The Warehouse posts growth for fifth consecutive quarter

NZ-based retail conglomerate The Warehouse Group has posted a lift in third quarter sales amid changes to meet changing customer expectations.

Group chief executive Nick Grayston said this is the fifth consecutive quarter that delivered an upward sales trend.

The Warehouse Group has posted a 1.9 per cent lift in third quarter sales compared to the previous corresponding period to $714.4 million.

The group’s flagship Red Sheds brand has returned to positive same-store sales growth, posting a 1.7 per cent lift in same-store sales to $363.3 million in the three months ending April 28. For the second quarter, Red Sheds’ sales were down 1.4 per cent overall and down 0.3 per cent on a same-store basis.

Overall sales rose 0.8 per cent.

Torpedo7 saw a 6.9 per cent lift in sales with seven new stores opened in the past 12 months. Warehouse Stationery reported a 0.6 per cent increase in third quarter sales to $71.5 million. Noel Leeming posted sales of $217.1 million for the quarter, a 2.3 per cent increase compared to the same quarter last year.

Online sales rose 18.7 per cent year on year. Grayston said the group will continue to invest in its digital platform with a testing phase to commence in the fourth quarter.

“Although there was still more work to do, it was pleasing to see that the substantial work undertaken to improve business performance had now delivered an upward sales trend over five consecutive quarters of growth,” Grayston said.

“We’re encouraged that our sales are heading in the right direction as we continue to drive changes to meet changing customer expectations and leverage our group scale to operate more efficiently and deliver growth in earnings.”

According to the retailer, margins were up across most categories and clearance improved significantly on last year but units sold were still down 0.8 per cent.

The Warehouse Group announced the Easter and Anzac Day public holidays and fine weather conditions contributed to Torpedo 7’s sales growth.

“Performance was up across all categories, resulting in continued market share growth in a competitive market

Grayston said performance was strong across all categories, resulting in continued market share growth in a competitive market. Small appliances and audio visual and gaming categories performed particularly well.

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