Source: Radio New Zealand
Total sales at retail stores the ‘Red Sheds’, Stationery and Noel Leeming were flat at $700.8 million. SUPPLIED
The Warehouse Group’s third-quarter retail sales were down 1.4 percent on the year earlier, amid ongoing tough economic conditions.
However, on a year-earlier, like-for-like basis, total sales at retail stores the ‘Red Sheds’, Stationery and Noel Leeming were flat at $700.8 million for the period ended 4 May.
Group gross profit margin rose 50 basis points in the third quarter over the year earlier, and were up 10 basis points on the year to date, with growth in Stationery and Noel Leeming partially offset by a drop in Red Sheds.
Third-quarter sales by brand:
- The Warehouse Red Sheds fell 2.5 percent to $405.3m, down 0.8 percent on same store sales.
- Warehouse Stationery were down 2.9 percent to $57.1m, up 3.1 percent on same store sales.
- Noel Leeming sales up 0.7 percent to $236.6m, up 1.1 percent on same store sales
Group chief executive Mark Stirton said it was a stable result in an increasingly tough climate.
“As fuel prices rose, we saw customers become more conscious of travel, making fewer shopping trips but buying more when they visited our stores,” Stirton said.
Group foot traffic declined 1.8 percent during the quarter, though average customer basket size increased 2.7 percent.
Group online sales rose 5.4 percent, representing 6.8 percent of total 3qtr sales – an increase from 6.4 percent the year earlier. Noel Leeming stores saw particularly strong online growth.
Stirton said Noel Leeming will return to Auckland’s city centre this summer with the opening of a new flagship store at 192 Queen Street, after its previous Queen Street store closed in 2021.
Noel Leeming will return to Auckland’s city centre this summer. Screenshot / Google Maps
Noel Leeming chief executive Jason Bell said the new store reflected the growing importance of experience-led retail.
“We’re bringing Noel Leeming back to the city centre with a store designed to offer something different for customers,” he said.
“Alongside the latest technology, the Queen Street store will feature a more modern design and interactive product demos, gaming events and expert service, creating an exciting experience for customers.”
The store’s opening was expected to coincide with the launch of the City Rail Link and Te Waihorotiu station, expected this year.
Outlook
Stirton said trading conditions were expected to remain challenging, with inflationary pressures, global instability and an uncertain domestic economy continuing to affect consumers and businesses.
“We’re doing everything we can to balance providing everyday value for customers while managing the impact of higher costs on our business,” he said.
“In this environment, our priority is to stay focused on what we can control.”
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand