Positive PPGL Sales Trend

NZX AND MEDIA STATEMENT
26 MAY 2010.

Positive PPGL Sales Trend

Nationwide retailer Postie Plus Group (‘PPGL’) has continued to improve performance and protect margin in challenging market conditions with third quarter sales to April of $26.532m showing an increase of 4.34% on the same period last year.

“Year to date sales of $80.603m now show a 7% increase with same store sales at +6.5% year to date,” said Mr Ron Boskell, Group Chief Executive.

“For the first time this financial year we saw our sales momentum slow down which we believe reflects the impact of the economy on the retail environment, particularly during the month of April.”

“We are pleased that PPGL has withstood the challenges within our sector with our national network across metropolitan, regional and heartland New Zealand holding expenses and maintaining good margins and cash flow.

“There is no doubt that the warm, dry autumn weather has played its part during April as every apparel retailer will attest to, however our strong marketing programme and the tremendous loyalty of our customers has ensured good progress ahead of prior years.”

“Unlike some other retailers who have made impairment adjustments because of the continuing impact of the downturn, all of PPGL’s assets continue to be in strong shape and we are growing our retail footprint.”

Mr Boskell said the Postie specialty clothing chain will open two additional branches late in the current quarter; one at Dannevirke and the other in Waipapa, just outside of Keri Keri. This will expand the chain to 81 stores nationally.

“Each of the new branches will assist the Postie customers to shop locally and ensure that Schooltex (our school uniforms business unit positioned within Postie stores) can provide new services to their local communities. Schooltex is able to offer a full range of quality classroom uniforms, sports uniforms, hats and footwear at family affordable prices.”

“We are well prepared for the final quarter which we expect to be competitive as the cold weather hits and retailers look to clear winter stocks to make way for the new season.

“PPGL anticipates no significant stock overhang at year end and we continue to control this positive position diligently.”

Mr Boskell said trading during the several trading weeks remaining until July balance date is of key importance; however the group remains on target to achieve an improved 2010 result.

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ABOUT POSTIE PLUS GROUP:

Postie Plus Group Ltd is a publicly listed company based in Christchurch. The group has three trading divisions.
- Postie is one of the largest specialty clothing retail businesses in New Zealand with a nationwide chain of 79 stores located from Northland to Southland. This includes the new Manukau store which opened in November.
- Baby City is a chain of 24 nursery retail stores located across New Zealand. The Baby City market comprises expectant mothers, parents of babies, their relatives and friends.

ENDS

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