Expansion fuels Warehouse sales

By Phil Boeyen, ShareChat Business News Editor

Tuesday 5th February 2002

The strength of New Zealand and Australia's retail sectors is evident in the latest sales figures from The Warehouse (NZSE: WHS).

Sales at The Warehouse Group increased 12.9% in the 3 months ended January compared with the same period previously, with both Warehouse Stationery and The Warehouse Australia recording rises of more than 20%.

CEO, Greg Muir, says the group enjoyed excellent sales in December and the performance continued through January,

Sales at its Red Sheds in New Zealand improved 10% for the quarter with same-store sales at 7.4%.

"Despite poor early summer weather affecting some seasonal lines before Christmas, the Red Sheds performed exceptionally well, particularly a week either side of Christmas day - highlighting the brand's power in peak shopping periods", says Mr Muir.

Stationery store sales leapt 36.5% with same-store sales recording an impressive 27.7% increase. Mr Muir says the chain is now the clear leader in the retail stationery market and had outstanding performance in the late January back-to-school period, where sales growth was significantly ahead of the quarter average.

Across the Tasman the group's Australian business rose 21.7% but same-store sales rose just 3.5%. The company says the new format stores are continuing to trade ahead of expectations and the new store roll-out programme has very positive sales momentum.

Seven new stores were opened during the quarter and one store was closed. A further seven new stores will be opened in the next 6 months.

"We are pleased with how the well the Australian business performed in the last quarter," says Mr Muir.

The company is optimistic that the sales momentum will continue in the second half, with lower interest rates and fuel costs giving consumers more confidence to spend.

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