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Current as of 27/05/16 07:39PM NZST
The Business Herald’s markets and banking reporter.

Red Sheds remain central to future of Warehouse Group

'The Red Sheds strategy will continue', says Mark Powell. Photo / Dexter Murray
'The Red Sheds strategy will continue', says Mark Powell. Photo / Dexter Murray

Acquisitions have radically transformed The Warehouse Group in the past six months, but there is no danger of the country's largest listed retailer losing focus on its core Red Sheds business, says chief executive Mark Powell.

The company yesterday announced it will pay up to $33 million for a 51 per cent stake in Hamilton-based online sports gear retailer Torpedo7, which also operates the 1-day daily deal and Urban Daddy clothing and shoe websites here and in Australia.

The acquisition follows its $65 million purchase of electronics retailer Noel Leeming and its buyout of import business Insight Traders.

But Powell said the Red Sheds, which are undergoing a $130 million revamp, remained central to the company's focus.

"The Red Sheds strategy will continue ... we're going to refit 24 stores this year and we've got lots of exciting things happening in product areas."

Powell said Torpedo7, which will be kept as a distinct business under its existing management team, would be a valuable addition to the group.

No financial figures for Torpedo7 were released yesterday, but founder Luke Howard-Willis told the Herald last year that the business had revenue of close to $100 million in 2011.

Chris Byrne of Craigs Investment Partners said The Warehouse should be able to add value to the online retailer through its supply chain, distribution skills and warehousing.

Shares closed down yesterday 2c at $3.40.

- NZ Herald

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