The Warehouse Group has told investors to expect a different strategy in its ongoing turnaround, with new profit targets confirmed.

The change comes shortly after the NZX-listed retailer returned from its loss-making financial performance to an end-of-year profit of $11.2 million in fiscal 2026. Now, the group wants to reach $100 million in operating profit in the next three-to-five years.

“We welcome around 1.7 million customer visits to our three iconic retail brands every week, and we have a national store and distribution network that is enviable,” said group CEO Mark Stirton. 

“Over time, the business lost sight of what customers wanted from us and, as a result, has not performed to its potential.”

Stirton claimed that the new strategy is “grounded in knowing our customers better”. It includes lower-cost supply chains, reducing aged stock and markdowns, and responding faster to customer demand. 

The Warehouse Group also plans to take a more disciplined approach to capital allocation across its network.

“We have a credible and realistic pathway to achieving our target of $100 million in operating profit within three to five years, which does not rely on any single initiative,” Stirton added. “We will first improve our existing business, then regain market share while pursuing growth through new stores and new profit streams.”

“Importantly, much of what we need to execute is within our control and does not rely primarily on near-term economic recovery.”