The Warehouse Group says its third-quarter sales were relatively strong despite high inflation, volatile trading conditions and shipping delays.
The group owns and operates The Warehouse, Noel Leeming, Torpedo7, Warehouse Stationery, and The Market.
For the 13 weeks to May 1, group sales fell 2.5 per cent to $771.6 million compared to the previous corresponding period.
Online sales increased 7.4 per cent to $86.6 million representing 11.2 per cent of group sales. Click and Collect made up 47.3 per cent of online sales, contributing $36.9 million during the quarter.
The Warehouse sales declined 2 per cent to $401.9 million while online sales increased 25.8 per cent in the quarter. Grocery was a ‘standout’ category especially pantry & chilled, health & wellbeing and petcare.
Warehouse Stationery recorded $67.4 million in sales which is a decline of 6.1 per cent. Online sales fell 14.2 per cent due to insufficient web traffic, poor back to school sales and stock availability issues.
Torpedo7 recorded $36.5 million in sales this quarter, growing 3.1 per cent. The brand’s online sales rose 9.1 per cent while click and collect sales grew 7.2 per cent in the quarter. However, store footfall dropped 12 per cent compared to the previous period.
According to the business, product supply was disrupted in the third quarter due to ongoing supply chain issues. Higher shipping costs coupled with team member absenteeism contributed to product availability gaps in store.
The group expects shipping constraints to ease by the fourth quarter next year.
CEO Nick Grayston said there will be an ‘unavoidable’ cost increases for some products due to rising costs, although the business will try and provide everyday low prices.
“While the cost of goods continues to increase, we’re holding or dropping prices where we can across essential grocery and pantry items like bread, milk, cereal and pasta as well as essentials to keep families warm such as children’s flannelette pyjamas and merino clothing,” he said.
