The Warehouse Group has released its latest retail sales for the first quarter ending October 29. The group reports that sales are down 1.7 percent ($645 million) from the same quarter in 2016.
The groups transition to its new everyday low-price (EDLP) strategy continued during the quarter, while the groups 1.7 percent drop of retail sales was put down to large internal operational changes.
Nick Grayston, group CEO, said the drop was expected yet still disappointing as both internal and external factors played against gross margins.
“The reduction in first quarter Group sales was anticipated under the EDLP strategy in The Warehouse which continues to show encouraging results at gross margin level. However, we were disappointed with the performance in Warehouse Stationery as it was partly driven by internal operating changes. Our attention is now on the critical second quarter trading performance, while continuing to advance our retail transformation strategy with urgency.”
The Warehouse (Red Sheds) Same Store Sales down 4.0 percent. This decrease was an anticipated event caused by the new switch to everyday low-price strategy which was implemented in October.
Warehouse Stationery (Blue Sheds) Same Store Sales down 8.2 percent. This decreased as credited to stock availability becoming limited as it completed the systems integration between The Warehouse and Warehouse Stationery.
Noel Leeming Same Store Sales up 5.1 percent. The $195.1 million growth in revenue from the previous year was put down to continued focus on leading the technology segment in customer service through passionate experts in store.
Torpedo7 Group Same Store Sales up 2.0 percent. Torpedo7 had a range of shakings including a pop-up Westgate store and store relocations. Yet the outdoor range stayed strong even with a late spring, seeing an increase of $39.2 million.
It is fair to note that although the groups retail sales fell 1.7 percent, online grew by 9.2 percent, up $46.6 million. Online sales as a percentage of total Group sales has increased to 7.2 percent with all brands experiencing growth.