Business leaders discuss the year just gone and what will affect them in 2018. Today: Warehouse chief executive Nick Grayston.
What is 2018 looking like for your business?
We're looking forward to 2018, we've changed our business model in The Warehouse to follow what customers told us they wanted – amazing low prices, available every day. We're also working with new partners and have hired some very talented individuals to accelerate our investment in digital, with the focus on creating a customer-facing ecosystem that will help make Kiwi lives easier.
How is that different to 2017? How has the last year been for your business?
2017 marked the first major re-organisation of our business in recent years. It kicked off in January and has dominated the year. We've worked extensively with our team members, the board and external consultants to define the strategy that will enable us to transform our business from that of legacy retailer to a data-driven, customer-focused organisation. We set the fundamental change in motion in 2017, but 2018 will be all about execution of our strategy.
What are the issues affecting your industry in the next 12 months?
Industry disruption is increasing exponentially in pace. For us, Amazon has launched in earnest in Australasia to increase the competitive forces that already exist. Forty-five per cent of NZ e-commerce is done from beyond our borders and that pressure is set to continue. Alibaba and WeChat are already formidable players and in Zara and H&M, we have the best in class specialty apparel retailers starting to compete in physical locations. With increased visibility of price and the ability to compare value, literally in the palm of customer's hands, the game is up for retailers whose go-to offering is to inflate prices artificially to give the illusion of a "sale".
What is the biggest issue you would like the new Government to champion in 2018?
We want the playing field to be levelled to give Kiwi retailers a fair crack.
New Zealand is currently giving international retailers a free ride by allowing them to avoid paying GST on purchases under $400. Australia has resolved this issue and it's a relatively easy one for the government to fix. Right now about $250 million in lost tax revenue is being left on the table, which would help pay for the much-needed programmes the government is planning to help Kiwis live better lives. In addition, the absence of a level playing field is threatening Kiwi jobs in favour of those employed by foreign competitors overseas.
Do you get a break this summer? What's your favourite way to relax?
Retail is relentless but I'm hoping to get a few days of downtime in the New Year. We're so privileged to live in such a beautiful country and I love exploring with my family and getting out on the water, when I get a chance.
