Postie Plus Group sales tapered off in May and June after a surge in the first four months of the year, and the clothing retailer is predicting annual sales growth of 4.5%.
The Christchurch-based clothing retailer said the market slowdown of the past couple of months impacted on its sales growth, which it now forecasts to be about $115.3 million in the year ended August 1, compared to $110.4 million of actual sales a year earlier. Needing almost $30 million in the last quarter to meet its target, Postie Plus expects strong sales in July from its planned winter promotion.
According to government data, households have been reluctant to resume their spendthrift ways this year, preferring to focus on paying down debt, with private consumption up 0.2% in the first three months of the year. Consumer confidence dimmed last month, according to ANZ New Zealand and Westpac surveys.
Postie Plus shares were unchanged at 32 cents in trading today and have slumped 20% this year.