Clothing chain Hallenstein Glasson Holdings has warned it may have to cut its profit guidance further if sales don't improve in the summer season.
Chief executive Graeme Popplewell told shareholders the retail sector is undergoing a fundamental change in business models with more purchases being made over the internet, which has grown to become 5 percent of the company's turnover in the past two years.
"We can't measure how much business we are losing to international brands and to pure play web sites however it would be naïve to suggest there is no impact," Popplewell said.
"What we do know is that the failure of the tax system in both New Zealand and Australia to collect GST from sales made by international web sites to our customers puts us at a clear disadvantage."
Last month the Auckland-based retailer cut its guidance for first-half profit to $8 million in the six months ending Feb.1, 23 percent lower from a year earlier, and may have to trim it further if it can't improve its sales through the summer season, Bell told shareholders at today's annual meeting.
