Kiwi group being ‘reshaped’ as sales fall.

 

New Zealand’s The Warehouse Group says its annual revenue will be down six to seven per cent this year because of “increasingly subdued consumer demand”.

 

The operator of The Warehouse, Warehouse Stationery and Torpedo7 said trading was “challenging”, compounded by a mild winter, resulting in lower than expected fourth quarter sales.

 

The forecast follows a major restructuring of the retail group, which includes The Warehouse chain (Red Sheds), Warehouse Stationery and Noel Leeming.

 

Interim chief executive John Journee said the business would be "reshaped" around its three core brands, along with new leadership.

 

He said the group's management has been shaken up with new roles created to look after the combined ‘Red Sheds’ and Warehouse Stationery operations, and dedicated leadership for the Noel Leeming appliance and electronics business.

 

The Warehouse group has been through tough time as it reported falling sales and margins, a large loss on asset writedowns, the sale of its Torpedo 7 business for NZ$1 and the closure of its online Marketplace.

 

That resulted in the departure of chief executive Nick Grayston who had been brought in to turnaround the group's performance in 2016.