Warehouse sales momentum slows

By Phil Boeyen, ShareChat Business News Editor

Friday 4th August 2000

Warehouse quarterly sales to the end of July have risen 10.2% but the company says the rate of increase is slowing.

July quarter sales were $239.3 million - $22.2 million higher than the same period last year.

This compares with the April quarter when sales increased 17% over the same period last year.

Same-store sales for The Warehouse chain increased 4.7% for the July quarter, again considerably lower than the April quarter when same store sales increased by just over 12%. The news was better in the stationery department, where same-store sales at Warehouse Stationery increased 26.4% compared with last year.

Warehouse MD Stephen Tindall says the slowdown in sales growth is in line with the slowdown in the domestic economy, but points out that the figure still compares favourably with the overall retail sector where total NZ retail sales growth was only 0.3% in April and 0.8% in May.

The company says the relative strength of the export sector appears to be helping sales in non-metropolitan stores, which are doing better than their metro cousins.

The Warehouse expects to add a further 14% - or 35,000 square metres - of retail selling space by this Christmas.

Sales for the twelve months to the end of July were $1,072 million, which is 15.3% above last year's $929.9million sales result achieved for last year.

The company is due to report its full year result to the end of July in the first week of September

The result will not include any details from the company's Australian acquisitions - Clint's Crazy Bargains and Silly Solly's - but sales figures from those company's will be part of the October quarter announcement.

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