The Warehouse says it has excellent products for the colder months. Photo / Michel Bradley
The Warehouse says it has excellent products for the colder months. Photo / Michel Bradley
KEY POINTS:
The Warehouse Group is pinning its hopes on the winter season - when it arrives - reviving some of its flagging sales fortunes.
New Zealand's largest listed retailer yesterday announced a 4.3 per cent decline in sales for the third quarter ending April 27, dropping from $412.3 millionlast year to $394.6 million.
The result followed Briscoe Group's announcement this week of a 9.7 per cent drop in quarterly sales and a forecast of a potential halving of first half profit as a retailing malaise sets in.
Warehouse chief executive Ian Morrice said consumer demand has softened since the end of January, with a marked decline in demand for high ticket items.
Mild weather has led the autumn/winter season to a slow start.
"We remain confident however that we have a strong seasonal offer in apparel and winter home products for when the weather cools."
The group - the subject of competing takeover bids by supermarket players Foodstuffs and Woolworths - had warned on March 14 that slowing household spending and increased competition could reduce full year profit by as much as 19 per cent to $94 million.
The Red Sheds' third quarter sales were $337.6 million, down 3.5 per cent. Quarterly same store sales were down 3.5 per cent, a fall of 0.9 per cent for the year to date.
The Warehouse Stationery was harder hit, with third quarter sales down 8.5 per cent to $57 million. Same store sales for the quarter was down 7.4 per cent, and 4 per cent for the year to date.
