The Warehouse launches off-price offering
The new initiative, Red Rack, is available across 47 of The Warehouse’s stores nationwide, and includes brands such as Nike, Adidas, Billabong, Paul Frank, and more.
“Some Kiwis may already be familiar with off-price retailing with the likes of TK Maxx, Ross Dress for Less and Nordstrom Rack in the US and similar outlets in the UK,” The Warehouse Group chief executive Nick Grayston said.
“Our mantra is to bring Kiwis low prices every day and to make the desirable affordable. That’s what Red Rack will do.”
Customers reacted positively during a test period in seven stores, with Grayson noting that The Warehouse Group is always trying new innovations to deliver on customer expectations.
Off-price retailing is growing internationally, with the market expected to grow globally to US$33 billion by 2021, said Grayson, with The Warehouse expecting other benefits from Red Rack, with increased footfall and cross-brand private label product sales expected as a result.
“There’s definitely an appetite out there for big brand labels at low prices way below other department stores,” Grayson said.