Not so merry for The Warehouse

DISAPPOINTING: The Warehouse said its Christmas trade was not as brisk as hoped

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Retailer The Warehouse reported disappointing trading results for the Christmas period, and expects its results are an indication of what happened in the broader non-food retail market.

The Warehouse Group today said total sales for the nine weeks to January 3 were flat with the same  period last year. Same store sales were also flat year on year.

Group chief executive Ian Morrice said the company had anticipated continued steady sales growth over Christmas but that did not materialise.

``We believe that our sales are indicative of the broader non-food retail market overall,'' he said.

Sales at for the Warehouse Stationery division rose 3.5 percent for the nine weeks, with same stores sales up 4.7 percent. 

The stationery business continued its performance recovery and was well prepared for the critical back to school period in January and February, Mr Morrice said.

``We also expect that some other specialist retail formats will have increased sales when compared to the extraordinarily challenging market conditions in the same period in 2008.''

Adjusted group net profit after tax for the first half of the financial year, to January 31, was expected to be similar to last years adjusted NPAT of $56.8 million.

The half year results will be announced on March 12.

Around 11.30am, shares in The Warehouse were down 11c, or 2.6 percent, to $4.10. Among other listed retailers, Hallenstein Glasson was down 5c to 330, but Postie Plus was unchanged at 40c, Pumpkin Patch was unchanged on $2.05, and Briscoe Group was untraded having closed at $1.25 last Tuesday.

Previously, The Warehouse reported a 1.2 percent rise in first quarter sales _ to November 1 _ after adjusting for discontinued fresh produce, frozen food and liquor operations.

At that time Mr Morrice said it had been the third consecutive quarter of positive same store sales for The Warehouse. August had been solid, while September and October were below expectations highlighting a slow start to sales of seasonal categories.

Mr Morrice had cautioned in November that retail demand remained unpredictable, with the company saying that although consumer spending was expected to gradually improve, the extent of any improvement remained uncertain.

- NZPA