Despite a financial year unaffected by COVID-19 lockdowns, New Zealand office and school supplies retailer Warehouse Stationery has reported a slight dip in FY2023 revenue.

In the 12 months to 30 July 2023, Warehouse Stationery’s sales were NZ$248.6 million (US$147 million), a year-on-year decline of 0.4 per cent. While there was growth of 1.7 per cent in the first half of the year, there was a 2.5 per cent drop in H2. 

 

The office furniture and print and consumables categories drove the sales weakness during the course of FY2023. The company called out “changing printer technology”, possibly a reference to subscription models and/or large-tank inkjet devices.

 

Post-pandemic, online sales slid by more than 35 per cent to NZ$22.1 million and represented 8.9 per cent of the total – versus 13.7 per cent in the preceding 12 months. It was a similar story for click-and-collect, which fell by 52.9 per cent to account for around 19 per cent of online sales. In FY2022, click-and-collect had made up almost 26 per cent of online revenue.

 

At the same time, in-store transactions grew by nine per cent as customers returned. The only problem was, they spent less, with average basket size 9.6 per cent lower than a year earlier.

 

Warehouse Stationery’s gross profit for the year was NZ$116.6 million, down 1.6 per cent. This was driven by lower sales volumes and rebates, increased clearance activity in Q4 and a change in the product mix, with a smaller proportion of higher-margin product sales in categories such as furniture. One bright spot was the Print & Copy Centre unit, which achieved its best sales year in FY23.

 

Operating profit was essentially flat at NZ$23 million as the company focused on reducing labour in stores, lease costs and advertising. Forty out of 66 outlets are now a store-within-a-store (SWAS) format in partnership with sister retailer The Warehouse. Five SWAS integrations were implemented during the financial year, while two other locations – including the one in Auckland’s central business district – were closed.

 

For more on this and other global news stories, go to Weak top line at Warehouse Stationery | OPI - Office Products International