The Warehouse Group CEO Nick Grayston to step down, effective immediately

Warehouse Group chief executive Nick Grayston is stepping down, effective immediately. Photo / File

The Warehouse chief executive Nick Grayston is stepping down immediately with the company saying fresh energy was needed for a change in direction.

Chair Joan Withers said that since 2016, Grayston had led the company through a period of significant change in the retail industry.

She thanked him for his commitment and contribution.

“His focus on sustainability, adopting agile ways of working, navigating the challenges of Covid and initiating the significant and successful programme of critical infrastructure upgrades have been hallmarks of transformation of The Warehouse Group in the last five years,” she said.

“However, as we look to the future, we have agreed a change in direction is necessary for the company and that it needs fresh energy to execute.”

Independent director John Journee will take up the role of interim CEO on Monday, May 20, while the board looks for a new CEO.

The board had determined that, upon taking up his new role, Journee will cease to be an independent director but will continue as an executive director.

“John spent 15 years at The Warehouse across a range of roles, including as CEO of Noel Leeming, and has been on the TWG Board since 2013,” Withers said.

“His experience and familiarity with The Warehouse will be invaluable as we navigate this transition and begin our search for a new permanent CEO.”

Grayston said it had been a privilege to lead The Warehouse.

“Leading The Warehouse Group has been one of the most rewarding experiences of my career.

“While it is the right time for me to step aside, I have every confidence in the talented team at The Warehouse Group to drive the business forward and I wish them the very best.”

The discount retail chain, has struggled in recent years in the face of a general downturn, competition from online retail websites and some acquisitions that have not worked for the company.

In its latest market update, The Warehouse said the third-quarter group sales came to $695.5 million, down 9.2 per cent compared with the same period a year earlier.

The stock last traded at $1.20, having dropped by nearly 30 per cent over the past 12 months.

Its most recent financial result, released in March, showed the group made a $23.7m net loss in six months amid grim retail conditions and a poor performance from the now-discarded Torpedo7.

Torpedo7 was sold for just $1.00 after the company bought it for $55.2m.

In announcing results for the half-year to January 28, The Warehouse Group said it would simplify more to focus on core brands.

“It’s time to draw a line under TheMarket.com as a separate entity and shift our marketplace focus to The Warehouse,” the company said.

The company planned to shift its attention to the Group Marketplace on The Warehouse site and app.

Total group sales were $1.633 billion, down 4.9 per cent on a year earlier.

The Warehouse itself had sales of $965.6m, down 4.7 per cent on the 2023 first half.

Jamie Gray is an Auckland-based journalist, covering the financial markets and the primary sector. He joined the Herald in 2011.