James Pascoe has increased its stake in The Warehouse Group to 16.2 per cent.

Australian supermarket giant, Woolworths, has sold its 9.8 per cent stake to the company for $87 million, saying its investment in the discount department store chain is “no longer required as part of its New Zealand strategy”.

James Pascoe snapped up the 30.5 million shares for $2.85 per share, following on from its acquisition of 305,000 Warehouse Group shares in January.

It first took a 6.3 per cent stake in The Warehouse Group in October 2014. The company said The Warehouse is “another strong New Zealand brand that fits within our philosophy of supporting New Zealand retail”.

James Pascoe owns department store chain Farmers Trading Co, Whitcoulls bookstores, and jewellers including Pascoes, Stewart Dawson, Goldmark, Prouds, and Angus & Coote.

James Pascoe is owned by David and Anne Norman and has gone on the record to say it does not intend to launch a full takeover of The Warehouse.