Warehouse ramps up stationery expansion

By Phil Boeyen, ShareChat Business News Editor

Friday 7th September 2001

The Warehouse (NZSE: WHS) has announced a new venture to nab a portion of the lucrative business-to-business stationery market.

The retail giant, which has had considerable success with its Warehouse Stationery brand of stores, will shortly launch a new B2B stationery business targeted at commercial and small to medium size enterprises.

"This sector spends $600 to $700 million a year on stationery and related office supplies and Warehouse Stationery does not currently compete in this sector," the company says.

The new venture will use multiple channels, such as internet, call centre and sales representatives, with orders filled at its distribution centre in Wiri.

The business is expected to record negative earnings before interest and tax for the first two years of operation.

Warehouse Stationery sales grew 48% to $93.5 million in the year ended July, with nine new stores opened around the country.

The stores have been showing strong same-store growth for some time and have helped the company move into the higher-priced - though lower margin - computer and business machine market, where it has said it wants to further expand its product offering.

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