New Zealand’s Warehouse Stationery has recorded its best-ever gross profit in the 2020 financial year despite disruptions due to the COVID-19 pandemic.

 

Warehouse Stationery achieved a small lift in sales overall and was able to grow gross margin by 50 basis points year-on-year, delivering a gross profit of NZ$114.4 million.

 

The division achieved full year sales of NZ$268.8, slightly down on the previous year. Retail operating profit, which includes a wage subsidy received as a result of COVID-19, was up 36 per cent. 

 

Warehouse Stationery’s online sales grew 25 per cent with ‘click and collect’ up 76 per cent. Mobile web-based sales increased 65 per cent year-on-year.

 

The division opened seven new store-within-a-store formats in the Warehouse group’s general merchandise outlets, taking the number of these to 17 (out of a total store network of 71).

 

The furniture category - the beneficiary of requirement of New Zealanders to work and study from home (WFH) – recorded sales increases of more than 20 per cent.

 

The art and craft category recorded strong growth, supported by the seasonal ‘Get NZ Creating’ campaigns and the relaunch of the Inspiration Station programme. Art and craft sales grew by 19.3 per cent on the previous year

 

In the year under review, an office products range featuring the Warehouse Stationery brand was launched. The retailer also expanded its te reo Mäori range of school supplies and introduced a line of recycled exercise books.