Leading NZ retail group seeks ‘fresh energy’.

 

New Zealand office and school supplies retailer Warehouse Stationery has reported another drop in sales as parent company parts company with its CEO.

 

For the 13 weeks ended 28 April 2024, Warehouse Stationery’s sales were NZ$60.8 million (US$37 million), a year-on-year decline of 7.5 per cent. 

 

Year-to-date, revenue is down 5.8 per cent to NZ$178.7 million.

 

There was continued growth in the print and copy service offering, while most other categories – including print and consumables, and office furniture – saw softening demand. 

 

Warehouse CEO steps down

 

Meantime, it was announced last week that The Warehouse group chief executive Nick Grayston (pictured) is stepping down immediately with the company saying “fresh energy” was needed for a change in direction.

 

Warehouse Group chairperson Joan Withers said that since 2016, Grayston had led the company through a period of significant change in the retail industry.

 

“However, as we look to the future, we have agreed a change in direction is necessary for the company and that it needs fresh energy to execute,” she said.

 

In its latest market update, parent company The Warehouse Group said the third-quarter group sales came to NZ$695.5 million, down 9.2 per cent compared with the same period a year earlier.

 

The stock last traded at $1.20, having dropped by nearly 30 per cent over the past 12 months.

 

Its most recent financial result, released in March, showed the group made a NZ$23.7m net loss in six months amid grim retail conditions and a poor performance from the now-discarded Torpedo7.

 

Torpedo7 was sold for just $1.00 after the company bought it for $55.2m.