The Warehouse Group is warning there could be delays of up to eight weeks for some of its stock as it navigates disruption in China following the coronavirus outbreak.
The NZX-listed retailer today confirmed to the Herald three of its chain retailers were facing delays in sourcing a small amount of stock from China, following a trading update to the stock exchange on Friday, which said it was monitoring the situation.
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The company said it was anticipating some of its shipments for its Warehouse and Warehouse Stationery chains from China could be delayed by up to eight weeks. These shipments include art and craft supplies and some clothing.
It does not expect its winter stock to be affected, except for some of its knitwear.
Warehouse Group chief sourcing officer Tania Benyon said the situation in China following the outbreak was "changing daily" and the company continued to monitor the impacts of Covid-19 on its supply chain.
Benyon said the group had "significant stock on hand" and that customers were "unlikely to notice any change" to its stock well into next year.
"At this stage we are planning for some shipments from China to be up to eight weeks delayed. Most of the winter stock for The Warehouse has already been shipped, although some of our knitwear may be delayed."
Benyon said the group had factories and suppliers based outside of China, including in Bangladesh and India, which also manufactured its goods and so as a result it did not expect its business to be significantly disrupted.
The company said it was also expecting delays in stock for its electronics chain Noel Leeming, although it did not know how long the wait could be.
"We have sufficient stock of most goods right now, with only a few lines out of stock," Jason Bell, Noel Leeming's merchandise manager, said on Monday.
He did not specify what product lines were currently out of stock.
"We are expecting that there could be delays from April but the extent of that is unclear at this stage."
On Friday, the company, which operates more than 250 retail stores throughout the country, said is was "actively monitoring" the coronavirus situation and its impact on manufactured products and the group's supply chain.
It said it did not expect the outbreak to have a material impact on its FY20 financial results as it was "well positioned with its directly sourced inventory and with branded suppliers".
The company said it had mitigation plans which would be assessed and implemented as the situation developed.
The Warehouse Group has a sorting office in Shanghai, China. On Friday it said staff working in that office were expected to return to work this week.
It has placed a limit on domestic travel in China, it said.
Another update on the situation would be given alongside its results on March 17.