The Warehouse Group’s retail sales for the third quarter fell 1.4% compared with a year earlier, as challenging economic conditions persisted.
However, on a year-earlier, like-for-like basis, total sales across The Warehouse Group’s retail stores — including The Red Sheds, Stationery and Noel Leeming — were flat at $700.8 million for the period ended 4 May.
Group gross profit margin increased by 50 basis points in the third quarter compared with a year earlier and was up 10 basis points year to date, with gains in Stationery and Noel Leeming partly offset by a decline in the Red Sheds.
Third-quarter sales by brand showed mixed performance, with The Warehouse Red Sheds falling 2.5% to $405.3 million, alongside a 0.8% decline in same-store sales. Warehouse Stationery recorded a 2.9% drop to $57.1 million, despite same-store sales rising 3.1%. In contrast, Noel Leeming posted a 0.7% increase to $236.6 million, with same-store sales up 1.1%.
“As fuel prices rose, we saw customers become more conscious of travel, making fewer shopping trips but buying more when they visited our stores,” group chief executive Mark Stirton said.
Group foot traffic declined 1.8% over the quarter, while average customer basket size rose 2.7%.
Group online sales rose 5.4%, accounting for 6.8% of total third-quarter sales, up from 6.4% a year earlier, with Noel Leeming stores recording particularly strong online growth.
Stirton said Noel Leeming will return to Auckland city centre this summer with a new flagship store at 192 Queen Street. It previously closed its Queen Street location in 2021.