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Retailer Postie Plus Group confirmed today it is moving its Westport warehouse operation to Christchurch, affecting 33 jobs.
It also announced it was undertaking "a strategic review" of its struggling Arbuckles homestore chain. One option included selling the chain.
It said the move of its replenishment operation from Westport was part of a major analysis of apparel distribution. The operation would amalgamate with Postie's Schooltex and Initial allocations in Christchurch in a single distribution centre managed by a third party supplier, Contract Logistics.
The expected savings were more than $2m over the next three years.
Postie said the Arbuckles chain had had a difficult time fitting into the Postie stable.
"Whilst it is showing signs of getting the right marketing message to customers the group does not see Manchester as a core product in the same way as apparel."
The company said it was committed to growing and was looking at a new apparel brand.
It said it expects a turnaround for the second half after it reports a greater first half loss than for the same period last year.
It forecast a first half loss of $2.8m.
"With ordinary trading conditions prevailing, we foresee a second half turnaround to show a full year profit after tax of around $2m," chairman Mr Peter van Rij said.
Postie usually faced more challenges in the first half, he said.
This year it blamed a "multiplicity of volatile factors".
"With full stock levels, flat sales and lower margin as a result of difficult trading conditions, the need to clear the excess stock from the previous summer and winter became imperative."
Overstocking had resulted in a difficult 12 months.
Other obstacles included the cost of moving the Schooltex operations from Westport and Auckland to Christchurch.
"As many of these costs were one off we will get some pick-up in this next half, but more importantly for the group, as previously announced we are expecting to reap more substantial benefits over the next two to three years," Mr van Rij said.
Postie shares, which have fallen from 96 cents a year ago, were unchanged on 65c today.
Kathmandu founder Jan Cameron, one of the country's richest women, recently grabbed an 8.6 per cent stake in Postie.
- NZPA
