The Warehouse reports online sales ahead of domestic levels
The listed retailer says second quarter online sales growth was strong.
The Warehouse Group [NZX: WHS] has announced strong second quarter online sales growth, as it focuses on building its "click and collect" strategy.
The group’s online sales were at $52.8 million in the second quarter, up 24.1% compared to the same quarter last year, or 23.5% on a like-for-like basis.
This is ahead of domestic levels and in line with international market growth, as measured by BNZ in January.
Torpedo7 has increased its online sales 47% on the same quarter last year, Noel Leeming by 65% and The Warehouse "red sheds" by 30%.
New Zealand’s largest retail group has been pushing its "click and collect" strategy, where customers buy online and pick up later at a designated store.
The company reports 40% of Noel Leeming’s online sales are now done through click and collect while The Warehouse is at 15%. The trial of the Warehouse’s downtown Auckland click and collect store has been extended.
The Warehouse Group chief digital officer Craig Jordan says strong online sales through the Christmas trading period reflects the traction the group is getting through digital means.
More than a million unique visitors use the group’s websites each month, and Mr Jordan says work is under way to upgrade websites to be mobile compatible.
“[As well], mobile point of sale technology has been installed in our The Warehouse pop-up stores around the country, and instore, apps are improving productivity for team members and store managers.”
Earlier this month, The Warehouse reported an adjusted profit for the six months to January 31 was up 22% to $45.6 million.
First-half revenue rose to $1.57 billion, a gain of 7.1% when adjusted for the impact of a later finish to the current half, which included extra back-to-school trading.
The Warehouse expects full-year adjusted profit of $61 million to $64 million, up between 7-12% on last year.
Follow NBR on Facebook, Twitter, LinkedIn and Instagram for the latest news and free on-demand audio from NBR Radio.
Calida Smylie
Thu, 17 Mar 2016
Thu, 17 Mar 2016
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
The Warehouse reports online sales ahead of domestic levels
56544