Warehouse plans to phase out its one-stop outlets

By Vaimoana Tapaleao

The Warehouse's one-stop shop - The Warehouse Extra - will be no more.

The Extra supermarket-style outlets, linked to stores in Te Rapa, Whangarei and Auckland's Sylvia Park, are gradually being phased out because they have not met expectations, chief executive Ian Morrice said yesterday.

"We were testing the supermarket industry on the basis if we got more people to come in, we were then getting incremental growth of general merchandise. But we didn't achieve enough to give back into the investment. That, essentially, is what the decision is about."

The move to phase out the Extra stores comes after an Appeal Court decision saw the Commerce Commission successfully block big chains Woolworths and Foodstuffs from making takeover bids.

However, both are now expected to relaunch those bids.

Outside Auckland's Sylvia Park store, the majority of customers were happy with the store, acknowledging the benefits of having a one-stop shop.

Tracey Short, of Pakuranga, said: "The fact that you can come out to do your shopping at The Warehouse and then get the groceries - it's handy to do your shopping here."

Another customer, Mr Martin, said he was a regular at the shopping centre because of its convenience.

"The prices in there are not exactly excellent as far as food goes, but it's convenient."

He acknowledged that the closing of the store would not be a major loss.

"I'm not surprised that it's closing, because it's not usually busy in the food section."

Mangere Budgeting Services chief executive Darryl Evans said the rising costs of everyday items would mean that the closure of the stores - particularly the Sylvia Park outlet - would not have a huge impact.

"You've got to drive out there so there's another expense - to get out there. Families are struggling to pay these essential items such as food, the power, the rent."

"Nobody has a budget for the food right now. It used to be families were spending $150 on food but now they're spending what's left over after paying other expenses - for some it's $50 and for others it's $20 - so families are struggling," he said.

"People actually spend more because they're buying things from The Warehouse itself and their groceries - are costing them more," he said.

"The number one thing is if you go shopping, stick to your budget [and] stick to your shopping lists."

- NZ Herald

© Copyright 2014, APN New Zealand Limited

Assembled by: (static) on production bpcf01 at 19 Dec 2014 17:14:15 Processing Time: 558ms