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| Business Description | |
| Company's activities |
The Warehouse Group (WHS) is a general merchandise retailer in New Zealand operating two businesses: The Warehouse New Zealand (85 stores) and the Warehouse Stationery (43 stores in NZ). |
| Strategic Analysis | |
| Analysis of company's stated forward thinking |
The Warehouse-style store format strategy focuses on competitively-priced, house-branded products. WHS sees opportunities to grow Warehouse NZ (Red Sheds) through rolling out hyper market stores which will offer general merchandise, dry and fresh grocery under one roof. The company plans to roll out 15 such hyper market stores over the next 3 years.The stationary division (Blue Sheds) is aiming to grow by increasing the number of mega-stores and continue developing multi-channel and business to business retailing. Product mix will be rebalanced to reduce exposure to business machines, including computers, due to strong competitive pressure.WHS is stepping up capital expenditure towards improving store layout, upgrading IT infrastructure, enhancing merchandising format & quality and improving supply chain. The company also plans to lift returns by dramatically reducing working capital requirements.The Warehouse Group reported NPAT down 24.8% to NZ$29.3m for the year ended 30 June 2006. Revenues from ordinary activities were NZ$1.9bn, down 14.3% from last year. During the year, the company recorded a loss of NZ$88.8m due to divesting the Warehouse Australia business. Basic EPS was 9.6 NZ cents compared to 12.8 NZ cents last year. Net operating cash flow was NZ$153.1m compared to NZ$153.5m last year. The final dividend declared was 5.50 cents, taking the full year dividend to 16 cents compared with 14.5 cents last year. The company said real sales growth in the New Zealand retail sector over the next 12 months will be flat. Cost pressures are evident across the business especially in raw materials, currency, compliance, labour and freight costs. |
| Last Financial Year End | |
| Reporting period |
30/07/07 |
| Indices | |
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