New Zealand department store chain The Warehouse Group has reported an increase in sales - thanks in part to Rugby World Cup merchandise.
Compared to the same period last year, Warehouse, which sells discount products and fashion clothing for men, women and children, saw total sales rise 2.2 per cent, totalling $370.4 million, for the first quarter ending October 30 2011.
Chief executive Mark Powell said that Rugby World Cup merchandise had been a contributor in some categories to the sales uplift in the first quarter, and said signs of underlying improvement in core categories were emerging.
“Although it is early days we are starting to see customers respond positively to our store refresh program, modular category upgrades and the significant reinvestment we’ve made in store labour,” Powell said. “From a group perspective the company is well positioned to meet this challenge going into the critical Christmas and 'back to school' trading periods.”
The company reaffirmed that although optimistic about the prospect of recovery in the medium term, economic conditions were expected to remain volatile in the shorter term with the timing of any significant and sustainable recovery in retail trading conditions still uncertain.