{"id":428725,"date":"2026-05-15T09:23:17","date_gmt":"2026-05-15T09:23:17","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/428725\/"},"modified":"2026-05-15T09:23:17","modified_gmt":"2026-05-15T09:23:17","slug":"the-warehouse-group-sales-dip-as-freight-costs-rise-and-shoppers-stay-home","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/428725\/","title":{"rendered":"The Warehouse Group sales dip as freight costs rise and shoppers stay home"},"content":{"rendered":"
\u201cCost discipline and working capital management remains our immediate priority while we continue the work to lift margin performance.\u201d<\/p>\n
The Warehouse Group’s chief executive Mark Stirton said the priority was to stay focused on what the business can control.<\/p>\n
Breaking it down by brand, The Warehouse sales fell 2.5% to $405.3m, with like-for-like same-store sales down 0.8% compared to last year.<\/p>\n
The Warehouse\u2019s year-to-date sales were $1.4 billion, up 1.4% on a like-for-like same-store sales basis, with sales growing particularly in the health and beauty, and apparel categories.<\/p>\n
Warehouse Stationery followed suit, with sales falling 2.9% to $57.1m, although like-for-like same-store sales were up 3.1%.<\/p>\n
Year-to-date sales for the business were $173.2m, up 1.7% on a like-for-like same-store sales basis.<\/p>\n
Noel Leeming was the lone positive performer, with sales lifting 0.7% to $236.6m, with like-for-like same-store sales growing by 1.1%.<\/p>\n
However, sales on a like-for-like same-store basis were down 0.7% to $778.9m for the year to date.<\/p>\n
Improved margin management, particularly in Warehouse Stationery and Noel Leeming, was partially offset by the decline in The Warehouse, resulting in group gross profit margin lifting 50 basis points to 31.9%.<\/p>\n
Group gross profit margin lifted 10 basis points to 32.2% for the year to date compared to the same period last year.<\/p>\n
Foot traffic declined 1.8% for the group during the quarter, while average customer basket size increased 2.7%.<\/p>\n
Group online sales increased 5.4%, representing 6.8% of total sales, up from 6.4% in the same period last year, driven by particularly strong online growth for Noel Leeming.<\/p>\n
Looking ahead, the group said trading conditions were expected to remain challenging, with inflationary pressures, global instability and an uncertain domestic economy continuing to affect consumers and businesses.<\/p>\n
The group particularly acknowledged the rising cost of international and domestic freight, and said it was managing the pressures through disciplined retail execution and a continued focus on strengthening the fundamentals of the business.<\/p>\n
\u201cWe\u2019re doing everything we can to balance providing everyday value for customers while managing the impact of higher costs on our business.<\/p>\n
\u201cIn this environment, our priority is to stay focused on what we can control.\u201d<\/p>\n
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.<\/p>\n