The Warehouse Group‘s sales declined in the fiscal first quarter amid lower same store foot traffic and fewer stores.

Group sales fell 2.5 per cent year over year to $668 million in the three months ended October 27, with same-store sales decreasing 2 per cent.

By segment, The Warehouse’s sales dropped 2 per cent to $386.3 million, while Warehouse Stationery declined 6.8 per cent to $50.9 million, mainly due to a muted small-medium business environment.

Noel Leeming’s retail sales went down 2.1 per cent to $229.1 million, with the commercial division’s strong performance offsetting persistent soft demand for discretionary goods and helping to defend its market position.

The group’s online sales plummeted 12.9 per cent and accounted for 6.3 per cent of the company’s sales as it rationalises the product offering from third-party vendors.

Moreover, same-store foot traffic slid 0.8 per cent, with customers shopping more in essential categories and clearance sales.

The group ended the period with 218 stores, seven fewer than the same time. ayear ago.

“Our transition is underway, with our focus firmly on trading each of our core brands and refreshing key product ranges at better value,” said John Journee, The Warehouse Group interim CEO.

“We remain cautious as we look ahead to Christmas and expect the trading environment to remain tight and highly competitive.”