Deal threat to Warehouse

A Woolworths buy of Progressive may hit The Warehouse's grocery ambitions.

One fund manager, who did not want to be named, said it would be much harder for a third operator to break into a market which included Woolworths. "If they [The Warehouse] are unsuccessful in getting the NZ assets of Foodland then I wonder whether they've got too much on their plate even to go down that path," he said.

Woolworths could also expand its non-grocery offering.

"They have plenty of cash, they're big boys - they could make life somewhat difficult for The Warehouse if they chose too."