Rain affects Warehouse, Briscoes figures

By IRENE CHAPPLE

Major retailers The Warehouse and Briscoe Group produced increases in sales figures on Friday after a quarter hampered by rain.

Total sales for The Warehouse increased 12.1 per cent to $483 million for the three months to November 2, compared to the same time last year.

There was nothing hugely surprising in the result: New Zealand was going well, Australia still struggling, and shares stayed steady to close on $5.68.

In New Zealand The Warehouse recorded a 9.9 per cent increase in overall sales to $311 million and a 7.2 per cent increase in same-store sales compared to the previous year.

That was despite a wet September slowing seasonal merchandise. The figures are promising as commentators have previously suggested The Warehouse's New Zealand market was becoming saturated.

The Warehouse's so-called Blue Sheds, its stationery arm, was also humming along nicely.

While it is less than 10 per cent of the total business in sales, Warehouse Stationery sales were up 23.5 per cent for the quarter to $41.5 million and, excluding sales on its business-to-business operation, same-store sales were up 11 per cent.

The Warehouse's Australian figures were not so positive.

Sales increased 16.4 per cent to A$115 million; same-store sales rose only 1.1 per cent and margins contracted.

The Australian arm has been troublesome for the company since it crossed the Tasman three years ago.

Bad buying decisions and aggressive competition were blamed for two profit downgrades and are also rumoured to be behind the resignation of former chief executive Greg Muir.

Company founder and acting head Stephen Tindall said the Australian figures were very disappointing but he pleaded patience.

The company expected the Australian arm to contribute positive earnings by 2005.

Tindall said that the arrival this week of its chief executive, Ian Tsicalas, would have a positive impact.

Briscoe Group was punished by investors after producing a sales increase of 6.22 per cent to $68.2 million for the three months to October 31 compared to the same quarter last year.

Same-store sales were ahead just 0.49 per cent on last year's quarter and margins contracted.

Briscoes Homeware sales increased 7.77 per cent to $45.9 million but Rebel Sport sales were up just 3.18 per cent to $22.3 million.

Managing director Rod Duke said the results were lower than anticipated and that the issue had been with Rebel Sport.

The rain through September - and lack of rain in other months - had thrown sales and stock had to be offloaded through discounting.

The company said the "competitive retail environment" was expected to continue through its financial year.

Briscoe Group's share price dropped 5.23 per cent to close at $1.80.