The Warehouse Group, New Zealand's biggest listed retailer, says its new "click and collect" service, introduced two weeks ago, is already accounting for 12 per cent of total online sales at its Red Sheds stores.
The concept allows customers to purchase products online and pick them up in a physical store.
The Warehouse Group's chief executive, Mark Powell, said he had initially been "dubious" about how popular click and collect would be, but his doubts had been unfounded.
"The market's there," he said. "People want the service."
Currently, click and collect is only available at The Warehouse stores, but Powell said the service would be extended to Warehouse Stationery - the "Blue Sheds" - next month.