Warehouse Thanks Internet for Sales Boost
The Warehouse is inspired by a significant increase in online sales during the first half of its financial year, the New Zealand Herald reports.
The Auckland-based company says internet revenue rose 60 per cent during the six months to January 29 this year.
Without disclosing actual sales figures, Warehouse chief executive Mark Powell said the sales boost came off a relatively low base and was mainly the result of an increased number of items online, as the company had doubled its online range during the first half of its current financial year, with 25,000 to 30,000 products now available, the Herald reports.
The Warehouse plans to have its full, 40,000 item range available on the web by July.
With increased competition from online auction site Trade Me, which is now selling more new items relative to pre-owned products, Warehouse intends to push forward for a greater market share.
"Our strategy is to bring bargains and essentials to New Zealanders in any channel and not be defined by channel, so whilst we're looking to improve those bargains and essentials in our stores we're also looking to drive that online as well."
The Warehouse reported a slight increase in first-half profit on Friday, with adjusted net profit rising to $54 million from $52.3 million a year earlier. Same-store sales, which rose 2.7 per cent in the half-year, ramped up during the second quarter of the six-month period, rising by 3.1 per cent, the Herald notes.
The Warehouse shares closed down 9c at $2.71 Monday.