The Warehouse Group has reported a sales decline in the third quarter, as soaring fuel prices placed pressure on consumer confidence.

Sales for the 13 weeks ended May 3 were down 1.4 per cent year-on-year to $700.8 million, with same-store sales remaining flat. Year-to-date sales were up 0.7 per cent on a like-for-like basis.

Management said the group delivered a stable trading result despite growing pressure on consumer confidence throughout the quarter.

“As fuel prices rose, we saw customers become more conscious of travel, making fewer shopping trips but buying more when they visited our stores,” said group CEO Mark Stirton.

Group foot traffic declined 1.8 per cent during the period, while average customer basket size increased 2.7 per cent.

Sales from The Warehouse banner slid 2.5 per cent, and Warehouse Stationery sales were down 2.9 per cent. Meanwhile, Noel Leeming sales edged up 0.7 per cent.

On a like-for-like basis, sales were down 0.8 per cent at The Warehouse, up 3.1 per cent at Warehouse Stationery, and up 1.1 per cent at Noel Leeming.

Group gross profit margin was up 50 basis points to 31.9 per cent, with improved margin management at Warehouse Stationery and Noel Leeming partially offset by a decline in The Warehouse.

Looking ahead, The Warehouse expects trading conditions to remain challenging, with inflationary pressures, global instability and an uncertain domestic economy continuing to affect consumers and businesses.

The group is seeing higher costs, particularly across international and domestic freight, and plans to manage these pressures through disciplined retail execution.

“We’re doing everything we can to balance providing everyday value for customers while managing the impact of higher costs on our business,” said Stirton. “In this environment, our priority is to stay focused on what we can control.”