By SIMON HENDERY
The Warehouse blames tough economic conditions and its own expansion for a drop in sales growth.
Unaudited quarterly figures released yesterday show the retail giant's same-store sales at its big red barns were up 4.4 per cent for the three months to October.
This compared with growth of 15 per cent for the same period last year, and 20 per cent the year before.
The Warehouse said the "generally difficult economic environment" and its "aggressive roll-out" of new stores affected sales growth.
Overall, sales were up 11 per cent, compared with an increase of 0.7 per cent in department store sales reported by Statistics New Zealand for the roughly comparable September quarter.
Five new barns were opened during the quarter, taking the total nationwide to 72, and these had a temporary impact on sales at neighbouring stores.
The company plans to open three more stores this month - at Auckland Airport, Whangaparaoa, and Hillcrest, in Hamilton.
Analysts said the fall in same-store sales growth was not surprising in a "soggy" economy where retail sector sales were generally soft.
"Given higher fuel prices and the macro environment, you weren't going to get a big number," saidanalyst Gary Baker, of ABMAmro.
Karen Wilson, of Ord Minnett, said The Warehouse's sales growth was in line with expectations.
"The company is steering the market not to expect anything like double-digit same-store sales growth for the New Zealand formats.
"It's now a lot more hooked into what's happening in terms of the economy," she said.
Overall sales for the quarter including turnover at the newly acquired Clint's Crazy Bargain stores and Silly Solly's in Australia were $353 million, up 16 per cent on the same period last year.
Sales growth at Warehouse Stationery stores was strong, with same-store sales up 24 per cent.
Four more stationery stores were opened during the three months, taking the total to 28.
The Warehouse shares fell 4c after the sales figures were released yesterday.
But they firmed in late trading to close unchanged at 620c.
AdvertisementAdvertise with NZME.
Latest from Business
US growth slowed sharply last quarter
Businesses cutting back, surge in imports curtail US GDP growth.