Postie Plus to exit Waimate Knitwear

Postie Plus to exit Waimate Knitwear as it streamlines operations

By Paul McBeth

Nov. 27 (BusinessWire) – Postie Plus Group, the clothing and babyware chain that’s 18% owned by Kathmandu founder Jan Cameron, will exit its knitwear manufacturing in North Otago as it continues to streamline its business.

Chairman Peter van Rij told shareholders at the annual meeting in Christchurch that the retailer is selling Waimate Knitwear to the Mulqueen family as the “final part of the rationalisation of group interests.” Earlier this year, Postie Plus sold its unprofitable Arbuckle manchester chain to Cameron and consolidated distribution to one Christchurch centre in a bid to cut down costs and improve its stock management.

“Inventories are at the right size for the first time in a long while, and the quality of the inventory is much higher, with an improved mix of current season stock,” van Rij said. “The Profit Improvement Programme has squeezed costs out of the supply chain, at each step on the way to the consumer” and the company saved $1.7 million in the 2009 year, he said.

Postie Plus joins Warehouse Group and other retailers which are more upbeat about their assessment of the current state of the economy, as they prepare for the Christmas shopping season. Retailers were the only sub-group to show an increase in confidence this month, according to the National Bank Business Outlook, even as consumer sentiment about the current state of the economy remains subdued and raises the prospect of a slow retail period.

The shares were unchanged at 45 cents and have climbed 23% in the past six months, outpacing the 18% gain in the NZSE Consumer Index.

Since implementing the changes, Postie Plus boosted its first-quarter sales 15% and the company expects to improve on its $2.6 million first-half loss last year. Chief executive Ron Boskell said he’s “committed to closing the gap on last year’s $2.68 million first-half loss” though he declined to say by how much.

(BusinessWire)

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