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The Warehouse moves into discount big-brand retail with Red Rack

  • News
  • October 10, 2018
  • The Register team
The Warehouse moves into discount big-brand retail with Red Rack

Most Kiwi shoppers associate The Warehouse with its own-brand labels like Garage and Active Intent, but that’s going to change with the launch of its new off-price initiative for branded imports, Red Rack. 

Red Rack has now launched in 47 Red Sheds nationwide, offering big-name street, sports, surf and fashion at prices 20-60 percent lower than current New Zealand market prices. The selection will cover men’s, women’s, kids’ and footwear categories.

Among the brands included are: Nike, Adidas, Puma, Superdry, Fenty by Rihanna, Ben Sherman, Billabong and Paul Frank.

Nick Grayston, chief executive of The Warehouse Group says: “Some Kiwis may already be familiar with off-price retailing with the likes of TK Maxx, Ross Dress for Less and Nordstrom Rack in the US and similar outlets in the UK. Our mantra is to bring Kiwis low prices, every day and to make the desirable affordable. That’s what Red Rack will do.

“One of the best things about Red Rack is seeing the reaction of customers when they find that cool pair of shoes or t-shirt at an amazing price. We can provide a ‘treasure hunt’ experience because stock is replenished weekly and new shipments arrive constantly.” 

The concept was trialled over a test period across seven stores, resulting in “significantly” greater sales over The Warehouse’s traditional branded import offering.

“There’s definitely an appetite out there for big brand labels at prices way below other department stores,” said Grayston.

Grayston says off-price retailing is growing internationally, with the market expected to grow globally to $33 billion USD by 2021, and around two-thirds of shoppers in the US shopping for clothes at off-price retailers. He says The Warehouse is also expecting other benefits from Red Rack, with foot traffic and cross-brand private label product sales expected to increase as a result of the innovation.

Red Rack is currently available in the following stores:
 

Auckland Airport, Albany, Belfast, Bell Block, Botany Downs, Eastgate, Fraser Cove, Gisborne, Greymouth, Hamilton, Hastings, Hillcrest, Hornby, Invercargill, Lincoln Rd, Lower Hutt, Lyall Bay, Masterton, Manukau, Napier, Nelson, New Plymouth, Northlands, Pakuranga, Palmerston North, Paraparaumu, Petone, Porirua, Pukekohe, Queenstown, Rangiora, Riccarton, Rolleston, Rotorua, Royal Oak, Silverdale, South Dunedin, Sylvia Park, Takanini, Tauranga Crossing, Te Rapa, Timaru, Waipapa, Wanganui, Westcity, Westgate, and Whangarei.

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