KEY POINTS:
The Warehouse Group has reported a 2.1 per cent fall in first quarter sales to $366.6 million, with a slowdown particularly noted in bigger ticket items.
For the main Warehouse red sheds operation, sales for the period to October 26 were down 1.6 per cent from the corresponding period last year to $322.4m.
Same store sales were down 2.3 per cent, although adjusting for the timing of Labour Day, the same store decline was 1.6 per cent, the company said.
Managing director Ian Morrice said trading conditions had been difficult but sales were on plan for the quarter with margins being held at levels similar to last year.
"There has been a slowdown in consumption and volumes on some categories, particularly appliances and larger ticket items such as outdoor furniture and other discretionary products," he said today.
"We continue to see positive sales results in our apparel, entertainment and consumables offer which is very encouraging in the current environment."
Warehouse Stationery's first quarter sales were down 5.6 per cent to $44.2m, with same store sales down 4.4 per cent. During the quarter a new store was opened in Mt Maunganui.
Sales of core stationery categories were relatively flat, but pressure on larger ticket business machines and furniture categories had affected overall sales at Warehouse Stationery, said Morrice.
The company expected consumer spending and trading conditions to remain subdued for some time.
The figures from The Warehouse were a further indication consumers have pulled back on spending as economic conditions deteriorate.
This week clothing retailer Hallenstein Glasson Holdings said its first quarter sales declined 6.7 per cent, while homeware and sporting goods retailer Briscoe Group said its third quarter sales fell 11.2 per cent.
Shares in The Warehouse closed at $4.01 yesterday, up from a year low of $3 a month ago.
- NZPA
