New Zealand department store chain The Warehouse Group has revealed it will market four properties, including three of its retail stores, as the company moves ahead with a new strategy.
The properties, which also include The Warehouse Group's North Island distribution centre in Wiri in addition to the three stores, will be marketed on a sale and leaseback basis through Colliers International.
In a statement today, the company said the sales process is expected to be completed during the next six months and will generate sale proceeds of approximately $100 million, if all the properties are sold.
Group CEO Mark Powell said the proceeds will be funnelled back into the business.
“The Warehouse regularly reviews its property holdings to determine whether to own or lease a particular property, and the most recent review has resulted in the marketing if these properties,” he said.
“The sales proceeds will be reinvested in the business in line with the priorities identified in the company's strategic plan.”
The move follows The Warehouse Group's latest financial results, which showed an uplift in sales for the third quarter of the 2012 financial year.
The results, for the third quarter ended April 29, saw group sales soar to $394.2 million, up 3.3 per cent on the previous corresponding period, with sales for The Warehouse component of the business also up, 3.5 per cent to $338.4 million.
However, Powell reported that while most merchandise departments performed well during the quarter, apparel in particular was lacklustre.
“Apparel continued to be impacted in February and March by the challenges of exiting a mild summer,” he said.
Going forward, chairman Graham Evans said that the long-term strategy outlined last year is in its early stages, and will take time to translate into profit growth for the company.
Consequently, guidance is unchanged for the group, with adjusted net profit after tax for the full year expected to be between $62.0 million and $66.0 million.