Warehouse pinpoints areas for growth

The Warehouse is banking on expanding product areas where it now has a relatively small market share.

At the annual meeting yesterday, managing director Ian Morrice identified several areas offering opportunities for growth, including health and beauty, consumer electronics, jewellery, shoes and camping and fishing.

The Warehouse had included jewellery centres in all stores for some years now, he said, but in the 17 largest, soon to be rebranded Extra stores, it would be greatly increasing the range.

The expansion of the jewellery business was a good example of how the company's strategy was developing for increasing its share of markets where it was now a relatively small player.

Morrice expected online sales would grow reasonably rapidly in the next three to five years, and in future saw 10 per cent of sales potentially coming from overseas.

For the year to August net profit excluding unusual items was up 5.3 per cent from the previous year to $85.2 million. Overall net profit fell 15.4 per cent to $76.8 million, affected by a $7.4 million post tax charge.

- NZPA