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The Warehouse,
where everyone
gets a bargain.
This iconic tag line is precisely what
we do and have done since we started
in 1982 – and we stand by this value
proposition. We know our customers
have more choice than ever before and
higher expectations about the products
they are buying, what represents value
and how and where they will shop.
They come to us because they know
and trust our brand and we deliver
simply great value across our huge
range of quality products.
Key elements of our
strategy going forward
We’ve developed a clear framework for our
brand on pricing, products and promotion
We’ll drive growth in product categories
We are radically improving the store
experience through great execution
Trading environment
The past few years have been characterised by a trading
environment made uniquely challenging by the collapse
of global financial markets and the resulting downturn in
economic activity, combined with increasing competition
and significant shifts in consumer sentiment and behaviour.
Over this period, however, we have maintained profitability
and continued to generate strong cash flows.
The Global Financial Crisis and resulting recessionary
environment have continued to suppress consumer
confidence and spending. At the same time, we are faced
with ever-increasing local competition in a promotionally
driven market. Consumers are savvy, changing where and
how they shop and often researching before they purchase
many items, including their daily essentials.
In the latter part of the financial year, we focused on
developing a strategy for sustainable sales and earnings
growth over the medium to long term. The newly configured
executive team has been instrumental in driving the new
strategy and I know they will deliver the change we desire.
Retail is about detail. It’s not complicated. Everything
starts and finishes with the customer. We have to ensure
our people are delivering for the customer and we have
to deliver a profit. We will improve the execution of the basics:
achieving the mix of product, price, promotion and our
in-store environment. We will deliver on these basics by being
customer led and store focused with a people-centred culture.
Where everyone gets a bargain
One in five New Zealanders come into our stores each
week. They come to us to get their essential household
items, such as towels, cookware, t-shirts and socks,
knowing they will also find ‘knock out’ bargains. To meet
their expectations, we must consistently provide a huge
range, low prices, excitement and trust.
Where everyone gets a bargain has incredible resonance
with New Zealanders. Our customers can rely on us to
supply exciting products at bargain prices, but we also want
them to trust us to provide all their essentials. We aim to
build on this by being the house of bargains and the home
of essentials.
We are rejuvenating our store infrastructure
We are establishing a clear way of working
In-store experience
Our customers’ experience in-store is what really counts.
Credibility with customers that we can deliver on the retail
basics is vital if we are to successfully move into new
categories. We have already put some changes in place.
We have boosted front-line team numbers, improved
support systems and we are training our team to “see
things through the customer’s eyes”. We acknowledge
it will take time for our customers to recognise the
improvements. Initial feedback is extremely positive with
an improved perception of the way stores ‘look and feel’.
We are confident other performance improvement measures
will start to follow through shortly.
Our focus is on putting the things in place that will get us
to where we want to be. We will continue to ensure there
are sufficient resources, training and support for consistent
in-store execution of the basics from clean and tidy stores
of which we are proud, through to product knowledge and
improved on-shelf availability. These are all critical to driving
increased sales and improved customer experience.
Rejuvenating our stores
The store is the physical embodiment of our brand and what
it stands for. We’ve refreshed our brand and, over the next
three to five years, we plan to invest nearly $250.0 million
to improve the internal and external presentation and layouts
of our stores. We have analysed our network to determine
the optimum format for each store so that we can be sure
we’re spending money where it will be most effective.
THE WAREHOUSE 12
THE SECTION WAREHOUSE TITLE 13