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Lockdowns fuelled online boost for The Warehouse Group

The Warehouse Group says while extended Covid-related lockdowns impacted overall sales, online contributed 15.3 per cent of total revenue in the year to July.

The group owns and operates The Warehouse ‘red sheds’, Noel Leeming, Torpedo7, Warehouse Stationery, and The Market.

For the year to July 31, group sales fell 3.5 per cent to $3.3 billion while tax-paid profit declined 18.3 per cent to $89.3 million. Auckland stores remained closed for 23 per cent of the reporting period, or 84 days in total.

Online sales brought in $503.3 million, increasing by 39.8 per cent year on year. Across all brands, click and collect grew 54.9 per cent and accounted for 49 per cent of group sales.

The Warehouse division’s sales declined 4.3 per cent to $1.7 billion while online sales increased 60.5 per cent, predominantly driven by click and collect.

Warehouse Stationery recorded $249.7 million in sales declining 9.1 per cent. Online sales rose 20.8 per cent while click and collect fulfilment increased by 37.8 per cent.

Noel Leeming sales fell by 2.8 per cent to $1.1 billion, but that remained the division’s second-highest ever annual sales.

Torpedo7 recorded $171.5 million in sales for the year, growing 8.1 per cent. The brand also opened three new stores in the year and expanded its online presence.

The group’s online marketplace turned over $110 million in gross merchandise volume, with the average customer spend up by 14 per cent. The site now offers 4.2 million items from 6500 local and international brands and has more than 390,000 active customers.

Nick Grayston, CEO of The Warehouse Group, said the first half of this year was “one of the most disrupted periods” since the start of the pandemic.

“The first half was the most challenging with a sales decline of 4.3 per cent year on year. The second half saw disruptions starting to ease, supply chains and networks becoming easier to navigate and our customers returning to stores.”

Grayston added the strength of the retailer’s integrated retail ecosystem of brands, products and services helped weather these challenging conditions.

The business says it has made a “positive start” to FY23 and has taken necessary steps to overcome ongoing inconsistencies in container freight arrivals into New Zealand.

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