Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Discounting makes Pumpkin Patch wary of Christmas trading

Pumpkin Patch wary of Christmas trading as retailers keep discounting

By Paul McBeth

Nov. 20 (BusinessDesk) - Pumpkin Patch, the children's clothing chain that closed underperforming stores in the US and UK this year, is wary of the upcoming Christmas trading period as the environment stays tough and retailers continue to discount their wares to attract bargain-hungry customers.

Chief executive Neil Cowie told shareholders the tough trading conditions from the 2012 financial year have carried over into the new period and he doesn't expect that will "materially improve" in the short-term.

"Promotional activity remains higher than normal as all retailers attempt to spark life into customers, but as a result, margins are impacted," Cowie said in annual meeting speech notes published on the NZX. "The general consensus out there is that Christmas will be challenging, so for that reason my primary focus is making sure we pull every trick out of the hat to maximise sales opportunities."

Pumpkin Patch has been shifting its distribution focus to online channels and away from physical outlets to keep a lid on costs, after it overhauled its structure this year, taking a $39 million charge to do so.

Cowie said the retailer has based its entire distribution operation out of Auckland and can beat delivery by local online businesses competing in its eight international markets. About 11 percent of Pumpkin Patch's Australasian sales were online in the 2012 year.

"This gives us a great platform on which to base the significant growth we are expecting from online in the future," He said.

Pumpkin Patch's international partners unit, which develops and supports relationships with third-party operators who sell the company's products, is looking at new ventures in the Middle East, Central America and Asia, though Cowie said he wasn't able to elaborate.

Chair Jane Freeman told shareholders the board will review its freeze on dividend payments at the end of the first half, but backs repaying bank debt before doing so.

Pumpkin Patch is looking at allocating shares to Cowie and his team under the existing long-term incentive scheme, and shareholders will receive a letter about the plan in the coming days, she said.

"The allocation creates a long-term retention tool and an incentive for the team to continue with the development of strategies that will drive improved shareholder value into the future," Freeman said.

The shares were unchanged at $1.25 in trading today, and have jumped 94 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news