Originally written and published by Joshua Allsopp at opi.net
Retail Focus Lifts Warehouse Stationery Profits
For the 12 months ended 30 July 2017, sales were essentially flat at NZ$278.2 million (US$204 million), down 0.3% on last year, due to postal price increases last year and same store sales declines of 2.6% in Q4.
However, it reported strong operating profit growth of 10.2% at NZ$15.7 million(US$11.5million), a record for the company which now has around 70 locations across the region after a renewed focus on retail, since parent company The Warehouse Group shed its financial services arm in July.
Meanwhile, Warehouse Stationery’s newly launched Print and Copy Centres continued to grow, recording a significant increase in sales and gross margin.
Cost-cutting across its operations reduced capital expenditure by NZ$1.4 million（US$1.02million） to NZ$3.9 million(US$2.9million). Operating margin increased 60 basis points to 5.7%.
Parent company, The Warehouse Group, reported that overall retail sales had risen 1.9% to NZ$2.98 billion（US$2.19million）. The Warehouse Group CEO Nick Grayston（pictured）said he expected this growth to continue into the next fiscal year.
“The next year will see exciting progress with our digital strategies as we position the business to compete successfully in the rapidly changing retail environment,” he said.