Stationery sales lead Warehouse rise

By Phil Boeyen, ShareChat Business News Editor

Wednesday 7th November 2001

The Warehouse (NZSE: WHS) has reported a first-quarter lift in sales and says trading patterns are back to normal following a decline in the wake of the September 11 US attacks.

Sales for the three months ended October have risen 9% compared to the same period last year, to $385.1 million.

The group's Warehouse Stationery chain recorded a strong increase in same-store sales, up 25.4% over last year. Total stationery sales were $27.1 million for the period, 41% higher than last year.

However same-store sales at The Warehouse New Zealand recorded a much less bullish rise, increasing just 1.9% compared to the first quarter last year, with total sales up 8.5% to $255 million.

"The Warehouse New Zealand had delayed some store replacements pending discussions with Kmart NZ to acquire sites. With these discussions now at an end, The Warehouse New Zealand will continue its active property programme over the next five years to add new, extend or replace stores to lay the foundation for sustained growth," the company says.

In Australia the company improved sales by 12.1% over last year to A$84.5 million although in Australian dollar terms, same store sales fell by 4.4%.

The Warehouse says same-store sales are comparatively weaker because of strong trading last year in the lead-up to, and during, the 2000 Olympic Games.

Seven new large format stores are slated for opening in Australia before the end of the year, four in new locations and three replacement stores.

The company says sales for the group were negatively affected in the days following the September 11th attacks in New York and Washington but have largely reverted to normal trading patterns since then.

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