prize.

In 1999 Courts scored a major success with its Bimmer Mania and Zimmer Mania promotional campaign which had BMW's as the star attraction prize with 12 given away. The following year saw Beetlemania, which saw 24 Volkswagen Beetles given away in a campaign which, though successful, did not capture the public consciousness to the degree that Bimmer Mania did.

In the run up to the crucial Christmas period Courts cut charges on its higher purchase plans in a bid to encourage sales. The company has extended payment terms from 30 to 34 months and reduced interest rates from 20 to 18 per cent.

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