Woolworths declines to comment on Warehouse plans

SYDNEY - Grocery giant Woolworths Ltd has declined to comment on the reason it took a 10 per cent stake in New Zealand discount variety chain, The Warehouse Group.

Asked for a comment on the rationale and plans behind the stake, Woolworths chief executive Michael Luscombe said today: "Our only comment at this stage is that we have a 10 per cent stake in a really good New Zealand retailing company.

"And we've got no further comment to make at this stage."

Woolworths bought the stake in the New Zealand general merchandise retailer last month for more than A$180 million.

The Warehouse is majority-owned by its founder, chief executive Stephen Tindall.

Woolworths' main New Zealand rival Foodstuffs also has a 10 per cent holding in The Warehouse Group.

- AAP